Credit Co-Operative Society

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Credit Co-operative society

A Credit or Multi-state Co-operative Society is basically a society that is registered or deemed to be registered under the “Multi-State Co-operative Societies Act, 2002. Any application for the registration of a multi-state cooperative society, of which all the members are individuals, should be signed by at least fifty persons from each of the states concerned. In the case of a society of which the members are cooperative societies, it should be signed by duly authorized representations of at least five such societies registered in different states (Sec.6). Their main objects shall be serving the interests of members in more than one state and their by-laws shall provide for social and economic betterment of their members through self-help and mutual aid in accordance with co-operative principles (Sec. 7).

Otherwise, they are ineligible for registration. A multi-state co-operative society is a body corporate with limited liability (Sec.9). In order to ensure financial discipline, extensive provisions have been enacted. No part of the fund other than net profit shall be distributed among members (Sec.62). Investment of society’s fund only in recognized securities is permissible (Sec.64). Contribution to political parties or loans to non-members or borrowing from external sources are prohibited. Annual auditing by recognized auditors is mandatory (Sec.65). Central Government may direct for special audit if it is of the opinion that the society’s affairs are not being managed in accordance with the co-operative principles or prudent commercial practices (Sec.77).

A Multi-state co-operative society can accept deposits not more than the ten times of the paid-up share capital and net reserves in a financial year. And a multi-State co-operative society can issue non-convertible debentures to the extent of twenty-five per cent of its paid-up share capital and can used to raise fund thru allotment of equity shares.

There are various forms of societies are available

1. Thrift and Urban Credit Cooperative Societies;

2. Agricultural Credit Co-operative Society;

3. Agricultural Non-Credit Co-operative Society;

4. Multi-purpose Co-operative Society;

5. Cooperative Banks;

6. Industrial Producers Co-operative Society;

7. Weavers Co-operative Society;

8. Labour and Construction Cooperative Society;

9. Industrial Processing Co-operative Society;

10. Motor Transport Co-operative Society;

11. Industrial Service Co-operative Society;

12. Housing Finance Co-operative Society;

13. Consumers Co-operative Store;

14. Co-operative House Building Society;

15. Co-operative Group-Housing Society;

16. Co-operative Processing Society;

17. Marketing Co-operative Society;

18. Cooperative Union;

19. Cooperative Federation;

20. Cooperative Industrial Estate.

21. New Multipurpose Co-operative Society

Our services for establish your Credit Co-operative Society:

Company Name reservation.
Proposed name of your multi-state cooperative society.
Trademark search for business.
Drafting MOA & AOA & Filling.
MCA Government Fees & Filling.
Corporate Identification Number (CIN).
Model Bye-Laws
A certificate from the Bank stating the credit balance in favor of the proposed multi-state co-operative society.
A detailed plan that how co-operative society will be beneficial for the social and economic betterment of its members and community as a whole.
PAN No. of company.
NOC from the State
Guaranteed licensing
buy-laws

Required documents and criteria:

Minimum 50 members.
Minimum share capital to be raised Rs.2,00,000/-
Copy of pre-registration meetings resolution (about board, Capital, members, operations, i.e.).Model Bye Laws (four copies)
Intensive inquiry Performa
List of Promoter members
Copy of promotional meetings resolution, wherein resolving name of the Society, value of share money, admission fees, liabilities, total number of members of managing committee, annual submission fees etc.
Certified copy of Incorporation Certificate.
Certified copy of Memorandum of Association of the Company.
Intensive inquiry letters for NOC.
List of Promoter members.
Head office address to be registered.
Certified copy of Article of Association of the Company.
Banker’s Report.
PAN No. of company
NOC from the State
Guaranteed licensing
Buy-laws
Auditors report about receipt of minimum net owned fund.

A certificate of Chartered Accountant regarding details of group/associate/subsidiary/holding companies along with details of investments in other NBFCs as shown in the Performa Balance Sheet.

In Delhi, the present norms for formation of different kinds of societies are as under :-

*Sl. No.*	*Category of Society*	*No. of minimum membership*	*Minimum share capital to be raised (in Rs.)*	*Area of operation*
1.	Urban Bank	3000	4 crores	N.C.T. of Delhi
2.	Urban Credit Societies
	(a) Salary Earner T/C Society	50	50000/-	Office/Establishment
	(b) Urban credit (General)	50	Rs. Two Lakh	N.C.T. of Delhi
3.	Consumer Store	100	Rs. One Lakh	District
4.	Industrial (P) Cooperative Society	15	Rs. One Lakh	District
	Handloom Coop. Industrial Society	15	25000/-	District
	Leather Coop. Industrial Society	15	-do-	District
	Women Coop. Industrial Society	15	-do-	District
	Other weaker sections society	15	-do-	District
5.	Industrial Services society	15	50000/-	District
6.	Group Housing/ House Building Society	60	60000/-	N.C.T. of Delhi
7.	Agriculture service/credit society	50	25000/-	Rural villages
8.	Dairy, poultry, piggery society	15	25000/-	Rural villages
9.	Transport society	15	1,50,000/-	N.C.T. of Delhi
10.	Labour	15	50,000/-	N.C.T. of Delhi
11.	Security Service Society, tourism society, Health Care, Water Harvesting society, Environment Protection Society	15	50000/-	N.C.T. of Delhi
12.	Integrated Development Society	15	50000/-	N.C.T. of Delhi
13.	Multi-purpose Society for slum dwellers	30	3000/-	N.C.T. of Delhi
Source: Notification No.: F.37/(Policy)/RCS/142-150 dt. 19-10-2007