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Tax4india ›› Indian Law ›› Corporate Law ›› Society Act
Society Act
Purposes For Which A society Can Be Formed
A society can be formed for the promotion of literature, science or the fine arts or the diffusion of useful knowledge/political education or for charitable purposes. Section 20 of the principal Act specifies the following purposes for which societies may be registered under the Act:
- Grant of charitable assistance
- Creation of Military orphan funds
- Societies established at the General Presidencies of India
- Promotion of
- Science,
- Literature,
- Fine Arts,
- Instructions or diffusion of useful knowledge,
- Diffusion of political education,
- Foundation or maintenance of libraries or reading rooms,
- Public museum and galleries of paintings,
- Works of Act,
- Collections of natural history,
- Mechanical and philosophical inventions,
- Instruments,
- Designs
Formation For Profit Motive Prohibited
For a society registered under Societies Registration Act, 1860 or under the Section 25 of Companies Act, profit motive for personal use is disentitled. Whatever profit is made through the working of such a society, is accountable for, and is necessary to put back the profit in the working of such a society. The Companies Act under section 25 also prohibits any payment of any dividends of its members as part of profit earned.
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