October 7, 2026 · Guides

Minimum Members and States Needed to Form an MSCS

The first question every group of promoters asks is how many members they need. For a Multi-State Co-operative Society (MSCS) made up of individuals, the answer is at least 50 persons from each state concerned. This guide explains that rule, how the CRCS checks it and the mistakes that leave groups short.

In this guide

The rule: 50 members from each state
How many states to start with
How the CRCS checks the count
Why you should aim above 50
Other limits that affect the member list
FAQs

The rule: 50 members from each state

Section 6 of the Multi-State Co-operative Societies Act, 2002 sets the minimum. Where the members are individuals, there must be at least fifty persons from each of the states concerned. The count is per state, not in total. A society with 60 members in one state and 40 in another does not qualify, even though it has 100 members overall.

Where the members are co-operative societies rather than individuals, Section 6 asks for at least five such societies that are not all registered in the same state. If your group is made of societies, talk to us before you draw up the member list, because the way societies are counted needs checking against the exact wording and your own papers.

How many states to start with

The CRCS checklist says initial registration is limited to two contiguous states. So the common first step is two neighbouring states with at least 50 members in each, which means at least 100 members in total. Whether and how an existing society can add states later is a separate step, covered in our post on area of operation later in this series.

How the CRCS checks the count

The checklist asks for a list of members with ID proofs, attested by the chief promoter. The state a member counts for is the one shown in their identity and address proof. That is why mismatched or old addresses are a common cause of queries.

Why you should aim above 50

If you apply with exactly 50 in a state, one illegible ID, one duplicate or one member who withdraws can drop you below the line. We advise promoters to collect a safety margin of several extra members in each state and to verify every ID proof before the list goes in.

Other limits that affect the member list

Shareholding cap. Section 33 says no member, apart from certain authorities and co-operative societies, can hold more than a prescribed portion of share capital, and never more than one-fifth. Plan the share split so no single person is over the limit.
Chief promoter attestation. Every ID proof needs the chief promoter’s attestation, so choose someone who can personally verify members in both states.
Share money. The bank certificate shows a credit balance in the society’s name, so the share contributions should reconcile with the member list.

See the full list of papers in our complete MSCS registration guide.

Need help with your MSCS? See our Multistate Co-operative Society registration service, call +91 93117 95484, or write to mail@taxhint.in.

FAQs

How many members are needed to register an MSCS?

Individuals need at least 50 from each state concerned under Section 6 of the Act, so for two states that means at least 100 in total.

Can I register an MSCS with members from only one state?

No, the society has to serve members in more than one state, and the 50-member minimum applies to each state.

Can co-operative societies be members?

Yes, with a different minimum. Section 6 asks for at least five societies as members, not all registered in the same state.

Who attests the member ID proofs?

The chief promoter does, as the CRCS checklist requires.