Small Business Law > Types of Businesses > Co-Operatives > Registration of a Co-Operative
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Registration of a Co-Operative

The Registrar of Co-operatives must register the co-operative if the application meets the following conditions:

  • The application satisfies all the requirements in the Co-operatives Act.
  • The constitution of the co-operative meets all the requirements in the Co-operatives Act.
  • The constitution of the co-operative is consistent with the co-operative principles.
  • The proposed name of the co-operative follows the rules in the Co-operatives Act about co-operative names.

If the Registrar is satisfied that the application meets all of these conditions, then the Registrar will give the co-operative a registration certificate with a registration number. Once a co-operative is registered, it becomes a ‘legal person’. This means that it has legal powers similar to those of companies and other such groups.

For example, it can continue to exist even if its membership changes over time. It can open bank accounts and own land and other property. It can enter into contracts and be a party to court cases. As a “legal person”, the co-operative will have many of the same rights and powers as individuals. Before the group is registered as a co-operative, it does not have these powers.

Once the co-operative is registered, the Department of Trade and Industry will be able to give it necessary support if it –

  1. follows the co-operative principles
  2. consists of black people, women, youth, people who live in rural areas, women or people with disabilities

AND

  1. promotes equity and greater participation by its members.