Any group of persons can form a cooperative society of their own if they so like to act jointly for the common benefit of each other. But that is not the legal way of formation the cooperative society. All societies must be formed under the Cooperative Societies Act, 1912 or under the relevant state cooperative laws.
For formation of a cooperative society at least 10 persons are required. They must have the common objective to serve each other by forming a society. They have to contribute capital in form of share capital and decide to take up any one or more activities. They form a managing committee from and among the members who looks after the management of the society and implements the decisions of the members. As our Constitution is wedded to a socialistic pattern of society, it is a part of the Government policy to promote and encourage establishment of cooperative societies.
Therefore, cooperative societies enjoy several benefits provided by the Government from time to time . But in order to avail those benefits the society must have to register under the Cooperative Societies Act. The procedure for registration are as follow :
Apply for registration of the association as cooperative society in a prescribed proforma available with the Registrar of Cooperative Societies with requisite information like -
(1) List of members, their individual addresses,
(2) Name and objectives of the society for which it has been formed,
(3) Collection of funds - share capital or loan fund with their utilization process,
(4) Office bearers as managing committee and their powers,
(5) Admission and retirement of members, and
(6) Bye-law of the society.
On fulfillment of all the above requirements the Registrar may issue a certificate of Registration in favour of that society, which elevates the status as Registered cooperative society or corporate body.