A co-operative is a voluntary association owned and operated by its members for their mutual benefit. It has several key features: it is formed by voluntary membership; has democratic management where each member has one vote; limits returns on member investments; and prioritizes service to members over profit. Common types of co-operatives include consumer, credit, producer, marketing, agricultural, and multi-purpose co-operatives. In Nepal, co-operatives play an important role in encouraging savings, creating jobs, improving production and living standards, empowering women, and developing rural areas. To register a co-operative, preliminary meetings are held to develop bylaws and plans, then an application is submitted for investigation and, if

1. CO-OPERATIVE

2. Co-operative
organization
• The voluntary association worked
on the principle of all for each and
each for all for the upliftment of
economically poor people. According
to Macmillan Dictionary," A co-
operative is a business or other
organization. by owned the people
who work in it and who also Share
the profit.

3. FEATURE OF CO-OPERATIVE
ORGANIZATION
 A Voluntary Association- A co-operative Society is a voluntary association Society of his free will and can leave it
at any time . In Nepal at least 25 members are required for estabishment of interest. Co-operative organization.
 Open Membership-In a co-c -operative membership is entirely voluntary and is not based upon any other (eg,
political, religious, and racial). So, in a com operative organization, without any discrimination membership to all
who have common interest.
 Separate legal entity-A co-operative Society must be registered under the co-operative Societies Act, 2074 in
Nepal. It is created by the law and can only be dissolved by law.
 Democratic Management-co-operative is s democracy In action. Business of a co-operative society is Managed
by a managing committee; which is elected by the members.
 Distribution of Surplus-Unlike profit-oriented enterprises the surplus (i.e, profit after limited interest has been
paid on capital of a co-operate Society is not distributed to the members in the ratio of their capital contribution
or in an agreed. ratio.

4.  Service Motive-One basic feature which distinguishes a co-operative organization from
other forms of business. owner ship is that the primary objective of a co-operative Society
is to render Services to its members rather than to earn profits.
 Cash Transaction- In a cooperative cash and carry System" is a universal feature. In the
absence of adequate capital, grant of credit is not possible
 Moral Emphasis - A cooperative organization generally originates in the poorer Section of
population, hence more emphasis is laid on the development of moral character of the
individual member.
 Absence of Exploitation - A cooperative Society [inherently denies exploitation of its
members. and consumers Basically, the society takes. care of the mutual economic
benefits of its own members.
 Equality-In cooperatives all the members are treated equaly. No one is discriminated on
the basis of caste and creed. Equality is the main essences of co-operative Society.

5. Types/common
forms of
Co-operative
organization
Consumer cooperative- A consumers' ' cooperative is a
business owned by it Customers. Employees can also generally
become members - Members vote on major decisions, and elect
the board of directors form. their amongst own number.
Saving and credit cooperative- Such cooperative is also known as
cooperative credit society. Saving and credit cooperatives. are
financial, co-operatives which bring people together to Save,
borrow at low cost rates, and their finances. manage
Producer cooperative-To protect the interest of Small producers,
face competition and increase productivity these Societies are set
up.
Marketing cooperative- this cooperative engages in the supply of
production impulse to members. and market that their products.
With an small producers in selling aim of helping with an of
helping their products "Small produces in selling their products.

6. Agricultural cooperative-Agricultural cooperative is also known
as a farmer's co-operative it is on enterprise or company where
formers pool their resources in certain areas of activity.
Service Cooperative-Service cooperative is the
organization engage in medical, dental, case, hospitalization,
transportation insurance, housing, Tabor, electric light and
power, communication and other Services.
Multi purpose cooperative- A cooperative Society established
to attain multi purpose objectives is called multi-purpose
cooperative Society. It is an organization which is owned and
operated by a group of individuals for their mutual benefit.
Housing cooperative Society-To help people with limited
income to construct houses at reasonable casts,
these setting Societies are established.

