Difference Between Society & Cooperative Society

Societies and cooperative societies are two separate types of organizational structures with specialized functions. Despite the fact that both include gatherings of people for the same purpose, their guiding ideas, administrative schemes, and goals are dissimilar. In this essay, we examine the key distinctions between a society and a cooperative society, emphasizing their unique characteristics, purposes, advantages, and the importance of Society Registration in formalizing their legal status.

Table Of Content

What is Society & Cooperative Society? 

Society:

A society is a union of individuals united by mutual consent to consider, determine and cooperate for everyday purposes. Societies are characterized by models of connections (social relations) between individuals who share a unique culture and institutions.

A given society may be described as the total of such relationships among its constituent members. Societies are usually registered to promote charitable activities such as education, health, environment, arts, religion, culture, music, sports, etc.

Cooperative Society:

Cooperative societies have a distinct feature of collective ownership and democratic control. Members jointly own the organization and have equal voting rights, regardless of their financial contributions. This democratic structure ensures that decisions are made collectively, promoting a sense of inclusivity and shared responsibility.

Difference Between Society & Cooperative Society

Society & Cooperative Society both are different from each other. Following table will help you understand the vivid difference between society & Cooperative Society.

Basis	Society	Cooperative Society
Purpose	Social, Cultural, Charitable or recreational purposes	Economic cooperation and mutual benefits
Ownership	Individual or collective ownership of property & resources	Collective Ownership and democratic control by members
Structure	Typically informal & loosely organized	Structure with specific governance & membership regulations.
Membership	Open to various groups and individual	Members usually restricted to those who use the service or contribute to the society
Decision Making	Usually not very restricted, decision made by a few individual	Democratic decision-making process involving all members
Profit Distribution	No Profit distributed among members	Profits may be distributed among all the members according to their contribution
Legal Status	May or may not be registered as a legal entity	Registered under cooperative laws, recognized as a separate legal entity
Focus on Economics	Not primarily focused on economic activities	Economic goals and sustainability are important.
Social Impact	May have social impact but not the primary focus	Often emphasizes social welfare and community development
Examples	Cultural societies, hobby groups, charity organizations, etc.	Agricultural cooperatives, credit unions, worker cooperatives, etc.

**It's important to note that the differences between these two types of societies can vary depending on the specific legal and regulatory frameworks of different countries.

Documents Required For Society & Cooperative Society Registration 

Documents for Society Registration:

List of Documents required under Society Registration are as follows: 

Documents for Cooperative Society Registration:

List of Documents required under Cooperative Society Registration are as follows: 

Process Of Society & Cooperative Society Registration 

Process Of Society Registration:

• Documentation: 

The initial step is to finish the paperwork for registering a society. Remember that incomplete or inaccurate documentation may result in the denial of your application.

• Unique Name: 

Next step is to select a name for your society. Selecting a unique name is a complex task. The name of the society should be memorable and express its founding objectives. 

• Drafting MoA: 

The constitution of the firm is represented by a Memorandum of Association (MoA). It is a legal document created during the process of  registering a society.

• Rules & Regulation:

The rules are intended for the management of the society's internal affairs, including the quorum for meetings and the duties of the president, secretary, and treasurer in their official capacities.

• Application For Registration Of Society:

An application is submitted to the Registrar of the Society along with the signed MOA, the Rules of the Society, the Affidavit Declarations, and the KYC papers of the Society's Members and Officials. 

• Issuance of Certificate of Society Registration: 

After considering the application, the registrar can approve it or may ask for more information, if needed. The process of society registration ends with the issuance of the Certificate of Registration to society & Society will be registered.

Process Of Cooperative Society Registration:

• Formation of Group: 

A group of individuals who share a common goal or objective come together to form a group. In a Cooperative Society minimum 10 members are required. 

• Selecting Unique Name:

The group must select a unique and appropriate name of their cooperative society, which is not similar to any other organization. The name should reflect the nature and objective of a society. 

• Drafting a Rules & Regulation:

The group needs to draft rules and regulations of a society that will govern the smooth functioning of the society. 

• Application Submission:

The group needs to submit an application for registration to the designated government authority responsible for cooperative society registration. 

• Verification: 

The government authority reviews the application and supporting documents for verification of the society. 

• Certificate:

If the application is approved then the government will issue the certificate of registration.

• Bank Account & Operation: 

With the registration certificate, the Cooperative society can open a bank account with the society's name. 

• Compliance & Reporting: 

Registered cooperative societies are required to comply with the ongoing reporting and regulatory requirements outlined by the relevant government authority. 

Conclusion

societies and cooperative societies serve distinct purposes and operate under different principles. While societies focus on social, cultural, or charitable interests, cooperative societies prioritize economic cooperation and mutual benefit. The key differences lie in their ownership structure, governance model, membership criteria, and primary objectives.

For Society & Cooperative Society Registration consult with Professional Utilities Experts.