In terms of which Act are co-operatives registered?

Co-operatives are registered in terms of Co-operatives Amendment Act (Act no. 6 of 2013)

With regard to registration, what changes should we expected due to the new implementation of the new Co-operatives Amendment Act?

The change in Act has resulted in the:


• Implementation of a new billing system
• New application forms and model constitutions must be used (the old forms and statutes will not be accepted anymore).
• New Registration Numbers will be issued when co-ops are registered.  The new Registration Numbers will look similar to the registration numbers used for Companies and CC’s.
• The minimum number of members required to register a PRIMARY co-operative is 5 natural persons, 2 juristic persons or a combination of any 5 persons.  After registration, juristic persons may join as members of the co-operative.
• The minimum number of members required to register a SECONDARY co-operative is 2 operational PRIMARY co-operatives.  After registration, juristic persons may join as members.
• The minimum number of members required to register a TERTIARY co-opertive is 2 operational SECONDARY co-operatives.  Only secondary co-operatives can be members of a tertiary co-operative.

National Apex Cooperative: Formed by a minimum of 3 operational sectoral tertiary co-operatives operating on a national level and 5 operational multi-sectoral tertiary co-operatives operating on a provincial, district or local level. Secondary co-operatives may join where there are no tertiary co-operatives.

What is a co-operative?

It is a business where a group of people with common needs get together voluntarily and establish a co-operative in order to address the needs that an individual cannot address alone.

For example the co-operative could buy in bulk the inputs the members need to produce a certain product (e.g. flour to bake bread and cakes).  The members then produce the product and the co-operative market and sell it on their behalf (e.g. the bread and cakes are sold to the public by the co-operative).

How does one register a co-operative?
  • Clients will access the co-operative registration forms from this website (www.cipc.co.za)
  • Clients will capture information and submit same with all supporting documents
  • Clients will be billed when co-operative registration is approved
  • At the formation meeting, members appoint the interim board of directors

 

Where can I obtain the application documents?

On the website (www.cipc.co.za), go to "Register your business" and select the "Register a co-operative" icon.

Which forms do we need to capture?

Capture form Co-op 1 and Co-op 5 on the system and complete relevant model constitution.

What are important things to remember with regard to the forms?

Remember to submit 1 copy of the forms and 2 copies of the constitution.

Please note that constitutions will not be retyped and reprinted during the registration process.  Therefore it is very important that the parts that are completed by hand are written neatly and legible.  The constitution will be registered as submitted.

Can we reserve the name for the co-operative before registration and what must be kept in mind when choosing a name for our co-operative?

Yes, it is compulsory to reserve a name and obtain approval for the name before registering a co-operative. A fee of R50.00 is payable for this service.

To Reserve a name complete a CoR9 form on the CIPC website, but indicate under Comments on the forms “Co-operative”.  This is an interim arrangement as the CIPC website is not yet ready to do the applicable Co-operatives reservation of name form.  

• 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 “Co-operative Limited” must always appear at the end of the name.

How much does it cost to register a co-operative and how do we pay?

The registration fee is R125-00 per application.  The client must register as a CIPC customer in order to have a customer code.  The client  must then pay the applicable fee into CIPC bank account and use the customer code as a reference.

What is the registration turnaround time?

Turnaround time is 2 working days from the date of tracking.