How to Register a Society in Andhra Pradesh and Telangana under the 2001 State Acts

A society is a membership association formed for art, charity, crafts, religion, sports, literature, culture, science, political education, philosophy, the spread of knowledge or any public purpose. In Andhra Pradesh it registers under the Andhra Pradesh Societies Registration Act 2001. In Telangana it registers under the Telangana Societies Registration Act 2001.

The two Acts are the same law. The Telangana Act is the Andhra Pradesh Act as it stood in the combined State on 2 June 2014, adapted to Telangana under section 101 of the Andhra Pradesh Reorganisation Act 2014 by G.O.Ms.No.20, Revenue (Regn - II) Department, dated 18.08.2014 (s.1 footnote, Telangana Societies Registration Act 2001). We compared both texts section by section for this article. Where we cite "the Acts", the wording is the same in both. The only difference that matters in practice is which state you file in.

Which Act applies to you

Each Act extends to the whole of its own State (s.1(2), AP and Telangana Societies Registration Acts 2001). You file with the Registrar of the district in which the society's registered office will be (s.4(1)). A society with its office in Hyderabad registers under the Telangana Act. A society with its office in Vijayawada registers under the Andhra Pradesh Act.

Both Acts repealed the Societies Registration Act 1860 in its application to the Andhra area, and the Andhra Pradesh (Telangana Area) Public Societies Registration Act, 1350 Fasli. Anything done under those older laws, including certificates and bye-laws, is treated as done under the 2001 Act (s.32, AP and Telangana Societies Registration Acts 2001). A society registered earlier therefore carries on without re-registering.

Who can form a society

Any seven or more persons forming a society for one of the listed objects may register (s.3(1)). The objects are art, fine art, charity, crafts, religion, sports (excluding games of chance), literature, culture, science, political education, philosophy, diffusion of any knowledge, or any public purpose.

A "member" can be an individual or a body corporate (s.2(h)). Firms and unincorporated associations are treated differently. No society of which a firm, registered or not, or an unincorporated association of individuals is a member can be registered (s.3(2)). A partner of a firm, or a member of an unincorporated association, can still join in his individual capacity (s.3(3)).

What you file

Three things go to the district Registrar (s.4(1)):

• A memorandum of association stating the society's name, its aims and objects, and the names, addresses and occupations of the members of the committee.
• The bye-laws of the society.
• The notified registration fee (see "Fees" below).

The memorandum must be signed by at least seven members who are majors (adults). Each signatory adds his address, description and occupation, if any. They sign in the presence of at least two witnesses who are also majors. The witnesses attest with their signatures and add their own addresses, descriptions and occupations, if any. The bye-laws are signed by the same people who signed the memorandum (s.4(2)).

The committee you name must have at least three members of the society (s.14(1)). A person is disqualified from the committee if, on the date of appointment, he is not a major, is of unsound mind and so declared by a court, is an applicant for insolvency or an undischarged insolvent, has been convicted of an offence involving moral turpitude or sentenced to a fine of not less than ₹1,000 or imprisonment of not less than six months, or is disqualified by a court order (s.15). Check each proposed committee member against that list before you name them.

Documents the Registrar's office asks for

The Acts name the memorandum and the bye-laws. The Andhra Pradesh Registration Department's published FAQ lists a wider set for a registration application: an application, proceedings of the first meeting, the memorandum, a list of executive committee members with name, address, occupation, age and signature, the bye-laws, an affidavit, and passport-size photographs of committee members (the FAQ notes that photographs are insisted on in some district offices). We found no Telangana equivalent on file, so ask your district Registrar for the current checklist before you print anything.

What the bye-laws must cover

Both Acts list the same mandatory contents (s.5):

• The society's identity, meaning its name and address.
• Its activities.
• Membership: eligibility, admission, withdrawal and termination.
• The general body: how meetings are held or convened, quorum, functions and responsibilities.
• Office bearers: appointment or election, removal, recall and responsibilities.
• Finances: the types of funds to be raised, appointment of auditors, and the liability of members for discharging debts.
• Internal matters: settlement of internal disputes and dissolution of the society.

