You will need this registration if you intend to form a co-operative. A co-operative is an organisation owned and controlled by its members that operates primarily for the economic, social or cultural benefit of its members. A co-operative legally registered in one jurisdiction is able to operate on a national basis without the need for further registration or reporting requirements in each state.
A co-operative can be either a:
- distributing co-operative
- non-distributing co-operative.
A distributing co-operative distributes part of a surplus to the members of the co-operative as bonus shares, dividends or rebates. Non-distributive co-operatives do not distribute parts of a surplus to its members as they are not-for-profit organisations which exist for the purposes of community benefit.