A Multi-State Credit Co-operative Society is a financial cooperative formed to serve members across multiple states in India, with a primary focus on promoting savings and providing credit at affordable rates. Registered under the Multi-State Co-operative Societies Act, 2002, these societies operate as mutual organizations, offering financial products like savings, fixed deposits, and loans exclusively to their members. Given the regulatory and operational complexities, setting up a multi-state co-operative society requires careful planning and expert guidance.
Here’s a general outline of the process for registering a Multi-State Credit Co-Operative Society with Ractax:
1. Eligibility Criteria
Minimum Membership: At least 50 members from two or more states are required.
Objects: The main objects of the society should be related to providing credit facilities to its members.
Legal Structure: The society must function in accordance with the co-operative principles and the Multi-State Co-operative Societies Act.
Management: The society must have a governing body or board that manages the affairs, elected from the members.
2. Documents Required
Application Form: Completed registration form available from the Ractax or relevant authorities.
List of Members: Details of at least 50 members from different states.
Memorandum of Association (MOA) and Rules: Detailing the objectives, powers, and the structure of the society.
Proof of Address: For the society’s registered office.
Identity Proof: KYC documents for all members and key office bearers.
Resolution of Formation: A resolution passed by the founding members about the formation of the society.
3. Steps for Registration
Preparation of Documents: Ensure all required documents are collected, including the MOA, Rules, and membership list.
Application Submission: Submit the application along with the documents to the Registrar of Multi-State Co-operative Societies or Ractax.
Verification: The authorities will verify the documents submitted.
Approval: Once the application is approved, the Registrar will issue a Certificate of Registration for the society.
Operationalization: After registration, the society can start its operations across the states where it intends to provide services.
4. Benefits
Access to Funding: Can avail financial support from banks and other institutions.
Operational Across States: Can operate in multiple states, offering more growth potential.
Government Support: Eligible for government schemes and subsidies aimed at promoting co-operatives.
5. Compliance and Regulations
MSCCS must comply with both the Multi-State Co-operative Societies Act and regulations laid out by the Registrar of Multi-State Co-operative Societies.
Regular audits, financial reporting, and adherence to cooperative principles are essential for maintaining the legal standing of the society.
Ractax typically provides end-to-end services for setting up and registering such societies, including document preparation, application filing, and post-registration compliance support.
This registration process enables the society to operate with legal backing across multiple states, providing members with financial benefits and cooperative services.