7. Role /importance of co-operatives in economic
Development of Nepal
• Encourage Saving - Cooperative Societies develop the habit of saving among encourage
saving among members.
• creation of Employment opportunity - Employment generation is considered as one of
the problems in the developing cat countries like Nepal. cooperatives however help in
generating employment by creating jobs. directly and indirectly.
• Improvement in production and Distribution - cooperative also improves productivity
and distribution System in the developing countries Different types of cooperative
are involved in production, Selling and distribution of various local goods and Services.
• Improve living Standard - co-operatives engaged in different means provides various
opportunity and Services to its members as well as non-members.

8. • proper utilization of Resources - cooperatives also assist in proper utilization of resources
available in the capital, country. Available resources such as resources, (row Materials, assets,
tools y Machines, factory. land etc ) will be utilized when co-operating in different sector are
established and operates.
• Women Empowerment - Cooperative is working for Social welfare of the locals. It is also playing
role to improve the status of rural women in the society
• Institutional credit - Mostly in the developing countries like Nepal, banking services are focused
in the urban centers. The banks Situated in the rural areas are reluctant to provide loan facility to
people, if the loan amount is Small.
• Developing Rural Areas - More than 80% people of Nepal live in rural area which don't have
proper and reliable source of income.
• Uplift local economy - In Nepal, rural areas are Suffering in the absence of investments to a
harness local Skill and resources that can up life the local economy.

9. PROCEDURE OF REGISTRATION OF CO-OPERATIVES
IN NEPAL
A co-operative organization can carry out its functions only after it's registration under the co-operative act
2074 BS forming a co-operative is a multiphase task. In Nepal, Co-operative Act 2074 BS and co-operative Rule
the and govern registration, working and management of co-operative organization for registration of co-
operatives. following procedures should be followed.
Formation
Step 1
preliminary Consultations and Meeting
The very first step in registration of cooperating in Nepal is the preliminary meeting and consultation among the
members with common problems and, interest and objectives. In this meeting. the members talk about number of
members, existing market condition and future business prospects or mobility, operating plan etc..They also decide on
the following matters as well:
• Name, address, Scope and nature of proposed. co-operative organization.
• Specify objectives of proposed co-operative
• logo of proposed co-operative formation of by-laws drafting committee.
• formation of business plan drafting committee
• formation of fiscal and personal rules and regulations committee
• The value of each Shore and membership fee

10. Step 2
• Application for Registration After completing the required documents, the prepared documents
are submitted along with application form to the Registrar of Department of cooperating,
Nepal The application form must contain the following particulars :-
• Name and address of the proposed co-operative organization;
• Aims and objectives Working Area ,Total Share capital and division of Share capital.
• Names and addresses of its members; classification of members, their liability, rights and duties,
and. process of admission of new members. Along with the duly filled application from
following documents also must be submitted.
• Two copies of by-laws of proposed co-operative organization dolly duly signed by all members,
Original of work plan of the co-operative organization 2 sets.
• Attested copy meetings of decisions of organizing
• Individual statement (name, as address age, profession, and 3 generation details of a least 25
members with their signatures and attested copies of their citizenship certificate.
• original copy of voucher of registration fee deposit, and Rules and regulations of the co-
operative Organization.

11. Investigation of the Application. of
the proposed co-operative
organization, the registrar will
investigate the application and
Submitted documents. If the
registrar finds Some amendments
needed She/he will inform
the applicant within Is days of the
submission of the application.
Step 3

12. Step 4
certificate of Registration
If the Register is satisfied with the details furnished in the application form and the documents Submitted;
She/he will enter the co-operative organization's name in her/his register. The proposed co-
operative organization becomes a Separate legal entity after receiving the certificate of registration from Registrar.
Holding of the preliminary General Meeting within three months to Monthly from the date of registration, the newly
established co-operative organization should hold preliminary general meeting with presence of minimum fifty
percent members. The preliminary general meeting will dissolve the and Committee and elect new
board of direction The initial general meeting will also decide.
• formation of accounts committee
• Approve the appointment of chief executives , executives and employees.
• Approve about office building / spare,
• Approval of day-to-day operation programs
• Approved of preliminary expenses
• Approval of Assets and capital goods..
• Approval of Form, registers and stationery
• Delegation of authority to the board of directors...
• certificate distribution to elected board. members; and
• Decide about future business and meetings.