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How to establish a cooperative and get the status of an agricultural cooperative

Step 1: It is necessary to unite at least 5 person around a common idea.

Step 2:  Formulate a charter, the cooperative chooses its management system - monistic or dualistic. In the monistic management system, the governing bodies of the cooperative are the general meeting and the board, and in the dualistic management system - the general meeting, the supervisory board and the board) (recommended form of the charter)

Step 3: Establish a cooperative in the Public Registry

If the management system of the cooperative is monistic, the application for registration of the cooperative in the Public Registry, must be accompanied by:

If the management system of the cooperative is dualistic, the application for registration of the cooperative in the Public Registry, must be accompanied by:

Step 4: Submitting an application for the status of an agricultural cooperative to the Rural Development Agency.

Application form for granting agricultural status.

The following must be attached to the application:

  • Extract from the register of entrepreneurs and non-entrepreneurial (non-commercial) legal entities, confirming the registration of the legal entity (cooperative) and the applicant’s authority;
  • If necessary, an extract from the public register confirming the ownership right of the   legal entity to agricultural land pot and/or property;
  • Copy of an identification document of a person having authority to represent;
  • A document confirming share contribution;
  • Agreement concluded by and between the shareholder and the agricultural cooperative on mutual obligations and rights, determining the type and cost of services to be provided by the cooperative to the shareholder, the economic participation of the shareholder, the amount of the shares and other terms and conditions.

 

According to the Law on Agricultural Cooperatives, the mandatory share contribution (value of one share) for cooperatives with status should be made only in the form of money in the national currency. The minimum number of members/ shareholders in cooperatives should be at least 5. 

Please follow the sample of charter below preferred/ acceptable for you and the attached protocols for the relevant charter sample (monistic management system/ dualistic management system when establishing a cooperative). The cooperative is established /registered in LEPL National Agency of Public Registry.

To obtain an agricultural status after the establishment of the cooperative, you should apply to NNLE Rural Development Agency by submitting relevant application and the following attached documentation (see examples below): 

  • Extract from the register of entrepreneurs and non-entrepreneurial (non-commercial) legal entities, confirming the registration of the legal entity (cooperative) and the applicant’s authority;
  • Copy of an identification document of a person having authority to represent;
  • A document confirming share contribution established by the charter (shares must be contributed individually by all shareholders by specifying shareholders. If all shares are contributed by one of the authorized persons, all the shareholders contributing shares must be specified separately); 
  • Agreement concluded by and between the shareholder and the agricultural cooperative on mutual obligations and rights, determining the type and cost of services to be provided by the cooperative to the shareholder, the economic participation of the shareholder, the amount of the shares and other terms and conditions;
  • If necessary, an extract from the public register confirming the ownership right of the   legal entity to agricultural land pot and/or property.  

 

In case of any changes in the number of shareholders, name of the cooperative, legal address, after registration and granting the status, please submit information about such changes to the Rural Development Agency, for making relevant records in the database of the Agency.