Cooperative Brochure
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- Winifred Lloyd
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1 Cooperative Brochure What is a Cooperative? A cooperative is established by a group of individuals and cannot be formed by a single individual, unlike companies and closed corporations. The work cooperation implies that a group of people must work together on a voluntary basis. The group must also have a mutual or common need or purpose for forming the cooperative. If the members have different needs, a cooperatives cannot be established A group of people would therefore be able to form a horticultural maintenance cooperative, a composting cooperative or funeral cooperative, because a group of people could more easily meet the objectives than a single individual on his or her own. The activities of the cooperative must be of mutual benefits to all members. If only one member benefits, a cooperative cannot be registered. It is usually when people are in need that they decide to stand together and as a group look after their own interests. Registration procedure for a Co operative Before registering a co operative, a formation meeting must be held to determine the aim and objectives and other details regarding the co operative. To reserve a name for the co operative, complete form CR5. Name reservation is not compulsory, but preferable. To register a co operative, submit the following to CIPC: Form CR1 Either form CR4 (appointment of auditor) OR form CR8 (Exemption of certain auditing requirements for a given period). Certified copies of IDs of all members of co operative Two copies of the model constitution CIPC can be contacted by: Visit our offices at Block F, the dti campus, corner of Esselen and Meintjies Streets, Sunnyside, Pretoria. You could visit the CIPC website ( Write to the Registrar of Co operatives, Private Bag X237, Pretoria, Phone the Customer Contact Centre of the dti at (CIPC). 1 P age
2 Formation meeting Before registering a co operative, a formation meeting need to be held with all persons that are interested in establishing the co operative. The Chairperson outlines the aims and objectives of the proposed co operative The Chairperson answers all the arising questions The Chairperson invites everyone to join Those interested should be given an application form for Membership to complete The persons that have completed the above mentioned application form decide how many persons will be required to manage the co operative The members will then elect the board of directors (the board of directors will be the management or steering committee of the co operative) Also discuss and agree on the following: The Objectives (exactly what the co operative will do) The equipment, premises and other materials needed by the enterprise Where will the premises (co operative office) be located How will the co operative be financed? How will the funds be obtained? Draw up an initial business plan Choose a name for the co operative (and alternative names in case the first name is already registered by another enterprise). See notes under C for more information in this regard. Complete and lodge the necessary application documents explained hereunder Register as a CIPC customer by creating a customer code and pay the required fees Choosing a name for the co operative Discuss alternative names for the co operative and agree on a name. To reserve the name is optional but preferable. To reserve a name a form CR5. (Reservation of name) should be completed. The fee for reservation of a name is R Reservation of name: The name of the co operative can be reserved by: Post. Post the CR5 to: Name Reservations, P O Box 429, Pretoria, If you choose not to reserve the name, remember to send at least 5 alternative proposed names for your cooperative. Important rules to keep in mind when choosing a co operative name: 2 P age
3 The name must always indicate what the main business objective of the co operative is. For example a co operative that does Catering, the name must have a word like Catering as part of the name. If the co operative does multiple objectives the main objective must still appear as part of the name but words like Multi Purpose or Other Projects could also form part of it. The words Primary /Secondary / Tertiary Co operative Limited must always appear at the end of the name. Required documents for application To apply for registration the following documents must be lodged with CIPC: Certified copies of Identity Documents of all members. A Model Constitution. Two copies must be submitted. One copy may be a photocopy of the original. It is very important that the parts that are completed by hand are written neatly and legibly. The last page of the constitution must be signed by all the founder members of the co operative. A form CR1 (Application Form); AND: Either a form CR4 (Appointment of Auditor) OR a form CR8 * (Exemption Of Certain Auditing Requirements For A Given Period). See note hereunder (*). A CR4 form, Part I, Section A (Appointment Of Auditor) This form must be completed by the Auditor (i.e. a Chartered Accountant). When completing the Auditor s details, his/her details must be identical to the details registered at the professional body. Information provided will be verified with the applicable professional body. OR A CR8 form * (Exemption of Certain Auditing Requirements for a Given Period). When a co operative cannot afford to use the services of an Auditor annually, it must complete a CR8 form and must choose one of the three options under part 2 of the form. The CR8 form is in the format of an affidavit, which must be provided by the Chairperson of the Co operative and must be signed by a Commissioner of Oaths. When completing option 2(a) or 2(b), the Auditor or Accounting Officer s details must be identical to the details registered at the professional body. Information provided will be verified with the applicable professional body. * Note: When completing a CR8 form: Options on CR8 form: Option 2(a) of the CR8 form, means the co operative will use the services of a Auditor (i.e. a Chartered Accountant), but the period for which the audit will be done, will be longer than 12 months (e.g. 18 months, 24 months), but not longer than 3 years. The Auditor s details must be 3 P age
4 completed on the CR8 form. A letter of consent by the Auditor on his/her business letterhead must also be attached to the CR8). Option 2(b) of the form CR8 form means the co operative will use the services of an Accounting Officer registered with one of the professional bodies listed on page 5 of the CR8 form. A letter of consent by the Accounting Officer on his/her business letterhead must also be attached to the CR8. Option 2(c) of the CR8 form means the co operative will use the services of a person or organisation that is qualified to carry out the audit of a co operative. A letter of consent by the person / the person at the organisation that will do the audit of the co operative must be attached to the CR8. Furthermore a certified copy of the person s qualifications must be attached. Note: All registered co operative must submit a form CR4 or CR8 annually, with their annual returns, for authorisation. Payment of Fees For details regarding payment of fees go to (cooperatives) Lodgment of documents Before lodging the relevant documents, pay the application fee of R into the CIPC bank account, or at the CIPC offices. All applications for registration of new co operatives must, together with proof of payment of the prescribed fee be lodged with CIPC directly or be posted to the Co operatives Division, Private Bag X237, Pretoria, 0001, or be couriered to CIPC at its physical address, Block F, the dti Campus, Meintjies Street, Sunnyside, Pretoria. How long does it take to get registered? This depends on how many applications are in the office at a specific time. When there is a backlog it could take up to 6 weeks to get registered. However, we strive to register co operatives within a week of receipt. Note all applications are done strictly in order of date of receipt. Call Centre: (CIPC) International Tel: Fax Number: International Fax: P age
5 Contact Details: Business Enterprise Development and EPWP Office: EPWP Manager: Dawn Govender / P age
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