Society Registration in Hyderabad – Cost, Process, Member Rules & Legal FAQs

If you’re looking to form a charitable, educational, cultural, or social group, then getting a society registration in Hyderabad is the first step to legal recognition. A registered society gains credibility, legal rights, eligibility for grants, and tax exemptions. In this FAQ-based guide, we’ll cover how to register a society, minimum member requirements, benefits, legal implications, renewal process, and GST applicability.

📌 Section 1: How to Register a Society in Hyderabad?

FAQs:

1. Can a society register for GST?
   Yes, if the society’s turnover exceeds ₹20 lakhs, GST registration is mandatory.

2. Which type of societies can be registered?
   Societies for education, culture, sports, religion, research, charity, and social welfare can be registered under the Societies Registration Act.

3. Is society taxable?
   Societies are taxable unless exempted under sections like 12A and 80G of the Income Tax Act.

4. What is the GST limit for society?
   ₹20 lakh for services and ₹40 lakh for goods — same as regular businesses.

5. Is GST free to register?
   Yes, GST registration is free via the official GST portal.

6. What are the four main types of societies?
   Educational, Charitable, Religious, and Cultural Societies.

7. Can we convert society into trust?
   No direct conversion is allowed. You must dissolve and register a new entity.

8. What is the purpose of society registration?
   Legal identity, eligibility for tax benefits, ability to sue/be sued, open bank accounts, and receive donations/grants.

9. How much does it cost to register a society in India?
   Typically ₹2,000–₹10,000 including government and professional fees.

10. How do I open a society account?
    After registration, open a bank account in the society’s name with PAN and registration documents.

11. Who is registrar of societies?
    The Registrar of Societies is a state-level authority under the Registration Department.

12. How do I register my society in income tax?
    Apply for PAN and 12A/80G via the Income Tax Department for tax exemption.

📌 Section 2: What is the Minimum Member for Society Registration?

FAQs:

1. Can family members be members of society?
   No, generally family members are not allowed to be all members. At least 7 unrelated individuals are recommended.

2. How many members do you need for a society?
   Minimum 7 members are required to form a society.

3. What is the difference between a trust and a society?
   A trust is governed by trustees and Trust Act; society by members and Societies Registration Act with more democratic structure.

4. What is the minimum number of members in a society?
   Seven individuals are required.

5. Are children members of society?
   No, only adults (18 years+) can be members.

6. Who comes under society?
   Founding members, president, secretary, treasurer, and general members.

7. How to create a new society?
   Draft Memorandum of Association and Rules & Regulations, file with the Registrar of Societies.

8. What is the difference between society and association?
   An association can be informal; society is legally recognized under an Act.

9. How many people are needed to create a society?
   Minimum of 7, with clear designation of governing body roles.

10. Which is better, NGO or trust?
    Depends on purpose. Trusts are easy to manage; societies are better for democratic involvement.

11. Can society accept donations?
    Yes, registered societies can receive domestic and foreign donations (FCRA compliance needed).

12. What is the minimum number of members in a trust?
    Usually 2 trustees (no maximum limit), based on the state trust act.

📌 Section 3: What Happens If Society Is Not Renewed?

FAQs:

1. What happens when society falls?
   It loses legal recognition, bank access, and cannot legally operate.

2. Can we cancel society registration?
   Yes, via formal resolution and notice to Registrar.

3. What is Section 5 of the Registration Act?
   It relates to mandatory renewal or registration of amendments.

4. How long do societies last?
   Indefinitely — until legally dissolved or deregistered.

5. What falls under society?
   Non-profit organizations including clubs, cultural groups, housing welfare, etc.

6. How soon will society collapse?
   If not renewed or mismanaged, it may lose its legal status in 5 years or less.

7. What are the benefits of registering society?
   Legal status, tax exemption eligibility, bank account opening, trust of donors, grants eligibility.

8. How do you close a society?
   Through a dissolution resolution by 3/5th members and legal notice.

9. Can a registered society be sued?
   Yes, just like a legal person — it can sue or be sued.

10. In which case is registration not compulsory?
    For informal or temporary groups — but not recommended if financial transactions are involved.

11. What is the penalty for registration act?
    Penalties include fines and cancellation for non-compliance, misuse, or misrepresentation.

12. Is will registration mandatory?
    For personal wills, it is optional; society registration is mandatory for legal operation.

📌 Section 4: Why is Society Registration Needed?

FAQs:

1. What is the legal status of a society?
   A registered society is a legal entity that can own property, open bank accounts, and enter contracts.

2. Why is registration important?
   It provides recognition, transparency, and legal standing in court or funding applications.

3. How many maximum members can a society have?
   There is no fixed upper limit, but structure and bylaws should define member cap (usually up to 21 or more).