HOW TO SET UP /REGISTER A COOPERATIVE (SAVINGS AND CREDIT COOPERATIVE SOCIETIES (SACCOS) & MULTI-PURPOSE COOPERATIVES) IN UGANDA

HOW TO SET UP /REGISTER A COOPERATIVE (SAVINGS AND CREDIT COOPERATIVE SOCIETIES (SACCOS) & MULTI-PURPOSE COOPERATIVES) IN UGANDA

Law applicable include,

• Cooperative Societies Act 1991 Chapter: 112
• Cooperative Societies regulations 1992.
• Among others

A cooperative/ SOCIETY is association of persons who unite voluntarily with a common objective of meeting their economic, social, and cultural needs and aspirations through a jointly‐owned and democratically controlled enterprise.

Cooperatives can either be registered as savings and credit cooperatives (SACCOS), or multi-purpose cooperatives..

We have three kinds of cooperatives/society namely

1. PRIMARY SOCIETY/COOPERATIVE, this is a society where the membership consists of not less 30 individual persons
2. SECONDARY COOPERATIVE /SOCIETY this is society where membership consists of at least two registered primary societies among its members;

• APEX / A tertiary COOPERATIVE/SOCIETY this is society where membership consists of at least two (2) registered secondary societies among its members. the membership of which is restricted to cooperative unions and includes a society established to serve the cooperative movement by providing facilities for banking, insurance and the supply of goods or services;

For purposes of this post I am handling the procedure of Cooperatives (Savings and Credit Cooperative Societies (Sacco’s) & Multi-Purpose Cooperatives)

Below is how one may set up a SACCO OR MULTI PURPOSE COOPERATIVE

• Generate the idea of forming a co-operative/Sacco and sell it to at least thirty (30) people above the age of 12 years with a common goal.
• Convene a meeting of at least 30 members aged 12 years and above willing to form a co-operative/Sacco and elect the head committee that is a chairperson, vice chairperson, treasurer, secretary and two or more committee members.
• In the meeting, choose the type of society/cooperative you want, the location, the proposed name of the intended cooperative/Sacco and have it reserved at Registrar of companies.
• Thereafter recruit workers who will help in the day today running of the cooperation/Sacco
• All members should pay membership fees and deposit their share capital before applying for registration
• Obtain Recommendations from the District Commercial Officer (DCO) based on interim operation reports of cooperatives.
• Cooperative’s members should then open up a bank account for the cooperative during the process of registration.
• Get a model set of byelaws for multi-purpose cooperatives/Model byelaws for SACCOs from the Ministry of Trade, Industry and Cooperatives or District Commercial Officer (DCO) offices.
• Prepare financial statements, Schedule of paid up membership fees, Schedule of shares, Schedule of savings of the proposed cooperative and a recommendation.
• Get a registration application form at the Ministry of Trade, Industry and Cooperatives or District Commercial Officer (DCO) across the country And complete it according the country indicating;
  • Names of Applicants / members of the cooperative society to be registered
  • Contact addresses of Applicants / members of the cooperative society to be registered;
  • Nationality, sex, age and marital status of each member;
  • Proposed name of society; 5.Proposed activities of society;
  • Office location and contact address of society.
• Proceed and pay registration application fees as advised while picking it.
• After filling the application form, have it signed by the right persons that is for a primary society‘s application should be signed by at least thirty (30) persons qualified for membership of the society, IF a secondary, tertiary or apex society ‘s application should be signed by an authorized member for that purpose by each registered society.
• Attach all other required documents on the application and submit to District Commercial Officer (DCO) or if possible you can submit the same to Registrar of cooperatives.
• The registration application with all the attachments through the District Commercial Officer (DCO) is forwarded to The Registrar of cooperative societies Ministry of Trade, Industry and Cooperatives.
• When the registrar receives the application, he / she will review the application as far as compliance is concerned.
• Incase the registrar finds everything fine, he or she will register the cooperative/SACCO and its bye laws.
• The registered cooperative shall operate on probation for a given period, not exceeding twenty-four (24) months.
• .When the probation period expires and the Registrar of cooperatives is satisfied with the performance of the society, he or she will then Registers the cooperative permanently.
• However in cases where the Registrar of cooperatives is not satisfied after the probation period, registration may be cancelled or probation may be extended for some time not more than twelve (12) months.
• A certificate of registration signed by the Registrar of cooperatives is issued to the APPLICANTS upon registration.

approximate cost ugx 5000,000

Author is A regional transactions legal consultant (ADVOCATE) at NOA REGIONAL ASSOCIATED ADVOCATES AND LEGAL CONSULTANTS
Email address: onlinetransactionconsultancy@gmail.com.

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NOTE: whereas the author has made necessary efforts to ensure the accuracy of this post, it is not intended to provide specific legal advice to a particular individual as individual situations may differ.

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