Cooperative society registration is a legal process that enables a group of individuals to come together and form a society for a common purpose. In Bihar, India, cooperative society registration is governed by the Bihar Cooperative Societies Act, 1935 and the registration process is overseen by the Registrar of Cooperative Societies.
Meaning and Definition: A cooperative society is a voluntary association of individuals who come together to promote their economic and social interests. The society is formed on the principle of mutual assistance and is operated for the benefit of its members. The main objective of a cooperative society is to provide a platform for its members to collectively undertake economic activities for their mutual benefit.
Legal Provisions: In Bihar, cooperative society registration is governed by the Bihar Cooperative Societies Act, 1935. The Act provides for the formation and registration of cooperative societies and outlines the rules and regulations for their operation. The Registrar of Cooperative Societies is responsible for the registration and regulation of cooperative societies in Bihar.
Process: The process for cooperative society registration in Bihar involves the following steps:
- Formation of a core group of individuals interested in forming the society.
- Conducting a feasibility study to determine the viability of the proposed society.
- Drafting the bylaws of the society, which should contain details such as the name of the society, the objectives, the area of operation, and the membership criteria.
- Submitting the application for registration of the society to the Registrar of Cooperative Societies.
- Paying the required fee for registration.
- Waiting for the Registrar to review and process the application.
- Upon approval, the society will receive a certificate of registration from the Registrar.
Advantages: Cooperative society registration offers several advantages, including:
- Collective bargaining power for members.
- Access to credit and financing for economic activities.
- Shared ownership and control of economic resources.
- Provision of social and economic services for members.
- Legal recognition and protection of the society.
Disadvantages: Cooperative society registration also has some disadvantages, including:
- Limited individual control over decision-making processes.
- Potential for disputes and conflicts among members.
- Difficulty in raising external funds.
- Risk of mismanagement and fraud.
- Limited liability of members in case of losses.
Cost involved: The cost of cooperative society registration in Bihar depends on the size and nature of the society. Generally, the cost can range from Rs. 1,000 to Rs. 5,000.
Time involved: The time involved in cooperative society registration in Bihar can vary depending on the workload of the Registrar of Cooperative Societies. Typically, the registration process can take anywhere from 30 days to six months.
Documents required: The documents required for cooperative society registration in Bihar include:
- A copy of the proposed bylaws of the society.
- A list of the founding members of the society, along with their names and addresses.
- A copy of the minutes of the first meeting of the society.
- Proof of address of the society, such as a copy of the rent agreement or property ownership documents.
- Payment of the required fee.
In conclusion, cooperative society registration is a valuable process for individuals in Bihar who wish to collectively undertake economic activities for their mutual benefit. While it involves some cost and time, it offers several advantages, including access to credit, shared ownership and control of resources, and legal recognition and protection. Individuals interested in cooperative society registration should carefully consider the eligibility criteria and requirements outlined in the Bihar Cooperative Societies Act, 1935.
Definition of Cooperative Society
A cooperative society is a voluntary association that started with the aim of the service of its members. It is a form of business where individuals belonging to the same class join their hands for the promotion of their common goals.
His philosophy of the formation of a cooperative society is “all for each and each for all”. Cooperation work with the feeling of helping others.
A co-operative society is entirely different from all other forms of business organization. It protects the interests of the weaker sections of the society. It is a voluntary association of persons joined together on the basis of equality for fulfillment of their economic and business interests.
Eligibility to forming a Co-operative Societies
A group of ten persons can form a co-operative society. In India, such societies function under the Co-Operative Societies Act, 1912 and other State Cooperative Societies Acts.
The main objectives of co-operative society are:
- To render service rather than earning profit,
- To provide mutual help instead of competition. and
- To offer self help
CO-OPERATIVE SOCIETIES FORMED FOR:-
Co-operative societies are formed with the principles of co-operation. It is formed primarily to render services to its members. It also provides some service to the society.
On the basis of objectives, various types of Co-operatives are formed. They are Consumer co-operatives, Producers co-operatives, Marketing co-operatives, Housing Co-operatives and Credit Co-operatives.
FEATURES OF CO-OPERATIVE SOCIETIES
1. It is a voluntary association of persons. Individuals having common interest can join together to form a co-operative society.
2. To form a co-operative society, there has to be a minimum number of 10 members. It can have unlimited members at maximum.
3. Co-operative societies has to be compulsorily registered under the Co-operative Societies Act..
4. Co-operative society can enjoy perpetual succession.
5. It has its own common seal.
6. It can own property in its name and enter into contract with others.
7. It can sue others in court of law.
8. The aim of any co-operative society is to provide service to its members and to the society in general.
9. Each member has got the right to vote and can take part in the management of the society.
10. A co-operative society starts with a fund contributed by its members in the form of units called shares. The capital of the co-operative society is the funds provided by the members by purchasing shares. It can also raise loans and obtain grants from the government easily.
