Myself & my friends wanted to start a credit cooperative society ltd in Bangalore city.
Sir please let me know the following
(1) Minimum & Maximum founding members (directors) 7, 13 or 15 people.
(2) Minimum & Maximum amount to be invested to start the society
(3) Where to get the bye law
(4) How many share holders are required initially to start & what should be the share amount
(5) To register as a credit cooperative society ltd, how many days will it take to process.
(6) What types of loan can be issued by the society
(7) How much fees to be paid for the registration of the society
(8) What is the interest we should charge for the loan we give to the members
(9) Should we conduct society election every 3 yrs once.
(10) Shall we start other branches after sometime.
I C Naik
It is good that more people are attracted to cooperative sector.
The questions you have raised are simple procedural issues and answers can be found easily from cooperative society Act and Rules prescribed thereunder.
http://sahakara.kar.gov.in/Doc/KCAct.pdf
Most important is the proviso to Section 4 of the Act exracted below:
Co-operative Societies Act 1959: (KAR. ACT 11) provides:
Subject to the provisions of this Act, a co-operative society which has as its objects the promotion of the economic interests or general welfare of its members, or of the public, in accordance with coperative principles, or a co-operative society established with the object of facilitating the operations of such a society, may be registered under this Act:
Provided that no co-operative society shall be registered if it is likely to be economically unsound, or the registration of which may have an adverse effect on development of the co-operative movement. (Section 4. Societies which may be registered)
I suggest that before getting in to details prepare a business plan which will satisfy the Registrar that the credit society being floated by you and your friends (at least 10) shall be economically sound. Show this plan to a Senior Officer in the nearest Office of the Registrar Cooperative Societies to get informal Ok to your plan.
