Before discussing in detail, we must first know what is Cooperative Society?

According to the general meaning, Co-operative societies are voluntary associations started with the aim of service to members. Here we are about to discuss two different types of Cooperative Societies namely:

  • Cooperative Credit Society
  • Multi State Cooperative Society

Here we will be discussing the registration procedure of Cooperative Credit Societies.(For Multi State cooperative Societies –Refer  my next article).

Generally, it means, an association of persons working collectively to help their members and giving loans to the needy ones. As per the legal definition, under the provisions of Section 5(ccii) of Banking Regulation Act, 1949 (AACS), a cooperative credit society is defined as a cooperative society, “the primary object of which is to provide financial accommodation to its members and includes a cooperative land mortgage bank”. These are known as Resource Societies which are sub categorised into two:

  • Urban Credit Cooperative Society
  • Agricultural Credit Cooperative Society




Minimum Share Capital
1 Urban Credit Cooperative Society 50 200000
2 Agricultural Credit Cooperative Society 50 25000


These societies are formed to provide financial support to the members. The society accepts deposits from members and grants them loans at reasonable rates of interest in times of need.

These are formed to provide financial help to members through loans at low interest rates. They encourage saving habit among members.

Advantages of Cooperative Credit Society

  • Easy formation
  • Open membership
  • Democratic Control
  • Limited Liability
  • Elimination of Middleman’s Profit
  • Loans at low interest rates.
  • Enhances habit of savings.

Disadvantages of Cooperative Credit Society

  • Limited Capital
  • Problems in Management
  • Lack of Motivation
  • Lack of Cooperation

Basic Requirements for registration of a cooperative credit society

  1. Name and address of the society.
  2. Aims and objectives of the society.
  3. Names and addresses of members of the society.
  4. Share capital and its division.
  5. Mode of admitting new members.
  6. A copy of the bye laws of the society.

The required documents are to be filed with the Registrar of Societies. The Registrar scrutinises the documents; if these are as per requirements then the society’s name is entered in the register. A certificate of registration is also issued to the society. The society will become a corporate body from the date mentioned in the certificate.

Time limit

The application for registration shall be disposed of by the Registrar within a period of ninety days from the date of receipt thereof by him.

Registration Fees

A fee to be paid along with the prescribed form with the Registrar of Cooperative Society is Rs. 1250/-(General).