The registration of a cooperative is usually carried out for the purpose of developing manufacturing and commercial activity. Agricultural cooperatives are also common.
Legal status and liability of the members
A cooperative is a legal entity and is liable for its obligations with its own property. Its members are liable for the obligations only up to the amount of the share contributions made and do not bear personal property liability for the cooperative's obligations.
Requirements for establishment
- At least 7 legally capable individuals are required for establishment.
- Minors under the age of 14 and minors aged 14 to 18 cannot be founders. Minors over the age of 16 may become members after establishment, but the written consent of a parent is required.
Membership and capital
Only individuals may be members of a cooperative. Membership in several cooperatives is possible. There is no minimum required amount of capital for cooperatives. Each member makes an entrance contribution and a share contribution, the amount and procedure for payment of which are determined in the articles of association. Non-monetary contributions are valued by three experts appointed by the management board.
Management bodies
At the constituent meeting, the following are elected:
- A management board
- A control board
- A chairperson of the cooperative
The members of these bodies are elected from among the cooperative members, and their term of office is 4 years. There is no requirement as to a minimum or maximum number of members on the boards.
Documents for registration in the Commercial Register
The following documents are submitted for the registration of a cooperative:
- An application on Form А7
- Minutes of the constituent meeting
- A list of the cooperative members present
- The articles of association of the cooperative and a transcript with personal data redacted
- A notarially certified specimen of the chairperson's signature
- Declarations from the members of the management and control boards of compliance with the statutory requirements
- Criminal record certificates of the chairperson and the members of the boards
- Declarations under Article 13(4) and (5) of the Commercial Register and Register of Non-Profit Legal Entities Act
- A power of attorney (if necessary)
Additional documents such as a licence or decisions of the Territorial Expert Medical Commission (ТЕЛК) may be required depending on the activity.
Particularities when submitting documents
- No state fee is charged for the registration of a cooperative in the Commercial Register.
- When the documents are submitted by an attorney, the power of attorney and the application need not be notarially certified.
- If the documents are submitted by another authorised representative, a notarially certified power of attorney is required, as well as certification of the signatures of the members of the management board on the Form А7 application.
If you need legal advice or assistance in establishing a cooperative or making changes to one, contact us on tel.: 0887550706 or by e-mail: [email protected]
