Home
AI Virtual
Assistant

Easily setup a cooperative society

Operating as a cooperative society gives you, the owners and stakeholders complete decision making powers.

What is acooperative?

A corporative society is a type of organizational structure in which the members or owners are also the decision-makers and stakeholders. This type of society is often used in cooperatives, where the members have a shared ownership and governance of the business. In a corporative society, the members or owners have a more active role in decision-making and management, as compared to a more traditional shareholder-owned company.

What you need to register a cooperative society

Cooperative society setup is regulated by Ministry of Trade Industry and Cooperatives. The documents to do with registering a cooperative are filed as physical copies.

Buy a copy of the cooperative societies Act, Cap 112 and the cooperativesocieties regulations

Enclose photographs of respective people to handle the society's accounts

Registration fee of UgX 50,000 to account number No. 6000010330 Barclays bank IPS Branch account.

Pros & Cons of running as a cooperative society

Advantages to running as a cooperative society

Increased sense of ownership and responsibility: Since the members or owners are also the decision-makers, they have a stronger sense of ownership and responsibility towards the business.

More democratic decision-making: In a corporative society, decisions are made through a more democratic process, where all members have a say in the decision-making.

Greater accountability: Since the members or owners are also the decision-makers, they are more accountable for the decisions and actions of the business.

Improved workplace culture: A corporative society can foster a more positive workplace culture, as the members or owners are more likely to be invested in the well-being of the business and each other.

Increased innovation: With a more democratic decision-making process, a corporative society can encourage more innovative thinking and problem-solving.

Greater flexibility: A corporative society can be more flexible in terms of decision-making and management, as the members or owners can adapt the business model to changing circumstances.

Better social responsibility: A corporative society can be more socially responsible, as the members or owners are more likely to be invested in the community and the environment.

Improved employee morale: With a more participatory management style, a corporative society can improve employee morale and job satisfaction.

Increased profitability: By involving all members or owners in decision-making, a corporative society can make more informed and profitable business decisions.

Greater sense of community: A corporative society can create a stronger sense of community among its members or owners, as they work together towards a common goal.

Disadvantages to running as a cooperative society

Lack of expertise: Some members or owners may not have the necessary expertise or experience to make informed decisions.

Potential for conflict: With more members or owners involved in decision-making, there is a higher potential for conflict and disagreements.

Slower decision-making: With more members or owners to consult, decision-making can be slower and less efficient.

Difficulty in setting priorities: With more members or owners involved, it can be difficult to set priorities and focus on the most important issues.

Greater risk of bias: With more members or owners involved, there is a greater risk of bias and favoritism in decision-making.

Difficulty in holding individuals accountable: With more members or owners involved, it can be difficult to hold individuals accountable for their actions and decisions.

Greater risk of groupthink: With more members or owners involved, there is a greater risk of groupthink and a lack of critical thinking.

Difficulty in maintaining confidentiality: With more members or owners involved, it can be difficult to maintain confidentiality and protect sensitive information.

Greater risk of legal challenges: With more members or owners involved, there is a greater risk of legal challenges and liability.

Difficulty in scaling: With more members or owners involved, it can be difficult to scale the business and make decisions in a timely and efficient manner.

#Contact Us

Got Any Questions? Ask An Advocate

Have questions, need support, or want to learn more about our services? Our team is ready to assist you. Reach out to us through any of the channels below, and we'll get back to you as soon as possible. Your legal needs are our priority.

Monday To Friday

8:00am - 5:00pm

Our location

Plot 123, Acacia Avenue Kololo, Kampala, Uganda

Call An Agent

+256782035017

Get Legal Help