Society Registration for schools: An overview

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A society is an aggregate of different types of people connected to each other with the rope of same cultural expectations and geographical territories. A society thrives on continuous development and better opportunities. For a society to function better, certain rules and regulations are formulated by the law. The main objective of establishment of a society is the promotion of knowledge in various fields like fine arts, science, literature etc. It is important that such knowledge is diffused through the society which is why, it is mandatory to have legal provisions which can provide a way to promote such ideas.

Society Registration Act

For the diffusion of such knowledge, Society Registration Act was formed in 1860. This act aims to provide legal provisions for the betterment of society registration processes. The main purpose of this act is the promotion of knowledge related to various fields like science, literature, fine arts, music etc. This also aims to encourage people by providing charitable support to those who aren’t financially able. It also works in the direction of betterment and development of museums and libraries. Basically, Society registration act was formulated to impart and diffuse knowledge of different fields into the society.

Registration of school or an educational trust

Society Registration for schools

A school or any educational trust is registered under Society Registration Act. The main objective of the registration is providing service to the community by imparting education and knowledge to each and every member of the society. Whenever an educational trust is registered, it is mandatory to put the society first. It should not be seen as a measure of gaining profits by using it as a personal business.

Importance of society registration of schools

Registration has many benefits as it gives an upper hand to the registrar in the legal matters. Some of its benefits are:

  • An official legal status is awarded after the process of registration is completed. This helps the registrar to take legal actions against the malpractices
  • Registrations gives right to make financial transactions by opening a demand deposit account with a bank. The right to make transactions lies with the concerned person and no legal permissions are required
  • When registration is done, it provides the registrar a sense of recognition amongst all kind of authorities
  • Society registration of schools is also beneficial financially as the Income Tax Appellate Tribunal allows exemption of taxes to such societies who works for the betterment of and imparting education through schools
  • An option of statutory vesting of wealth is also present which is determined entirely by the people involved in registration

A to-do list for schools registered under Society Registration Act

All the schools or educational trusts that have been registered under the Society Registration Act, 1860 possesses certain aims and objectives, which are designed for the effective and efficient functioning of the schools. Some of them are:

  • To start with, they must be well equipped and must provide basic facilities like public libraries, hostels and residential accommodation, eateries etc
  • At regular intervals, certain provisions should be made to create educational platforms which promote diffusion of various types of knowledge like science, fine arts, political education etc. into the society
  • Social and cultural activities must be promoted to create an environment where maximum participation of the society is witnessed
  • Basic amenities like clothes, medicines, sanitary products etc. should be distributed to needy people free of cost to improving their sense of living
  • Special provisions should be made for physically disabled and handicapped people like establishment of institutions of different fields of knowledge.
  • Lastly. All the money should be used for the betterment of the people. No self profits should be kept in mind.

Documents required for registering an educational trust or school 

Before enrolling for registration, it should be made sure that all the documents are legitimate and no felony should be committed while the registration process. The documents required are:

  • An affidavit which states the all the people related to the school or educational trust are unrelated
  • Property papers of the educational trust or school
  • Identification proof (Aadhar card/ Voting ID/ Pan card/ Driving Licence etc.) and address proof (Rent agreement/ Electricity Bill/ water bill etc )  of all the associated members
  • A letter of application which includes all the aims and objectives related to the school or educational trust signed by all the associated members
  • A document or article of association which should include all the rules and regulations applied by the educational trust for a hassle free functioning of the organization. This should also contain all the important steps to be taken for accomplishment of different the goals like appointment of director, rights of the employees, handling of financial issues, conduction of shareholders’ meetings etc.

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Things to take into account before registering school or educational trust

There are certain points to keep in mind before proceeding with the registration of schools or educational trusts to ensure a smooth and hassle free registration process. Some of these points are as follows:

  • The Memorandum of Association should be carefully and attentively crafted. It should accurately include the name, aims and objectives of the educational trust, specific information like ID proof, Address proof, etc. related to the members associated with the school or educational trust
  • While naming the school or the educational trust, the concerned people should be mindful of the fact that certain names like that belonging to national heroes should not be considered as it is prohibited by the Emblems Act of 1950. The act also forbids the use of official seals, emblems etc. without the authorization of concerned authorities
  • Avoid using a popular name as duplication of names might be considered as an act to deceive the society
  • All the documents should be verified by at least three members associated with the school or educational trust.

Body of people associated with school or educational trust

There are many people associated with the educational trust which ensure that all the functions are being performed effectively and efficiently. These people ensure that annual meetings are being organised where all the objectives of the year are being discussed. Important tasks like passing of annual budget and piloting of an audit are done by this body of people. The people which are the decision makers are:

  • Chairman – The head of the governing body of school or the educational trust, supervises all the meetings
  • Vice chairman – Holds the power to supervise in the absence of the chairman, holds same roles and responsibilities as the chairman
  • Secretary –  Holds the power to organise meetings, has all the records related to the meetings, has the authority to sign on official papers on behalf of the educational trust
  • Treasurer– Keeper of the financial records related to the school or educational trust.

Conclusion

Educational institutions hold the power to bring about a change in the society for its betterment. These non-profit organizations are backed by the central and state governments for the welfare of the society. Registration of schools or educational trusts gives an upper hand as many people make donations and many charitable trusts help educational institutions to create a better environment for people. As the needs of the society is increasing, educational trusts are proving to be a big help in establishing facilities which cater to the needs of the society.

For more information, reach out Legal Window and get professional advice at each and every step.

CA Pulkit Goyal, is a fellow member of the Institute of Chartered Accountants of India (ICAI) having 10 years of experience in the profession of Chartered Accountancy and thorough understanding of the corporate as well as non-corporate entities taxation system. His core area of practice is foreign company taxation which has given him an edge in analytical thinking & executing assignments with a unique perspective. He has worked as a consultant with professionally managed corporates. He has experience of writing in different areas and keep at pace with the latest changes and analyze the different implications of various provisions of the act.

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