Quick answer: A co-operative is registered with CIPC under the Co-operatives Act. A primary co-operative must meet the statutory minimum membership requirements for natural persons, juristic persons or a combination. You adopt a constitution, often one of CIPC's model constitutions, and register online. Each director verifies their identity with an OTP, and payment is by card only. Once registered, a co-operative must hold an AGM and file its annual information with CIPC.
What is a co-operative?
A co-operative is an autonomous association of people who voluntarily join together to meet common economic and social needs, and who own and control the enterprise democratically. Common types include worker, agricultural, housing, financial and social co-operatives.
Co-operative vs company
| Co-operative | Private company – (Pty) Ltd | |
|---|---|---|
| Minimum founders | Statutory minimum membership for the co-operative type | Founder requirements under the Companies Act |
| Control | Democratic, usually one member one vote | By shareholding |
| Governing document | Constitution | MOI |
| Purpose | Members' common needs | Profit for shareholders |
| Law | Co-operatives Act | Companies Act |
If you're one or two people starting a business, a (Pty) Ltd is usually simpler. A co-operative suits a group that genuinely wants shared, democratic ownership.
Types of co-operatives by level
Primary co-operative: formed by members who meet the statutory requirements for a primary co-operative.
Secondary co-operative: formed by qualifying operational primary co-operatives.
Tertiary co-operative: formed by qualifying operational secondary co-operatives.
What you need
the full names, ID numbers, cellphone numbers and email addresses of all members and directors;
an approved name (see our company name reservation guide);
a constitution: choose the relevant CIPC model constitution and complete it, or prepare your own;
a CIPC customer code registered for co-operatives;
a card for payment. CIPC doesn't accept funds deposited into a customer code for co-operative registrations.
Step-by-step
Hold a formation meeting. Agree on the co-operative's purpose, members, directors and constitution.
Register as a CIPC customer for co-operative services.
Reserve the name.
Complete the online registration, capturing members, directors and the constitution details.
Directors verify with OTPs. Each director receives an OTP by SMS and email and must confirm it. The process doesn't support document uploads; verification is done through the OTPs.
Pay by card.
Receive the registration certificate. Processing depends on CIPC completing its registration checks.
After registration: ongoing obligations
Hold an Annual General Meeting (AGM) each year.
File annual information with CIPC within the statutory period after the AGM. Failure to file can lead to penalties and deregistration.
Keep proper accounting records and prepare annual financial statements, audited or independently reviewed as the Act requires.
Register with SARS for income tax, and for VAT, PAYE and UIF where applicable.
Register with the Compensation Fund if the co-operative employs people.
Frequently asked questions
How many people do I need to start a co-operative?
The statutory minimum depends on the co-operative type and whether its members are natural persons, juristic persons or a combination.
Can I pay by EFT?
No. CIPC only accepts card payment for co-operative registrations.
Do I need to upload documents?
Not for the online process. Directors verify their identities with OTPs.
Does a co-operative pay tax?
Yes. Co-operatives must register with SARS and meet their tax obligations.
Starting a co-operative?
Smartbook can help you register, set up proper books and handle your SARS registrations and annual filings, so your members can focus on the work. Email hello@smartbookie.co.za or contact us.
Last reviewed: 2 October 2026. General guidance, not legal advice.