A Co-operation (Co-op) is a Company Formation which allows a group of people to buy a product or a service in bulk. All the members (owners) of the Co-op need to only buy from this group. All profits (surpluses) are divided. For example, the Co-op, consisting of 20 members, buys 1000 liters of milk and sells it in 1 liter containers to their members as well as the public. The Co-op has produced R 2000 in profit after expenses. This means that each member has made R 100 in profit. Apply on this page or call us toll free for consultation.
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A co-operative is specific form of business that provides services and/or products to its members. Profits, known as surpluses are divided among members according to the amount of the business each member did with the co-operative.
The main purpose of a co-operative is for people with common needs to get together and establish a business in order to address the needs that an individual cannot address alone.
(1) Grants and Tenders.
Certain tenders are grants requires you to have a registered co-operative at CIPC, not a Registered Pty.
(2) Structure for Sharing Profits
If you want to do business with your community and share profits, it is much better to do it in a structure than via an informal agreement.