Formation of Society

Formation of Society can be defined as a company or association of persons united together by mutual consent to deliberate, determine and act jointly for some common purpose.

In India, an institution of non-commercial nature for promotion of charitable activities like education, art, religion, culture etc. has to register itself:
As a public charitable trust, or
Under Societies Registration Act,1860, or
Under Section 25 of the Companies Act ,1956.

The Societies Registration Act, 1860 is an act for the registration of literary, scientific and charitable societies. The object of the Act as stated in the preamble is to make provision for improving the legal conditions of Societies established for promotion of literature, science, fine arts, for diffusion of useful knowledge or for charitable purposes.

Such an association has to be registered since it gives the society a legal status and is also essential for:
Opening bank accounts.
Obtaining registration and approvals under Income tax act.
Lawful vesting of properties of societies.
Recognition to the society at all forums and before all authorities.

The Act is applicable to all societies formed either prior to commencement of the Act or formed after commencement of the Act so as to provide them with a legal status for carrying out the purpose for which they have been formed.