State NOC for Thrift and Credit MSCS: How to Get It

Forming a credit, thrift or multi-purpose Multi-State Co-operative Society means a heavier application than the standard set. The Central Registrar’s checklist asks for a No Objection Certificate from the State Registrars concerned, and a certificate verifying the chief promoter’s credentials. Below, we explain both and how to go about them.

In this guide

• What the checklist asks
• Why these societies face extra checks
• How to approach the NOC
• Mistakes that delay NOCs
• FAQs

What the checklist asks

For thrift, credit and multi-purpose societies, the CRCS checklist adds two items to the general documents. One is a No Objection Certificate from the Registrars of the states where the society proposes to operate. The other is a certificate that the credentials of the chief promoter or promoters have been verified. The CRCS FAQ adds that this credential verification certificate comes from the state where the headquarters will be located.

Why these societies face extra checks

These societies take in member money, and the 2023 amendment also brought stricter prudential norms for thrift and credit societies. That is why regulators look closely at who runs them and where they will operate.

How to approach the NOC

1. List the states. The NOC is needed from each state of proposed operation, so settle the area of operation first.
2. Prepare a short package. A State Registrar will want to see a cover letter from the chief promoter, the proposed bye-laws, the viability scheme and the state-wise member list.
3. Submit to each State Registrar. Follow each state’s own procedure. They differ, so ask the office what format it needs.
4. Follow up and keep proof. Keep acknowledgements and copies, as some states take longer than others.
5. Get the credential verification certificate for the chief promoter from the headquarters state.

We have not found an official, uniform procedure for these NOCs, so check with each office before you start.

Mistakes that delay NOCs

• Applying to the Central Registrar before the NOCs are in hand.
• Listing a state in the area of operation without an NOC for it.
• Member lists that do not match the numbers in the viability scheme.
• A chief promoter whose background is not clearly documented.

To see where this sits in the rest of the file, read our registration process post and the complete guide.

Related reading

• Complete guide to MSCS registration
• MSCS registration process
• Credit co-operative society registration
• Multi-State Credit Co-operative Society Registration
• How Long Does MSCS Registration Take? Timeline Explained
• MSCS vs NBFC for a Lending Business
• MSCS vs Nidhi Company: Which Should You Choose?

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

FAQs

Which MSCS need a State NOC?

Thrift, credit and multi-purpose societies, as per the CRCS checklist.

Who issues the NOC?

The Registrars of co-operative societies in the states where the society plans to operate.

What is the credential verification certificate?

It certifies that the credentials of the chief promoter or promoters have been verified. Per the CRCS FAQ, it is issued from the headquarters state.

Do agricultural or dairy MSCS need NOCs?

No. The CRCS checklist lists NOCs only for thrift, credit and multi-purpose societies.

More in this MSCS series