All You Need To Know Before Joining Cooperative Societies

There are various reasons why people think of joining cooperative societies. However, a few people get confused, overwhelmed, and stressed out about the processes required to join one.

Checklist for joining a cooperative societies

Before we look at how to get started when joining a cooperative society, let’s see what types of cooperative societies exist.

TYPES OF COOPERATIVE SOCIETIES

Cooperative societies are formed around roles they play in society. Different various types of cooperative societies are;

Farmers Cooperative Societies

These are associations of small farmers that come together to obtain the economies of large scale farming. They aim to gain the benefits of large scale farming and increase productivity.

Marketing Cooperative Societies

These types of cooperatives help small producers sell their goods, ensuring a steady market for their product.

Credit Cooperative Societies

These cooperative societies help to provide easy credit to the members as long as the terms are reasonable.

Producer Cooperative Societies

These cooperatives help the interest of small producers. These producers make goods and services based upon common ownership and management.

Consumer Cooperative Societies

They are the oldest form of cooperative. They protect the interest of consumers, provide services to the consumers, eliminate middlemen to achieve economy in operations.

Cooperative Housing Societies

These societies help people with limited income to build houses are reasonable costs. They aim to solve the housing problem of its members by building houses and allowing them to pay in installments.

From the above, we can see that a cooperative society is defined by the problems it has chosen to solve. One way to find the one that suits you is to identify what issue you are trying to solve and locate a cooperative society dedicated to solving that problem.

BENEFITS OF JOINING COOPERATIVE SOCIETIES IN NIGERIA

The benefits of joining cooperative societies are numerous. Here are some of them;

  • They help the members in developing a savings culture.
  • Cooperative societies enable members to get easy access to loans.
  • Helping build local enterprises and profits.
  • Creating decent jobs for individuals.

BASIC REQUIREMENTS FOR STARTING A COOPERATIVE

You may have tried joining cooperative societies but were not able to find one that meets your needs. The good news is that you can start one with a group of individuals like yourself. Generally, before individuals or groups of people start up any form of business or co-op, they must carry a feasibility analysis. Within that study this question amongst many arises;

How much does it cost to register a cooperative?

It costs Ten Thousand Naira (N10,000) to register a cooperative in Nigeria. After payment, you get a letter of recognition as a license for three years before you get a certificate of registration as a legal entity. There are laws/restrictions that govern how a co-op is in every country and for Nigeria, it is the Nigerian Cooperative Society Act. Under the Act, it is stated that a cooperative society can be registered if it;

  • Is a limited liability society
  • Has as its objects the promotion of the socio-economic interests of its members in accordance with co-operative principles
  • Shows to be established to facilitate the operation of those principles.

The Nigerian Cooperative Society Act is all the information you need to set your cooperative society according to the law. It also makes provision for Directors of Cooperatives as well. It states that they shall have a seal of such device as may be approved by the President, in the case of a Federal Director. In the case of a State Director of Co-operatives, the seal is approved by the State Governor and fully recognised by law.

HOW TO MAKE ANY COOPERATIVE SOCIETY WORK

Whether you proceed with joining a cooperative society or you create one for individuals like you, you need it to be efficient. One of the ways to do this is to ensure that you have the right manpower and tools to help you.

EasyCoop does this effortlessly.

Easycoop helps you make more from your cooperative by making management easy and fast due to automation and digitisation. Your new members can join a cooperative remotely by just being online and the management can get information about everything going on in the cooperative from where ever they are. This also helps to prevent expenses due to logistics. The 24-hour user support system and advanced data security protect your cooperative against fraud and unauthorized access.

You can visit www.myeasycoop.com or send an email to cxc@myeasycoop.com to find out more about how EasyCoop can be of benefit to an existing or about to be registered cooperative.

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