The bye-laws must also specify how often the committee and the general body meet. The Act sets the floor: the committee at least once in every three months, and the general body at least once in a year (s.20(1)). A requisition signed by at least one third of the members obliges the committee to convene a general body meeting within thirty days (s.20(2)).

Choosing a name

A name cannot contravene the Emblems and Names (Prevention of Improper Use) Act 1950 (s.6(1)). Within a district, no society can be registered under a name identical to another registered society, or so nearly resembling it as to mislead. The one exception is where the existing society is in the course of being dissolved and signifies its consent in writing (s.6(2)(a)).

Without the Government's previous written sanction, a society cannot be registered under a name containing "Co-operative", "Land Development", "Reserve Bank", "Union", "State" or any word implying the sanction, approval or patronage of the Central or a State Government, or "Municipal", "Chartered" or any word suggesting a link with a municipality or other local authority (s.6(2)(b)). The proviso exempts societies registered before the Act came into force.

A registered society can change its name by special resolution, with prior written intimation to the Registrar. The change does not affect the society's rights or obligations, or any pending legal proceedings (s.6(3) and (4)). A special resolution needs a majority of the total members and not less than three-fifths of the members present and voting, at a meeting for which at least fourteen clear days' notice specified the intention to propose it (s.2(o)).

Fees

The registration fee is whatever the State Government notifies in its table of fees under section 29 (s.7(1) and s.29, AP and Telangana Societies Registration Acts 2001). The Acts themselves state no figure.

The Andhra Pradesh Registration Department's FAQ, which is undated, gives the registration fee as ₹200 and a yearly fee for filing accounts and the committee list as ₹100. We could not find a Telangana fee table on file. Treat the Andhra Pradesh figures as a pointer, not a quote, and confirm the current notified fee with the district Registrar before you file.

Certificate, refusal and the 60-day clock

Once the society has complied with the registration provisions and paid the notified fee, the Registrar issues a certificate of registration. The certificate is conclusive evidence that the society is duly registered (s.7(1)).

Two sixty-day rules sit in section 7:

• Refusal. If the Registrar refuses to register the society, you can appeal to the Registrar General within sixty days from the date the refusal order is communicated. The appeal must carry the fee the Government notifies (s.7(3)).
• Deemed registration. If an application that complies with all the provisions of the Act is not disposed of within sixty days, the society is deemed registered, and the Registrar must issue a certificate to that effect (s.7(4)).

Registration makes the society a body corporate with perpetual succession and a common seal. It can hold property, contract, and sue and be sued in its name (s.18; s.19).

After registration

Registration starts a set of continuing duties. All of these are in the Acts.

Registered office. From the day it begins functioning, or the twenty-eighth day after registration if that is earlier, the society must have a registered office in the district where it is registered. The Registrar must be told its location, and any change, within twenty-eight days. A move to another district must be intimated to the Registrars of both districts. The society must display its name outside its office and have it engraved on its seal (s.10).

Committee records. The society keeps a register of the names, addresses and occupations of committee members. It files a copy with the Registrar within fourteen days of electing the first committee, and a notice of every change in the committee within fourteen days of the change (s.14(3)).

Annual list. Every year, within fifteen days of the date the general body meeting was held, the society must furnish the Registrar with a list of the names and addresses of the managing committee members and the officers entrusted with management (s.9).

Register of members. It records each member's name, address and occupation, the date entered, the date the person ceased to be a member, and specimen signatures (s.11). It is open for inspection during business hours, subject to reasonable restrictions in the bye-laws (s.13).

Records kept at the office. These are a copy of the Act with up-to-date amendments; the registered memorandum with up-to-date bye-laws; the minutes book; accounts of money received and spent and their purposes; accounts of purchases and sales of goods; accounts of assets and liabilities; an up-to-date list of members with voting rights, prepared within thirty days of the close of the financial year; and copies of audit reports and any compliance reports (s.12). A register of mortgages and charges is also kept at the registered office (s.22).

Minutes. Minutes of every general body and committee meeting are recorded in the minutes book, signed by the person who chaired the meeting, and communicated to the members invited within thirty days of the meeting (s.20(3) to (5)).

