Multi-State Co-operative Society (MSCS)

1. What is a Multi-State Co-operative Society?

• A Multi-State Co-operative Society is a society that does not operate within a single state; instead, it functions in two or more states.
• It is registered under the Multi-State Co-operative Societies Act, 2002.
• While a State Co-operative Society is governed by the respective State Act, a Multi-State Co-operative Society comes under Central Government regulation.
• Once registered, it becomes a Body Corporate (a separate legal entity) with the power to:

2. Registration - How to Register a Multi-State Society?

Authority

• Registration is done by the Central Registrar of Cooperative Societies (CRCS) under the Ministry of Cooperation, Government of India.

Requirements

• There must be members from at least two different states.
• If all members are individuals, there must be at least 50 members from each state.
• The application must include:

Procedure

1. Submit the application to the Central Registrar in Form I.
2. The application must be processed within 3 months (with a possible extension).
3. If approved, a Registration Certificate will be issued.

3. Advantages of a Multi-State Co-operative Society

1. Wider operational area - can function in multiple states.
2. Higher legal credibility - since it is centrally regulated.
3. Limited liability - liability of members is restricted (as per Bye-laws).
4. Eligibility for Central Government schemes - such as duty drawbacks, subsidies, and other central assistance.
5. Continuity and stability - the society continues even if members change.
6. Mandatory audit - ensures transparency through Chartered Accountant audits.

4. Current Scenario in Kerala

• Multi-State Co-operative Society registration is valid and applicable in Kerala, since registration is done under Central law.
• The State Co-operative Registrar in Kerala deals only with State-level societies;
  Multi-State Societies are registered only by the Central Registrar in Delhi.
• Many MSCS institutions already operate in Kerala (e.g., multi-state urban co-op banks, credit societies, marketing co-operatives, etc.).
• Registration is not restricted-any group that meets the requirements can still register.

5. Summary

• MSCS = A co-operative society operating in two or more states.
• Registration = Through the Central Registrar, Ministry of Cooperation.
• Benefits = Larger operational area, central schemes, credibility, limited liability.
• In Kerala = MSCS registration is valid and currently available.

  For More Information & Support Please Contact :

  Dr. Muhammed Mustafa C T.
  Senior Tax Consultant, BRQ Associates
  ???? +91 96331 81898
  ???? brqassociates@gmail.com | ???? www.brqassociates.com