How to start a cooperative society?

cooperative society

How to start a cooperative society?

Setting up a new business is an option that many people are contemplating as a possible way out of the crisis, thus generating increased self-employment. However, there are many legal forms to create a new company, so sometimes we may have doubts about knowing the function and how each type is created. So that you don’t have this problem, in this article, we will explain how to start a cooperative society.

How to start a cooperative society?

In the first place, we will have to know if the name with which we want to denominate our cooperative already exists. For this, we will have to go to the Registry of cooperative societies of our autonomous community, where we will request the certificate of the non-matching denomination. We can do it through the Internet if we have an electronic certificate, and we can request three different names.

In parallel, during the creation period, the Constituent Assembly will be held, which will be attended by all those members of the cooperative, and where they must determine the following aspects:

  • Will of the cooperative and members
  • Economic contribution
  • Internal statutes
  • Election of the different positions of responsibility

Later we will have to make the liquidation of the Tax on Patrimonial Transmissions and Legal Acts, using form 620 that we can find on the website of the Tax Agency.

We will also have to register for the following taxes and procedures:

  • Request the tax identification code
  • Registration in corporation tax
  • Registration in the economic activities tax
  • Opening of accounting books

To make the formal constitution of the cooperative, we must present before a Notary all those agreements reached by the members of the same, as well as everything exposed in the Statute of the cooperative, in such a way that they are registered by the public deed.

Finally, from the creation of the public deed, we will have one month to formalize the registration with the Cooperative Registry. It must be in the autonomous community if its activity is located only in one autonomous community and in the central one if it carries out activities in several autonomous communities.

Previous steps to create a cooperative

Suppose the workers of a company that will close its doors decide to become a cooperative to stay with the company or part of it. In that case, the first thing they must do is create a cooperative society itself because they will not be able to make any offers, especially if they are in bankruptcy. Suppose they are going to create a business from scratch. In that case, they will also have to be constituted as a cooperative society before starting their activity (something applicable to other commercial companies).

But as with all types of business, before setting out to create a cooperative society, we must make a business plan with which to carry out a complete analysis of the surrounding conditions. Obviously, we will have to decide what type of business we are going to create or manage. A mechanical workshop? A non-profit business like an NGO?

Nowadays, more and more cooperatives are emerging that are committed to technology, new organizational models, and value-added products. Thus, depending on the business we choose, we will proceed to analyze the competition that we can find in the area where we are going to locate our business activity. Studying the environment will also help us define the type of clients that we can expect and what type of goods or services we can offer them.

It is important to know that the cooperative members are associated under a free membership and voluntary withdrawal regime to carry out business activities to satisfy their economic and social needs and aspirations, with a democratic structure and functioning.

Requirements to create a cooperative

For first-degree cooperatives, a minimum of 3 members will be needed to establish them, while for second-tier cooperatives, 2 founding members will suffice.

Cooperatives must have the following governing bodies:

General assembly: decision-making is formed with the meeting of all cooperative members, who individually vote on the decisions submitted to the vote. Equivalent to the general meeting of the SA and the SL

Governing Council: carries the management and representation of the cooperative, is equivalent to the board of directors of a SA, and can establish general guidelines.

Intervention: Surveillance and review of the accounts of the cooperative.

The minimum share capital agreed in the Bylaws must be fully paid up at the time of establishing the cooperative.

Constitution process

The process of constitution of the cooperative follows these steps:

  • Negative certification of the name of the cooperative in the Registry of Cooperative Societies of the Ministry of Labor, Migration, and Social Security (or of the autonomous community).
  • Obtaining the NIF (tax identification number) in the AETA.
  • Carry out the public deed of the cooperative before a notary, which will state:
  • The identity of the grantors.
  • Manifestation of these that they meet the requirements to be partners.
  • The will to establish a cooperative society and the class in question.
  • Accreditation by the grantors of having subscribed the minimum mandatory contribution to the capital stock to be a partner and having paid it, at least, in the proportion required by statute.

If any, the value is assigned to non-monetary contributions. Certification of the grantors that the total amount of the contributions paid is not less than the minimum share capital established by the statute. Identification of people must occupy the different positions of the first Governing Council, controller, or auditors.

It should be noted that cooperatives have some tax benefits, such as being exempt from paying the tax on property transfers and documented legal acts of the Tax Authorities of the autonomous communities.

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