Members' copies. Each member gets a copy of the bye-laws on admission (s.16) and a copy of the balance sheet or statement of accounts with the auditor's report at the annual general body meeting, if not supplied earlier (s.17).

Changing the memorandum and bye-laws later

A change to the objectives of the society needs a special resolution. An alteration of the memorandum is not valid until it is registered under the Act, and the Registrar has thirty days from receiving the resolution to register and certify it if it is not contrary to the Act (s.8(1), (3) and (4)). Bye-laws can be altered by an ordinary resolution passed by not less than half of the members present and voting, subject to the Act and the memorandum. Every alteration is sent to the Registrar, who takes it on record if it is not contrary to the Act (s.8(2) and (5)).

What to do now

• Before filing: confirm seven adult signatories, two adult witnesses, a committee of at least three, and a name that clears s.6 (checked against your district's existing societies and the barred words).
• Filing: file with the Registrar of the district of your registered office, with the notified fee (s.4(1), s.7(1)).
• If nothing happens: the sixty-day deemed registration rule in s.7(4) applies only to an application that complies with every provision of the Act, and a refusal can be appealed within sixty days of communication (s.7(3)).
• After registration: notify the registered office within twenty-eight days (s.10(1)); file the first committee register within fourteen days of election (s.14(3)(i)); file the annual list within fifteen days of each general body meeting (s.9).
• Consequence of missing these: the Act text we reviewed names no penalty for late filings. Do not read that as permission to file late; confirm local practice with the district office.

Have a CA review your facts before you act or file.

FAQ

How do I register a society in Andhra Pradesh?

Seven or more persons with a qualifying object file with the district Registrar a memorandum (name, aims and objects, committee members' names, addresses and occupations) and the bye-laws, with the notified fee. Seven adult members sign the memorandum before two adult witnesses, and the same signatories sign the bye-laws (ss.3, 4 and 7, Andhra Pradesh Societies Registration Act 2001).

How do I register a society in Telangana?

The same way, under the Telangana Act: seven or more persons, the district Registrar, a memorandum with name, aims and committee details, and bye-laws signed by the memorandum's signatories (ss.3, 4 and 7, Telangana Societies Registration Act 2001).

How many members are needed to form a society?

Seven or more persons (s.3(1), both Acts). The committee must have at least three members of the society (s.14(1)).

Can a firm be a member of a society?

No. A society of which a firm or an unincorporated association is a member cannot be registered. A partner or association member can join in his individual capacity, and a body corporate can be a member (s.2(h) and s.3(2) and (3), both Acts).

What must society bye-laws contain?

Identity and address, activities, membership rules, general body meetings and quorum, office bearers and their appointment and removal, finances and auditors, and internal matters including disputes and dissolution (s.5, both Acts).

Which names are not allowed?

Names that contravene the Emblems and Names (Prevention of Improper Use) Act 1950, and names identical or deceptively similar to an existing society in the same district unless that society is being dissolved and consents in writing. Words such as "Co-operative", "Land Development", "Reserve Bank", "Union", "State", "Municipal" and "Chartered" need the Government's previous written sanction (s.6, both Acts).

How long does registration take?

The Acts give no processing time as such. If a compliant application is not disposed of within sixty days, the society is deemed registered and the Registrar must issue a certificate (s.7(4), both Acts).

What is the registration fee?

The fee is the one notified under section 29 of each Act. The Andhra Pradesh Registration Department's undated FAQ gives ₹200. Confirm the current fee for your state with the district Registrar.

Is the Societies Registration Act 1860 still in force in Andhra Pradesh and Telangana?

Not for the Andhra area. The 2001 Acts repealed it in its application there, together with the Telangana Area Act of 1350 Fasli. Things done under the old laws are treated as done under the 2001 Act (s.32, both Acts).

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See Also

• How to Register a Public Limited Company in India: Members, Directors, Capital Raising and Compliance
• Shops and establishments registration for a Vizag office: what the AP Act asks of you
• Hiring your first employees in Hyderabad: Telangana professional tax registration and deduction