• A society, which has as its object of the promotion of the economic interests or general welfare of its members, or of the public, in accordance will co-operative principles, or a society established with the object of facilitating the operations of any such society may be registered under the Act

• A co-operative society is the perfect fit for a residential building as flat-owners have common needs like water connection, watchmen, e.t.c and interests like maintenance of common areas, such as the terrace and compound. If you've purchased a flat in a new building, it would probably be best if you took interest in forming a society. The builder may also be statutorily obliged to form a society. For example, under Maharashtra Flat Ownership Act, 1963, a builder must form a society within four months of selling 60% of the flats.

Procedure for Registration

First general body meeting (before registration):

• In first meeting under Society's Model Bye-law 3(iii), the Chief Promoter (could be the builder) is selected by the promoters, who are members co-signing the registration application before the Registering Authority, under Bye-law 3(xii).

• In this meeting, necessary resolutions are passed like opening the account in a bank in the name of proposed society and for obtaining permission for reserving the name of the society. It is compulsory for SRA/ MHADA recognized societies, for the first meeting to be video-recorded.

Application for Registration

• The first step is to reserve the proposed name of the Society. Normally, a proposal for same shall be accompanied by the society resolutions and signatures of at least 10 Promoters who have attended the meeting.

• The registrar allows the name and grant permission to open a bank account. The Chief Promoter shall collect Share Capital, Entrance Fees from all the promoters and deposit the same in the branch of the bank permitted by the Registrar.

• Without prior approval of Registrar, the amount deposited cannot be withdrawn till the society is registered or its registration is refused.

• The Chief Promoter should submit registration proposal to the registering authority within a period of 3 months from the date of issue of Letter of Reservation in the name of the proposed society.