Co-operative Definition and Registration

What is a Co-operative?

Simply put a Co-operative is a type of business which is formed by people who decide to work together to achieve a  certain goal.

Co-op members are entitled to obtain products which the Co-op provides.

The Co-operative members jointly run and own the business, which could be a farm or other organisation.
The Co-operative members share  in the profits or surpluses based on the amount of business each member did with the Co-operative.

There are 4 types of Co-operatives:

(a) Primary Co-operative registration must be made by a minimum of –

 (i) Five natural persons

(ii) Two juristic persons

(iii) A combination of any five persons

(b) A Secondary co-operative must be formed by two or more operational primary co-operatives.

(c) A Tertiary co-operative must be formed by two or more operational secondary co-operatives.

(d) A National Apex co-operative must be formed by  three operational Tertiary co-operatives that operates on a a national level, and, five operational multi-sectoral Tertiary co-operatives that operated on a provincial, district or local level.  An operational Secondary co-operative may join the apex where there is no Sectoral or multi-sectoral Tertiary that can represent the secondary co-ops.


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