Meaning of cooperative society
- Meaning of cooperative society
- How can we form a cooperative society?
- Features of a Cooperative Society
- Objectives of cooperative society
- Types of Cooperative Society
- Housing Cooperative Society
- Producer Cooperative Society
- Consumer Cooperative Society
- Marketing Cooperative Society
- Benefits of cooperative society
A Co-operative society can be defined as the community or association of persons getting mutually together for a particular mission of the equivalent region. Accordingly, voluntarily and some like-minded people create a society to meet the financial, cultural and developmental wants. It is a self-governing body regulated by their own members of a society who focus on participating in establishing their policies and plans. The making decisions process is carryout individually for the benefit of the members of the society.
A cooperative society is created with the chief purpose to help the people and advance the economic status within the society. This society is a universal concept as co-operative societies are active worldwide and are depicted in all the divisions including lifestyle, healthcare, agriculture, finance, food, travelling etc.
To preserve the benefit to smaller sectors, the co-operative society is created. It is a permissive association of people, whose purpose is the welfare of the members of the society.
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. The members are willing to build a society which needs to have a common interest and bond between them. They may be the citizens of similar locality or operators of some organisation. The fundamental thought is that all the people planning to form society should have few mutual goals to accomplish.
The application for building society must have the following details:
- Name and address of the society
- Names and addresses of society members
- Objectives and aim of society.
- Share capital and its division.
- A form of admitting new members.
- A copy of the bye-laws of the society.
The demanded documents are registered in the official website of Registrar of Cooperative Societies. The Registrar views the documents if documents fulfil all the demand documents as per requirements then the society’s name is entered in the register. Certification of registration is assigned to society. The society will shift into a corporate body from the date specified in the certificate. If you are looking forward to Society registration you can visit our website LegalRaasta.
Features of a Cooperative Society
- The cooperative society has open membership. A co-operative society has voluntary essence. The membership of a cooperative society is open to all people irrespective of caste, colour, race, creed, or gender. When a co-operative society formed, no difference can be made on the basis of creed, caste, gender and race. For example, a housing society of doctors of a particular hospital or clinics is formed and non-doctors may be refused for membership the co-operative society formed by doctors.
- The co-operative society’s managing board can also suspend any member for any misbehave and undisciplined activities. The subscription list of the society is not blocked after a set period and there is no such barrier in time duration that how long the society will stay. The co-operative society’s managing board can also suspend any member for any misbehave and undisciplined activities.
- The cooperative society serves on the policy of mutual cooperation & welfare. Therefore, the principal of service rules it’s operating. If any profit is generated, it is divided between the members as a share in compliance with the bye-laws of the co-operative society.
- There is a restricted liability of the members in co-operative society. Liability is confined to the measure the amount offered by members as capital.
- The society does not get affected by the entrance or departure of its members.
Objectives of cooperative society
- The functioning of business activities are honest and genuine
- To implement supportive services to the members of the cooperative society and never aims to gain the profit.
- The society produces, offer and deliver the quality /standard goods. Also, they deliver goods to the end customers.
- To support each other mutually with a great understanding and not to have competition among themselves.
Types of Cooperative Society
The cooperative societies have people of all the fields and work for different kind of groups. So to make a common field of interest for the people, they categorized in different cooperatives societies. The types of cooperative societies.
Housing Cooperative Society
The housing Cooperative society to support people with inadequate income to build homes at inexpensive costs. Their aim is to resolve the housing problems of the members. A member of this society intends to provide the homes for living at a lower cost. They build the homes and provide the choice to members to make payments in instalments to purchase the house. They build flats or provide plots to members on which the members themselves can build the homes as per their preference. For housing cooperative society there are special benefits are rendered by goverment as in personal loans.
Producer Cooperative Society
The producer cooperative societies are set up to secure the concerns of small producers. The co-operative society members can be a Landlord, farmer, or the partners of the casting operations. To enhance marketing opportunities and production performance, producers choose to as work separate entity or mutually. They conduct various activities like marketing, processing & delivering their own products. This benefits in reasonable costs and efforts in every area with a common advantage to every producer.
Consumer Cooperative Society
This society is controlled and directed by the word cooperative indicates working mutually with others for a common motive, vision and mission. The cooperative society is a voluntary organisation of persons, who meet together with the aim of the benefit for the members of the society. They meet to preserve themselves from the likely exploitation at by middlemen who aspires to gain a higher profit. customers of a singular area for their common benefit. Their way is to give daily necessary goods at an excellent price. Rather than receiving a monetary profit, their purpose is to provide services to the consumers.
Marketing Cooperative Society
The marketing cooperative society secures a beneficial market for the products trade. They drop the middlemen and develop the competitive status of its members. Various marketing roles like packaging, transportation, warehousing etc are conducted by the cooperative societies to trade the product at the best reasonable price.
The word cooperative indicates working mutually with others for a common motive, vision and mission. The cooperative society is a voluntary organisation of persons, who meet together with the aim of the benefit for the members of the society. They meet to preserve themselves from the likely exploitation at by middlemen who aspires to gain a higher profit.
Benefits of cooperative society
- A co-operative society is operated on the policy of democracy. It indicates that every member has the same rights in conducting the operations in society. Members with capital power cannot control the management by buying a bulk of shares.
- The surplus received by the cooperative societies is divided in an equal way between members. Hence all the members of the cooperative society are benefited. Moreover, society is 10% amount of the surplus can be used for developing the welfare of the people in a cooperative society.
- Co-operative societies trade in great amounts and quantities straight from the producers or to the customers. Products are prepared and ranked before they are exchanged. A great amount of sale and purchase assure reasonable prices and high-grade quality.
- When the aggregate turnover of a CooperativeSocieties in a financial year exceeds Rs.12 lakh they have to pay GST. They become liable for GST Registration.
- The cooperative society has to pay low tax. So they can easily develop the movements or campaigns in society. The fact about the co-operative society is that they are non-profit society. They only work for the welfare of society. Therefore, the government gives various privileges and concessions in terms of tax. The ITR Filling process is way simpler to the cooperative society in comparison to others.
- The council and goverment keep viewing the development and promote the growth of cooperative societies. They spread all support and facilities to them at their best. Goverment renders loans at low-interest rates, gives subsidies etc.
For more details connected with Society Registration, you can visit our website services LegalRaasta.Our expert team will guide you in every part connected with society registration and its formation You can download our app which is easy to access in android mobiles LegalRaasta APP. Even you can give us a call at 8750008585 and feel free to send your query on Email: firstname.lastname@example.org