Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

How to start a co-operative society under an existing ngo

Abhishek Gupta (Accounts Manager) (97 Points)

10 January 2016

Dear All, One of my friends is running an NGO in West Bengal and he along with the other governing body members want to start farming of medicinal herbs in the farms of local people having few bighas of land. Proceeds from sale of such herbs will be given to such farmers. My query is Whether such activities could be done in the existing NGO? If yes, then what legal formalities are to be followed? If no, then what is the procedure to form a new cooperative society, how long will it take to form such one and when such activities shall start after such formation. Request you all to kindly advise me at the earliest as the matter is very urgent.

Reply
Follow
Share

1 Replies

Rama chary Rachakonda (Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294) (4984 Points)
Replied 10 January 2016

PROCEDURE FOR REGISTRATION OF CO-OP. SOCIETIES

1.The first Step is to get 10 Individuals together who are desirous of forming a Society.
2.A Provisional Committee should be formed and a chief Promoter should be elected from amongst them.
3.A Name for the Society has to be selected.
4.An Application has to be made to the Registration Authority for reservation of Name and a letter to that effect has to be obtained confirming the reservation of Name. The name once reserved is valid for 3 Months.
5.The entrance fees and share capital has to be collected from the prospective members.
6.A Bank account has to be opened in the name of the proposed society as per the directions of the registration Authority. The entrance fees and share money has to be deposited in the bank account and the certificate from the bank has to be obtained in that respect.
7.The registration fees has to be deposited with the Reserve Bank of India and receipted 1challan thereof is to be obtained.
8.The application for registration of the society should be submitted to the Registrar of Societies of the concerned municipal ward. The documents to be submitted for registration are as follows :
a.Form No. A in quadruplicate signed by 90% of the promoter members
b.List of promoter members
c.Bank Certificate
d.Detailed explanation of working of the society.
e.4 copies of proposed bye-laws of the society.
f.Proof of payment of registration charges.
g.Other documents like affidavits, indemnity bonds, any documents specified by the Registrar also have to be submitted.
9.The Registrar will enter the particulars in register of application maintained in Form “B” and give serial number and issue receipt in acknowledgment of the same.
10.On registration, the Registrar will notify the registration of the Society in the Official Gazette and issue Registration Certificate.