Types of Cooperative Societies

Types of Cooperative Societies

Cooperative organisations are set up in different fields to promote the economic well-being of different sections of the society. So, according to the needs of the people, there are different types of cooperative societies in India.

1. Consumers’ Cooperative Societies: These societies are formed to protect the interest of consumers by making available consumer goods of high quality at reasonable price.

2. Producer’s Cooperative Societies: These societies are formed to protect the interest of small producers and artisans by making available items of their need for production, like raw materials, tools and equipment, etc.

3. Marketing Cooperative Societies: To solve the problem of marketing the products, small producers join hands to form marketing cooperative societies.

4. Housing Cooperative Societies: To provide residential houses to the members, housing cooperative societies are formed generally in urban areas.

5. Farming Cooperative Societies: These societies are formed by the small farmers to get the benefits of large-scale farming.

6. Credit Cooperative Societies: These societies are started by persons who are in need of credit. Credit Co-operative Societies accept deposits from the members and grant them loans at reasonable rate of interest

steps in formation of private company

1. be properly registered and stamped.
2. Article of Association: Article of Association (AoA) is also required to be signed and submitted. All members who previously signed MoA, should also be signing the AoA.
3. The next step is preparing a list of directors which should be filed with the Registrar of Companies.
4. Directors of the company should provide a written consent agreeing to be directors, should be filed with the Registrar of Companies (RoC).
5. The notice of address of the office needs to be filed.
6. A statutory declaration should be made by any advocate of either the High Court or Supreme Court, or a person of the capacity of Director, Secretary or Managing Director. This declaration shall be filed with the RoC.

Certificate of Incorporation: Certificate of incorporation is issued when the registrar is satisfied with the documents provided. This certificate validates the establishment of the company in the records.

Certificate of commencement of business: Certificate of commencement of business is required for a public company to start doing business, while a private company can start business once it has received the certificate of incorporation.

Public companies receiving the certificate of incorporation can issue prospectus in order to make the public subscribe to the share for raising capital. Once all the minimum number of required shares have been subscribed, a letter should be sent to the registrar along with a bank document stating the receiving of the money.

The registrar will issue a certificate upon finding the provided documents satisfactory. This certificate is known as certificate of commencement of business. The company can start business activities from the date of issue of the certificate and the business shall be done as per rules laid down in the MoA (Memorandum of Association).

This concludes the topic of Steps in Formation of a Company, which is an important concept for the students of Commerce. For more information, stay tuned to BYJU’S.

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