11.Members of a Co-operative society enjoy a fixed rate of dividend after deduction from the profit for the capital subscribed.
ADVANTAGES OF CO-OPERATIVE SOCIETIES
1. It is easy to form a co-operative society. Any ten persons can join together and voluntarily form an association. They can register themselves with the Registrar of Co-operative societies.
2. The liability of every member is limited to the extent of capital contributed by him.
3. Any individual can be a member of any co-operative society.
4. Co-operatives get a financial assistance from the State governments and enjoys exemptions and concessions in taxes.
5. The middleman’s profit is eliminated as the consumers control their own supplies through co-operative societies.
6. Each member has only one vote. Hence, it is managed in democratic manner.
7. It has got perpetual succession and enjoys legal entity.
DISADVANTAGES OF CO-OPERATIVE SOCIETIES
1. The amount of capital generated by co-operative society is limited because of the members belonging to same locality or region or a particular section of people.
2. Co-operatives do not function efficiently due to lack of managerial abilities.
3. It does not enjoy professionalism as they cannot employ professionals at initial stages due to limited funds.
4. Co-operatives, are formed to render service to its members than to earn profit. This motive does not encourage co-operatives to function effectively.
5. Among the members, there exists lot of conflicts due to personality differences, ego etc.
6. Secrecy cannot be maintained in co-operative societies.
7. The co-operative societies mostly depend on government for financial assistance.
8. Co-operative societies are not suitable for business organizations that has objective to earn profit.
Qus:-How can we form a cooperative society?
A co-operative society needs to be established under the Co-operative Societies Act, 1912. It can also be created under the applicable state co-operative society’s regulation. A co-operative society can be created by a minimum of 10 adult members
Qus:-What is the purpose of forming a cooperative society?
A co-operative society is a voluntary association of individuals having common needs who join hands for the achievement of common economic interest. Its aim is to serve the interest of the poorer sections of society through the principle of self-help and mutual help.
Qus:-Which among the following is the key factor behind the formation of cooperative societies?
A Cooperative Society has been formed behind the following broad objectives: To render services to its members instead of making profits. It encourages a state of mutual help in the place of competition. It assumes a state of self-help in the place of dependence.
Qus:-Who takes decision in cooperative society?
For matters which requires the sanction of the registrar of cooperative societies in Delhi it shall be submitted to the Registrar of cooperative societies , through the Joint Registrar of cooperative societies, for order or decision or approval or permission, as the case may be.
Cooperative society registration in Bihar, India is a legal process that enables individuals or groups to form a cooperative society for the purpose of carrying out economic activities. Cooperative societies are voluntary organizations that are owned and managed by their members. They are established with the objective of promoting the economic and social interests of their members through mutual cooperation.
The legal provisions for cooperative society registration in Bihar are governed by the Bihar Cooperative Societies Act, 1935, and the Rules made thereunder. The Act provides for the registration of different types of cooperative societies, including credit societies, consumer societies, housing societies, and agricultural societies, among others.
The process for cooperative society registration in Bihar involves the following steps:
Formation of a society – A minimum of ten individuals or five registered societies are required to form a cooperative society. They must come together and agree on the name, objectives, and rules of the society.
Preparation of necessary documents – The following documents are required for cooperative society registration in Bihar:
- Memorandum of Association
- Articles of Association
- Application for registration
- List of members and their addresses
- Bank statement of the proposed society
Submission of documents – The documents must be submitted to the Registrar of Cooperative Societies along with the required registration fees.
Inspection and verification – The Registrar will verify the documents and inspect the proposed society to ensure compliance with the Bihar Cooperative Societies Act, 1935.
Registration – If all requirements are met, the Registrar will issue a certificate of registration to the proposed society.
Advantages of cooperative society registration include access to government subsidies and loans, tax exemptions, and increased bargaining power for members. Members also have a say in the management of the society, and profits are distributed among them based on their contributions to the society.
However, cooperative society registration also has some disadvantages, such as the possibility of conflicts among members, limited liability protection, and lack of autonomy in decision-making.
The cost and time involved in cooperative society registration can vary depending on the type and size of the society. Generally, the cost of cooperative society registration can range from a few thousand to tens of thousands of rupees. The time involved in the registration process can range from a few weeks to several months.
In conclusion, cooperative society registration in Bihar is a legal process that enables individuals or groups to form a cooperative society for the purpose of carrying out economic activities. The process involves complying with the Bihar Cooperative Societies Act, 1935, preparing necessary documents, and submitting them to the Registrar of Cooperative Societies. Cooperative society registration offers several advantages, including access to government subsidies and loans, tax exemptions, and increased bargaining power for members. However, it also has some disadvantages, such as the possibility of conflicts among members, limited liability protection, and lack of autonomy in decision-making.