The registration of a society legalizes it. Further, it is after the registration, that the society becomes entitled to obtain tax registrations and approvals, and get recognition before all statutory and non-statutory authorities and platforms A few prominent consequences of society registration are as follows:
- All members are equally bound to the society
- Society becomes a separate legal entity / person
- A society can own property in its name
- A society can sue third parties and challenge them in a court of law
An unregistered firm neither exists as a legal entity nor as a legal person. In an unregistered trust, all trustees incharge have legal statuses but the trust itself does not. Therefore, an unregistered trust cannot claim tax benefits, sue third parties, or hold property in its own name.