COOPERATIVE SOCIETY

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The Cooperative Society is a legal form in which several people associate freely and voluntarily to carry out business activities that meet their needs and aspirations both economically and socially. Its structure and management are fully democratic. This type of cooperative must have a minimum of three members, and the initial share capital will be that which these same members specify in the articles of association of the new company. In this case, unlike the joint stock company, the minimum share capital must be paid in in full at the time of incorporation of the new company. But, as in the previous cases, the liability of the partners will be limited to the capital contributed.

There are many subsidies and grants for cooperatives as they are considered to be part of the social economy, which is to be promoted.

ADVANTAGES OF SETTING UP YOUR COMPANY AS A CO-OPERATIVE SOCIETY IN SPAIN

• Worker participation: Cooperative societies allow workers to actively participate in the management and organisation of the enterprise, which can improve their motivation and commitment.
• Self-management: Cooperative societies allow workers to make decisions and manage the enterprise autonomously, which can improve the efficiency and effectiveness of the enterprise.
• Solidarity: cooperative societies foster solidarity among workers, which can improve the working climate and the cohesion of the enterprise.
• Increased employment generation capacity: cooperative societies have a greater capacity to generate employment, as they can hire more workers and expand their business activity.
• Greater stability: cooperative societies tend to be more stable, as they have a stronger and more stable organisational structure.
• Greater transparency: cooperative societies have greater transparency in their management, which can be an advantage in terms of trust and credibility with suppliers, customers and other stakeholders.
• Increased adaptability: cooperative societies have a greater capacity to adapt to change, which can improve their competitiveness and efficiency.

In short, cooperative societies offer a number of advantages that can be very useful for entrepreneurs and workers. Therefore, if you are considering setting up a business, it is important that you consider the possibility of creating a cooperative society.

Disadvantages of setting up a cooperative society in Spain:

1. Increased complexity: Cooperative societies are more complex than other forms of enterprise, requiring more legal and fiscal knowledge for their creation and management.
2. Higher cost: cooperative societies require higher costs in terms of registration, compliance and taxation.
3. Increased bureaucracy: cooperative societies require more bureaucracy in their management, which can be an obstacle to quick and efficient decision-making.
4. Increased dependence on partners: cooperative societies are more dependent on the members, which can be an obstacle to the management of the enterprise in case of absences or conflicts between members.
5. Difficulties in attracting new partners: co-operative societies may have difficulties in attracting new members, as they require greater member involvement and commitment.
6. Difficulties in expanding the activity: cooperative societies may find it difficult to expand their activity, as they require greater involvement and commitment of members.
7. Increased pressure from partners: cooperative societies are subject to increased pressure from members, which can be an obstacle to long-term decision-making.

In summary, cooperative societies have a number of disadvantages that may be relevant for entrepreneurs and workers. Therefore, it is important that you carefully consider both the advantages and disadvantages before deciding to set up a business as a cooperative society.

The cost of setting up a cooperative society in Spain depends on several factors, such as the number of members, the share capital, the complexity of the statutes and the need to contract professional services.

IN GENERAL, THE COST OF SETTING UP A CO-OPERATIVE SOCIETY INCLUDES THE FOLLOWING EXPENSES:

• Fees of lawyers or tax advisors: it is advisable to engage a lawyer or tax advisor to assist in the creation of the cooperative society and in the fulfilment of legal and tax obligations.
• Company registration: the registration of the cooperative society in the Commercial Register and with the Labour and Social Security Inspectorate has a cost that varies depending on the requirements and formalities necessary.
• Share capital: The minimum share capital to create a cooperative society is 60 euros, although this amount can be higher depending on the needs and objectives of the company.
• Insurance: it is necessary to take out civil liability and accident insurance for the employees of the cooperative society.
• Taxes: it is necessary to pay taxes on the creation of the cooperative company, as well as taxes on the activity and income of the company.

In summary, the cost of setting up a cooperative society can range from 500 to 1,000 euros, although this amount can vary depending on the factors mentioned above. It is therefore important that you carefully consider the costs before deciding to set up a cooperative society.