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Sports and Arts Club Registration:
A Sports
& Arts club is an association of people united by a common
interest or goal for improving extracurricular and social activities. There clubs devoted to hobbies and sports,
social activities clubs,
political and religious clubs,
and so forth. This club is of
any kind of group that has members who meet for a social, literary, or
political purpose, such as health clubs, recreational clubs, country clubs, entertainment
clubs, book clubs, women's club, kids club, students club, eco club, sports
clubs like cricket club, football club,
tennis club, batminten club etc. These clubs can be
formed either under the Societies Registration Act, 1860 or under the Companies
Act 2013. The objects of such clubs
should be in lawful purpose in consonance with the said Acts.
The
non-profit members sports and arts clubs is composed of by a
group of individuals who each contribute to the club's funds, which are used to
pay the expenses of conducting the sports club. This type of non-profit sports clubs
can be registered either under the respective state law of Societies
Registration Act or sec.8 of the Companies Act 2013. The profit of such sports
club whenever derived shall be applied solely towards the benefits of the club
or otherwise in the promotion of the objects of the club as set forth in the
Memorandum and Articles of Association and no portion thereof shall be paid by
way of dividend or bonous to the members of the club.
A proprietary
sports and arts club is one whose proprietor owns the property, funds
and conducts the sports club to attempt to make a profit. The members are
entitled to use the premises and property in exchange for the payment of
entrance fees and subscriptions to the proprietor as well as any additional
rights and privileges provided in their contractual agreement. This type of
proprietary sports clubs is to be registered under the Companies Act 2013 like
other profit oriented companies and the profits derived thereof shall be paid
by way of dividend or bonus to the members of the sports and arts club.
Documents
required under Society Act:
1)
A requisition letter in Form No.I
requesting registration of the sports and arts club.
2)
A Memorandum Specifying:-
(a) The name of the sports and arts club.
(b) The objects of the sports and arts club
and
(c) The names, addresses and
occupation of the members of the committee and
3)
The by – laws of the sports club, which must reflects the head office
address, a clear listing of membership details of the sports and arts club
including eligibility, admission and withdrawal of membership, the general body
details, financial details along with funds to be raised and appointment of
auditors and liability of members, all internal matters of settlement and
dissolution also need to be listed in the bye-laws.
Maintenance of
Accounts and Registers:
Every sports and arts club registered
under the said Act should maintain the following documents and registers for
the transparency of its administration.
·
Cash
book.
·
Receipt
book.
·
Vouchers
file.
·
Ledger.
·
Monthly
register of receipts & expenditure.
·
Annual
General Body Meeting minute book.
·
Governing
committee meeting minute book.
·
Register
of members.
The
books of every registered sports and arts clubs shall at all reasonable hours
be open to inspection by the Registrar or by any person authorized by him on
this behalf.
Filing of Annual
Returns after registration:
Every registered sports and arts club
shall file its annual returns within 6 months after the date of Annual General
Body Meeting.
Details
of annual returns are:-
· An
authenticated copy of receipt and expenditure Account, Balance sheet and
report.
· A
list of names, addresses and occupation of members at the expiry of financial
year in for VI.
· A
declaration to the effect that the society has been carrying on its business
during the financial year.
Details of
documents to be filed other than annual returns:
·
Change
in membership.
·
Election
of Executive committee / change in committee members.
·
Special
resolution.
·
Particulars
of mortgage or change created by a club(Form VIII)
Any registered sports and arts club
which makes default in complying with any of the requirements of this Act shall
be punishable under this Act. A registered sports and arts clubs shall spend
out its funds on purposes authorized by this Act or its by-laws after getting
due approval from it General Body. The sports and arts club, which has not
filed its annual returns may get struck off from the register by publishing a
notice in the Tamil Nadu Government Gazette. If there is a delay in filing
certain document, the same may be condoned by appropriate authority. An amount
of fine has to be collected for such condonation of delay. The Amount of fine
and filing fees shall be payable through online payment.
Sports and Arts Clubs under Companies Act:
The non-proprietary sports clubs can be formed under section
8 of the Companies Act, 2013, allows a mechanism through which a Company can be
registered with a limited liability if such company is formed for promoting the
said objectives of clubs provided it intends to apply the income and profits in
promoting the said objects. Also that the members cannot be paid any dividends
from the profits. The registration of such a charitable company is similar to
registering of other private limited companies in exception of an additional
licences requirement stipulated in the same section.
The
proprietary sports clubs can be formed under section 7 of the companies Act
2013 provided it intends to derive profits for the services rendered and the
members are paid dividends and bonus from the profits on basis of share equity.
The aim of such clubs is to earn profits like the other private limited
companies.
Advantage of registering:
· By virtue of being a registered
body, it can get legal entity and legal status and can acquire and hold
property in its own name.
· It can initiate and contest a
suit in its name against the third party and vice-versa.
If it is a social service oriented
and charitable purpose organization, it can claim benefits
ie., tax exemption under sec.12A
and 80G of Income Tax Act from the government.
· It can generate funds from philanthropist in
abroad by registering the sports club under Foreign Contribution Regulation
Act(FCRA).
In case the sports clubs wants to
give a bar facilities to its members then such clubs must holds a valid licence
under the state laws and in Tamil Nadu such license is to be obtained in Form
F.L.2 to run a bar in terms of the Tamil Nadu Liquor (Licence and Permit)
Rules, 1981.
Registration Boss is
owned by highly experienced advocates expertise in the field of forming and
guiding NGO/Sports & Arts Clubs/organization. We are providing our clients
a complete guide to form and register for such non-profit sports and arts clubs/organization
and proprietary clubs and further follow up for active running in order to get license
for liquor bar, license for club building, license for playing games(rummy
card) and entertainments and obtain exemption under Income Tax Act and FCR Act.
We are successfully helping our clients to register and further follow up for
filing of annual returns on all purpose sports and arts clubs/organizations. We have satisfied clients pertains to registration
and administration of sports & arts clubs in Marthandam, Thucklay,
Nagercoil and around Tamil Nadu. For any assistance required to prepare and
register a Memorandum and Articles of Association for sports and arts club
under Society or Companies Act, you may contact to our Registration Boss…
