Forming New
Co-operatives?

Check out these links:

Co-operatives Society Act

Guidelines to Formation of New Co-operatives

MCYS RCS

FAQ - Frequently Asked Questions

What is the Legislation that Governs Co-operative Societies?

The activities of co-operative societies are regulated through the Co-operative Societies Act (CSA) and Co-operative Societies Rules (CSR) administered by the Registry of Co-operative Societies which comes under the purview of the Ministry of Community Development, Youth & Sports.  

What is a Co-operative Society?

A co-operative society is an association of persons who have voluntarily joined together to achieve a common economic and social end through the formation of a jointly-owned and democratically controlled business organization. Members make equitable contributions to the capital required and accept a fair share of the risks and benefits of the undertaking. 

Co-operative societies work on the principles of self-help and mutual assistance to provide services for their members. These include credit, consumer, medical, insurance, dental, transport, security, food, housing, travel, childcare and welfare services.  

What are the types of Co-operative Societies?

There are two types of co-operative societies – primary and secondary society.

A primary society is a registered society all of whose members are individual persons, or institutions which, have the qualifications for membership.

A secondary society is a registered society all of whose members are co-operative societies or trade unions and which has as its object the facilitation of the operations of primary societies.  

What is the Difference between Co-operative Societies and Companies?

The Co-operative is different from a Company in the following ways:

Co-operative follows the principle of one-member-one vote, while the voting in a Company is determined by the type and number of shares held.

A Co-operative is an association of members but a Company is an association of capital.

The main objective of a Co-operative is to serve members’ needs, but the objective of a Company is to maximize profits for its shareholders.  

What is the Difference between a Co-operative Society and a Society registered under the Societies Act?

A society is essentially an association of 10 or more people. Where there is legislation to provide for registration of specific types of association of persons (e.g. by the nature of their objects), these associations will be excluded from the definition of “society”. Hence, a “society” can include any club, company, partnership, whatever its nature or object, but does not include any company registered under the Companies Act, trade union, co-operative society or mutual benefit organization.

Members of a co-operative society get together to promote the economic interest of their members. They have to submit viable business plan of the co-operative before registration. These two pre-requisites are not present in a society.