Multistate Cooperative Society Registration have always been an essential mechanism of mutual cooperation with the aim of self-help organizations of the economic activities of the partners.
An example of this concept is the multi-state co-operative society, which is an extension of co-operative societies operating in at least two states in India. These societies intervene in many areas such as agriculture, credit, housing and consumer sectors.
This guide provided by Blackie Legal Services India LLP is designed to explain the legal requirements, procedural steps and points to note for registering a multi-state co-operative society.
Multistate Cooperative Society Registration (MSCS) is a method of company formation for a cooperative body that has got the legal rights to create co-operative societies in different states of India. These are managed under the Multi-State Cooperative Societies Act 2002 and it is mandatory to get itself registered with the Central Registrar of Cooperative Societies.
MSCS strives for the promotion and organization of cooperatives as people’s institutions and non-governmental organizations on a voluntary basis on the principles of democracy in both organization and functioning, and coordinating their activities for the purpose of enhancing their economic and social condition.
Under The Multi-State Cooperative Societies Act, 2002, the Government of India has provided a legal framework for the registration, formation and regulations of multi cooperative societies. Key provisions include:
Formation and Registration (Chapter II): Explains how one can start a cooperative business organization and join people from different states.
Management and Functioning (Chapter IV): Explains how it relates to the management structure including the establishment of a board of directors more especially their roles and prerogative.
Amalgamation and Division (Chapter VII): Contains the procedures for mergers on societies or divisions or transfers of societies.
Dispute Resolution (Chapter IX): Explains how the matters arising from the conflict of the members or with outside parties are addressed.
The types of multiple cooperative societies are explained below in a good manner:
To register a multi state cooperative society, it is very important to fulfill some of the requirements given below:
1. Promoters
To form a multi-state cooperative society, the minimum of 50 promoters that society should be from at least two states. These promoters should be an individual, a cooperative society or a legal entity under the law.
2. Name Reservation
The proposed name of the Society should be unique i.e. it should not match with any existing name of the Society and also the name should be registered with the Central Registrar of Co-operative Societies.
3. Documentation
The following documents are essential for the registration process:
All documents and this application has to be forwarded to the central registrar of cooperative societies, ministry of agriculture and farmers welfare, government of India.
The period that is normally taken to register the multi-state cooperative society depends with the compliance and accuracy of the documents forwarded as well as the scrutiny exercise conducted by the Central Registrar.
In general, the process of getting the license could take roughly 3-4 months starting from the day of submission of the application. However, any differences or more questions can prolong this time.
The Multistate Cooperative Society Registration will have to comply with some ongoing compliance requirements which we have mentioned below:
A multi state co-operative society registration within India provides a strong legal framework to all those entities who ever wish to operate across the state boundaries of the country and promote economic and social well-being for all their members. Therefore by understanding the legal framework of multi-state cooperative society, fulfilling the minimum requirements and following the prescribed procedure, any promoter can successfully establish and maintain a multi-state cooperative society.
A Multi-State Cooperative Society (MSCS) in India allows for the formation of a cooperative society that operates across multiple states in the country. Blacktie offered by an MSCS can vary depending on its objectives, but here are some of the common types:
Financial Services:
Agricultural Services:
Consumer Services:
Industrial Services:
Service Cooperatives:
Important Considerations:
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