Co-Op Registration


Co-Op Registration

Register your Cooperative within the quickest time


What is a Co-op?
A Co-op is a registered legal entity which is owned and run by its members. Each member has one vote regardless of how many shares they own which makes it more democratic in terms of managing the company. It is important to be aware that members can have differing amounts of shareholding which could result in differing amounts of shares in the profits.

What types of Co-ops are there?
There are 4 types of Co-ops namely: Primary, Secondary, Tertiary and Apex.

How many members can there be on a Co-op
You need a minimum of 5 members to register a Co-op, two of whom must be appointed as directors. Co-ops can have employees who are not members.

Can a Pty be a member of a Co-op
Yes, but then there must be a minimum of two companies. The companies will have the same voting rights as the other members.

What is the Patronage Principle
This is when the profits are paid out according to the amount of business each member does with the Co-op and not according to the amount of shareholding.

What planning should be done before registering a Co-op
Planning is an essential element of any Co-op’s success. For example: How many shares must be authorised? What value should the Par Value shares be fixed at? Should the members raise the money by contributing to shares or using the entrance fee or both? Once you have resolved these questions you should draw up a business plan and familiarise yourself with the standard constitution for your specific industry, before you register your Co-op.

Should we draw up our own constitution
It is not necessary as CIPC has drafted 6 different standard sector constitution which cover all industry types, you need only select the most appropriate one.

Does my Co-op need an auditor
Only if the annual turnover exceeds R25 million. However, CIPC requires annual returns to be paid which will depend on the turnover of your Co-op.


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