Setting up a cooperative

1What is a cooperative society

The cooperative society is governed by Law no. 1/2005. It is a company owned by its members, who work together for a common purpose and share the earnings according to the rules in the articles of association.

Agricultural cooperatives have a separate law, Law no. 566/2004. We handle them too.

2The basic rules

• Members: at least 5 cooperative members.
• Voting: in the general meeting, each member has a single vote, however many shares they hold.
• Cap: a member may not hold more than 20% of the share capital.
• Variable capital: it grows or shrinks as members join and leave.
• A member joining: pays at least 30% of the subscribed shares, and the rest within 12 months at most.

3Types of cooperatives

The law allows several types of cooperatives, depending on what the members do together. We help you choose the right type and take care of the set-up.

Cooperative societies · Law no. 1/2005

• Craft: tradespeople who produce goods or provide services together, for example tailoring, carpentry or repair workshops.
• Consumer: they buy goods together for their members, to get better prices, and can also sell them to other people.
• Marketing: they collect and sell the members' products together, for example fruit, vegetables or dairy products.
• Housing: the members build, buy or manage housing together.
• Fishing: fishing, fish farming and selling fish.
• Transport: the members provide passenger or freight transport together.
• Forestry: forest exploitation, wood processing and sale.
• Other forms: any other activity allowed by law, carried out jointly by the members.

Agricultural cooperatives · Law no. 566/2004

There is a separate law for agriculture. An agricultural cooperative brings together farmers and small producers who buy seeds, fertiliser or machinery together, store and process their products and sell them together. Each member keeps their own farm and land.

• It is set up by at least 5 people.
• At set-up, a cash contribution is mandatory. Members can also contribute assets, for example land or machinery.
• It is registered with the Trade Register, like other cooperatives.

First and second tier

• First tier: a cooperative made up of individuals. This is the most common form.
• Second tier: a cooperative made up of several cooperatives, sometimes together with other people, for larger projects, for example a shared processing plant.

Credit cooperatives operate under special rules and need authorisation from the National Bank of Romania.

4What we need from you

• List of founding members and their ID cards
• For the registered office: the title deed or, where applicable, the lease. We draw up the loan-for-use agreement ourselves.
• What the cooperative will do
• Each member's contribution to the share capital

We draft the articles of association and the minutes of the founding meeting ourselves.

5The steps

1. Free consultationWe decide on the type of cooperative, the members and the rules in the articles of association.
2. The nameWe check and reserve the name.
3. The founding meetingWe draft the articles of association and the minutes, and the members sign.
4. FilingWe file the application with the Trade Register.
5. The certificateThe cooperative receives its registration certificate.