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Multistate Co-operative Registration

Multistate Co-operative Registration including Incorporation kit and share certificates.

What is Multi State Co-operative Society?


A Multi-State Cooperative Society (MSCS) is a cooperative society that operates in multiple states across India. Cooperative societies are organizations formed by individuals with common interests to pool their resources for mutual benefit. They are governed by the Cooperative Societies Act of the respective state in which they operate.

Multi-State Cooperative Societies are governed by the MSCS Act, 2002, which was enacted to facilitate the incorporation, regulation, and proper management of cooperative societies operating in more than one state. These societies can engage in various activities such as agriculture, industry, handicrafts, and services.

The Multi-State Co-operative Societies Act, 2002 (MSCS Act 2002)

The Multi-State Co-operative Societies Act, 2002 (MSCS Act 2002) is an Indian law enacted to regulate the operation and management of cooperative societies that operate in more than one state. It provides a legal framework for their registration, functioning, and governance. The Act ensures that such societies are able to carry out their activities effectively while adhering to standardized rules and regulations.

    Key Features of the MSCS Act, 2002

  • Scope: It applies to cooperative societies with operations spread across two or more states. Such societies may involve sectors like agriculture, credit, housing, marketing, consumer services, and more.
  • Registration: A multi-state cooperative society must register under the MSCS Act, 2002. At least 50 members from two or more states are required for registration.
  • Objectives: To promote the economic and social interests of members through mutual assistance. To operate democratically and profitably while maintaining transparency.
  • Governance: The society must have a board of directors elected by the members. The board is responsible for the overall management and decision-making.
  • Regulatory Authority: The Central Registrar of Cooperative Societies is the primary regulatory authority. The registrar oversees registration, disputes, and compliance under the Act.
  • Rights of Members: Members have equal voting rights (one member, one vote) regardless of their contribution or shareholding. They are entitled to share in the society's profits and participate in its activities.
  • Financial Matters: Societies must maintain proper books of accounts and undergo regular audits. Surplus funds can be distributed as dividends among members or reinvested for the society’s growth.
  • Dispute Resolution: Disputes within the society or between members and the management can be referred to arbitration or resolved under the Act.
  • Winding Up: The society may be wound up voluntarily or by an order of the Central Registrar in case of insolvency or non-compliance with the Act.
  • Penalties for Non-Compliance: The Act imposes penalties for non-compliance, such as failure to maintain records or violating governance rules.

Types of Multistate Cooperative Society

Credit Cooperative Societies

Provide affordable credit and financial support to members, fostering financial inclusion and independence.

Cooperative Housing Societies

Facilitate affordable housing and shared community living for members, ensuring cost-effective property management.

Farmer's Cooperative Societies

Empower farmers by offering resources, tools, and collective support for agricultural productivity.

Producer's Cooperative Societies

Support producers by ensuring fair pricing, better marketing, and collective resource utilization.

Consumer's Cooperative Societies

Ensure members have access to quality goods at reasonable prices through collective buying power.

Marketing Cooperative Societies

Foster efficient marketing networks for members to promote and distribute goods effectively.

Procedure to Register Multistate Cooperative

  • In the case of a multi-state cooperative society where all members are individuals, by at least fifty persons from each of the states concerned.
  • In case the members are cooperative societies, by duly authorized representatives on behalf of at least five such societies, with at least two societies registered in different states.
  • In case the members are multi-state cooperative societies and other cooperative societies, by duly authorized representatives of each society; however, at least two societies must be registered in different states.
  • If the members are a mix of cooperative societies or multi-state cooperative societies and individuals, by:
    • At least fifty individuals from each of the two or more states.
    • One cooperative society from two or more states, or one multi-state cooperative society.

Multistate Cooperative Society Registration Fees

  • The registration fee depends on the paid-up share capital of the society at the time of registration.
  • The fee for registration is as follows:
    • If the paid-up share capital is less than Rs. 10 lakhs, the fee is Rs. 5000.
    • If the paid-up share capital is between Rs. 10 lakhs and Rs. 50 lakhs, the fee is Rs. 10,000.
    • If the paid-up share capital is between Rs. 50 lakhs and Rs. 1 crore, the fee is Rs. 15,000.
    • If the paid-up share capital is greater than Rs. 1 crore, the fee is Rs. 20,000.
  • In addition to the registration fee, there is an annual fee that needs to be paid to the Central Registrar to maintain the society's status.
  • The registration fee must be paid at the time of submitting the application for registration.

Documents Required for Cooperative Society Registration

  • Application Form (signed by the members) as per the prescribed format.
  • Proof of Identity and Address for all the members, such as:
    • Aadhar Card
    • Voter ID
    • Passport
    • Driving License
  • Address Proof of the registered office of the society (e.g., utility bill or lease agreement).
  • A list of proposed members (minimum 50 members from at least two different states).
  • A copy of the society's bylaws, outlining the objectives, rules, and regulations governing the operations of the society.
  • A detailed description of the business activity the society intends to carry out.
  • A certified copy of the Resolution passed by the Board of Directors or General Body for forming the cooperative society.
  • Payment of registration fees (as per the applicable fee structure).
  • Any additional documents as required by the Central Registrar of Cooperative Societies.
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How To Apply To Register A Multi-State Cooperative Society

The registration of a Multi-State Cooperative Society (MSCS) in India involves a systematic procedure. Below are the steps to follow to apply for registration:

Step 1: Prepare the Required Documents

Before applying for registration, gather essential documents such as the proposed society's bye-laws, the list of proposed members, their consent, and a statement of assets and liabilities.

Step 2: Submit the Application Form

Submit the application form for MSCS registration to the Registrar of Cooperative Societies, either online or at the designated office, along with the necessary documents and fees.

Step 3: Review and Approval

The Registrar will review your application and verify the submitted documents. If everything is in order, your MSCS registration will be approved.

Step 4: Receive Registration Certificate

Once approved, you will receive a certificate of registration, and your Multi-State Cooperative Society will be officially recognized.

Frequently Asked Questions (FAQs)


What is a multistate cooperative society?

A multistate cooperative society is a cooperative registered under the Multi-State Cooperative Societies Act, 2002. It operates in multiple states, focusing on providing financial or other services to its members.

What are the types of multistate cooperative societies?

These include credit societies, housing societies, consumer societies, producer societies, and marketing societies, among others, depending on their objectives and services.

Who regulates multistate cooperative societies?

Multistate cooperative societies are regulated by the Central Registrar of Cooperative Societies, under the Ministry of Cooperation, ensuring adherence to the laws and compliance standards.

What are the benefits of registering as a multistate cooperative society?

Benefits include interstate operational freedom, legal recognition, tax exemptions, and access to broader markets for members' goods and services.

How do I register a multistate cooperative society?

Submit an application to the Central Registrar with required documents such as the proposed bylaws, member details, and a feasibility report. The Registrar evaluates the application before approval.

Can a multistate cooperative society accept deposits?

Yes, some types of multistate cooperative societies, like credit societies, can accept deposits from their members under specified conditions and regulatory guidelines.

What compliance requirements must a multistate cooperative society meet?

These include annual audits, submission of financial statements, maintaining member registers, adhering to bylaws, and following central regulatory norms.