Formalities

Choosing and registering a legal structure for your business: Co-operative

The business is jointly owned and democratically controlled, unlike other more hierarchical business structures. Co-operative members believe in the ethical values of honesty, openness, social responsibility and caring for others.

The Co-operative Principles, which provide guidelines setting out how the business should conduct itself, are:

• Voluntary and open membership: Co-operatives do not permit gender, social, racial, political or religious discrimination and are open to all willing to accept the responsibilities of membership
• Democratic member control: Co-operatives are democratically controlled by their members, who actively participate in setting policies and in decision-making
• Member economic participation: Members contribute equitably to the capital of their business. Surpluses are used to develop the business, benefiting members in proportion to their transactions with the co-operative and supporting activities approved by the membership
• Autonomy and independence: In all contracts with external bodies, co-operatives ensure that members retain democratic control and their co-operative autonomy
• Education, training and information: Co-operatives provide education and training for their members and employees to ensure their effective contribution
• Co-operation among co-operatives: Co-operatives work together through local, regional, national and international structures
• Concern for community: Co-operatives work for sustainable development through policies approved by their members.

Formation of co-operatives is by Model Rules, available from the FÁS Co-operative Development Unit (www.fas.ie).

Co-operatives can be formed as limited liability companies.

Now consider the other legal structures that you can adopt for your business:

• Sole Trader
• Partnership
• Limited liability company.

Alternatively, move on to consider the other aspects of formalities:

• Choosing and registering a name for your business
• Registering for taxation
• Setting up accounting systems
• Ensuring that your business meets all applicable legislation and regulations
• Ensuring that your business meets all appropriate quality standards
• Opening a bank account
• Arranging for appropriate insurance
• Protecting your business' intellectual property.