Consequences of Registration or Non-Registration of the Society - tradecareer

 Consequences of Registration or Non-Registration of the Society

The Societies Registration Act, 1860 lays down procedure for registration of societies for various bonafide purposes. The registration gives the society a legal status and is essential for: 

=> obtaining registration and approvals under Income Tax Act; 

=> lawful vesting of property in the societies; 

=> provides authenticity and recognition to the society before all authorities .

=> for opening bank accounts and transaction of business.Effect of Registration

=> Only after registration, the internal rules & regulations and bye – laws bound its members.

                                                                   


=> The society can undertake only the activities which are mentioned in its objects.

=> A non-registered society may exist in reality but not in law. Means it has no identity in the eyes of law.

=> An unregistered society cannot claim benefits under the Income-tax Act, 1961.

=> Only a registered society can sue and be sued.

Note: An object which is inconsistent with the Act shall be inoperative even after registration.



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