What is society, it's advantages & disadvantages - tradecareer.blogspot.com

   What is society, it's advantages & disadvantages

 A society is an association of persons united together by mutual consent to deliberate, determine and act jointly for some common purpose. 

Societies are usually registered for promotion of charitable activities like education, art, religion, culture, music, sports, etc., 

In India, The Societies Registration Act, 1860 lays down the procedure for society registration and operation in India. 

The Act has been adopted by most of the State Governments with/without modifications as considered by the respective State Governments.

According to Section 20 of the Societies Registration Act, 1860, societies can be formed for the following purposes: 

i. Charitable societies, 

ii. The military orphan funds or societies established at the several presidencies of India, 

iii. societies established for the promotion of science, literature, or the fine arts for instruction, the diffusion of useful knowledge, 

iv. The diffusion (spreading) of political education, 

v. the foundation or maintenance of libraries or reading-rooms for general use among the members or open to the public,

vi. public museums and galleries of paintings and other works of art, collections of natural history, mechanical and philosophical inventions, instruments, or designs. 

Besides these purposes, the respective State Governments may provide for any other objects by their legislations.

                                                                        


Advantages of Society

=> The process of formation and registration is simple.

=> Record-keeping requirements are minimum and compliance with regulations is easy. 

=> Cost of compliance is low. 

=> Least possibility of interference by the regulator. 

=> Exemption from tax due to charitable nature of operations.

Disadvantages of Society

=> Since such institutions are of charitable nature, it is an inappropriate form of a commercial venture; 

=> The concept of equity investment or ownership is virtually absent; Hence, it is not attractive for commercial investors interested in microfinance; 

=> Commercial investors regard the investments in such entities as risky mainly on account of their lack of professionalism and managerial practices and political leanings( in some cases) and are, therefore, reluctant to provide large scale funding to such bodies; 

=> In accordance with Section 45S of the RBI Act, 1934, no unincorporated bodies are allowed to accept deposits from the public. Organisations registered under the Societies Registration Act and the Trust Act are considered unincorporated bodies. 

=> It is vulnerable to the implication under the Money Lenders Acts (prevention of usurious interest rates) of various State Governments.

Comments

  1. Preeti Agarwal14 October 2021 at 05:19

    Thanks for this information and for What is society, it's advantages & disadvantages . A “Society” is an organized group of persons who deliberately comes together with an objective to serve society without any intent to earn profits. Please write for Online Trust Registration in India. Thanks for sharing such a great article with us.

    ReplyDelete
  2. Registration Mitra13 February 2022 at 22:53

    Thanks for sharing the information.
    Company registration is simply a stage in the process of legally establishing your business. It means that once you register as a business, you get all of the legal rights to operate your company. Allow me to clarify what the benefits of online society registration in Delhi are for you.

    ReplyDelete
  3. Joe14 February 2022 at 03:53

    Thank you for this helpful blog , i found this very helpful.
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  4. Legal Biznezz25 July 2022 at 01:28

    The concept of "Society Registration" is an attempt to preserve identity in a digital world where all it takes is a few keystrokes to replace a name with an online persona. The process of taking a person's identity and using it to access and operate the internet or certain services is called "identity theft." It can be devastating for individuals and businesses. In order to safeguard yourself and others against the potential consequences, you should know what "registration" is, how it is used, and what types of people take advantage of it.

    ReplyDelete
  5. Finance and Accounts30 July 2022 at 08:44

    A society that has at least 7 members will be recognised for registration under the Society Registration online Act of 1975.
    To register a society, a group must have at least 20 members and a minimum of Rs. 10,000 in yearly gross income or expenditures.

    ReplyDelete
  6. Harvey Specter23 August 2022 at 22:43

    The low compliance requirements of a sole proprietorship in India attract many entrepreneurs to begin their businesses. Over time, the business will grow and the revenues will significantly increase.
    A sole proprietorship firm will now be converted into a private limited company in order to limit its liability and separate its bank accounts and tax filings.
    Learn More: How to Convert Proprietorship to Private Limited Company

    ReplyDelete
  7. Stewe Smithz23 September 2022 at 05:53

    Several procedures must be followed to register and operate a society in India, in accordance with the Society Registration Act. To enhance the legal stipulations of society registration in order to advance literature, fine art, science, or awareness for bountiful purposes, this act was instituted. The society registration act of 1860 has been accepted by several state governments without or with additional amendments.

    Society Registration

    ReplyDelete
  8. Michael Kong30 September 2022 at 02:44

    What Is the Lease Agreement - Landlords and tenants define their rights and duties in a lease agreement, but the lease agreement does not specify how long it can remain valid. In addition to specifying the date rent will be paid, the lease contract also specifies other terms related to the rental process, such as deposits, fees, and taxes.

    ReplyDelete
  9. Anonymous30 September 2022 at 05:02

    For the purpose of gathering pertinent data, the payroll management involves communication with several departments and experts. Data collection may be a challenging process in MNCs and huge enterprises. A unified source or fewer teams provide the inputs for SMEs, nonetheless.

    ReplyDelete

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