Registration of сooperative in Ukraine

1) Cooperative - a legal entity created by individuals and/or legal entities that have voluntarily united to conduct joint economic and other activities.

2) Cooperatives are divided into 3 types:

• production cooperative;
• service cooperative;
• consumer cooperative (consumer society).

3) 3 participants - the minimum number for founding a cooperative.

What is a "cooperative"?

A cooperative is a legal entity created as a result of the association of individuals and/or legal entities on the basis of membership for joint economic and other activities with the aim of improving their economic condition.

The basis of cooperatives is the combination of personal and collective interests of their members, the division of risks, costs and revenues between them, the development of their self-organization, self-management and self-control.

Who can establish and be a member of a cooperative?

The founders of the cooperative can be:

• citizen of Ukraine;
• foreigners and stateless persons;
• legal entities of Ukraine;
• legal entities of foreign countries.

Members of the cooperative can be:

• citizens of Ukraine who have reached the age of 16;
• foreigners and stateless persons who have reached the age of 16;
• legal entities of Ukraine;
• legal entities of foreign countries,

- who have paid the entrance fee and share in the amounts determined by the charter of the cooperative, comply with the requirements of the charter and enjoy the right to vote.

What are the types of cooperatives?

1. Production cooperative:

​​​​​​- is created by the association of natural persons;

- is created for general production or other economic activity;

- members accept mandatory labor participation in the activities of the cooperative;

- the purpose of the activity is to make a profit.

2. Service cooperative:

- is created by combining natural and/or legal entities;

- is created to provide services to members of the cooperative and other persons;

- services are provided for economic activity.

Service cooperatives can provide services to other persons in volumes that should not exceed 20 percent of the total turnover of the cooperative.

3. Consumer cooperative (consumer society):

- is created by combining natural and/or legal entities;

- is created for the organization of trade services, procurement of agricultural products, raw materials, production of products and provision of other services;

- the goal of creation is to satisfy the consumer needs of the members of the cooperative.

Cooperatives can also be divided into:

• agricultural,
• housing and construction,
• gardening,
• garage,
• trade and purchasing,
• transport,
• educational,
• tourist,
• medical etc.

What bodies are created in the cooperative?

• the general meeting of members of the cooperative is the highest governing body of the cooperative;
• the board - an executive body headed by a chairman;

• audit commission - a body that supervises the financial and economic activities of the cooperative;

• the supervisory board is a supervisory body that can be created if the number of members of the cooperative exceeds 50 people; monitors compliance with the cooperative charter and the activities of the executive body.

Under what conditions can a cooperative get the status of a non-profit organization?

If a cooperative is registered to serve its members directly, it is possible to obtain the status of a non-profit organization. This status exempts from paying taxes on those funds that are transferred to the cooperative's account.