Khadi Institution
The Societies Registration Act, 1860, provides for facilities to form institutions for carrying on social and economic activities especially with a view to creating gainful employment for poor artisans through Khadi activities organized on no profit no loss basis. However, this Act does not permit formation of institutions to undertake commercial activities.

Structure of Institution
Registered institutions have their own decentralized units of production and each institution has a Chairman, Secretary, Treasurer and other executive members. So far as the institution is concerned, the Chairman of the institution is assisted by the Secretary, Treasurer, Accountant, Internal Auditors, Production Managers, Sales Managers and others. It would not be out of place to mention here that most of Institutional Seretaries hold on to the same post for years together without any retirement age limit and some times it is even here ditony.

Operational Area 
Each institution has its own operational area which is demarcated by the Certification Committee of KVIC, Mumbai.

Function of Registered Khadi Institution 

1. Extension of Khadi activity in the rural and remote areas.
2. To give financial and technical guidance to the individual artisans.
3. To supply the raw materials and marketing of the products of the artisans.
4. To supply the tools and equipment for the registered artisans.
5. To select the artisans for training/upgradation at the centres or outside the centre.
The registered institutions perform broad socio economic functions for the welfare of artisans, non-artisans and the people of the area concerned.