There are many people who want to form a democratic association in order to provide their services to a specific community or society. However, not everyone knows how to start creating one, Here at Gestionalo we will tell you the requirements to form a cooperative in Argentina and how to create it.
It is usually recommended to have advice to carry out the creation of a cooperative institution, however the steps to follow to complete the application process is really simple. You will have to take into account that to form a cooperative team, you have to be organized all the time and have everything up to date.
On the other hand, cooperatives are extremely important associations within Argentina due to the demand they generate in jobs. Now, this type of undertaking require a lot of patience and the reconciliation of multiple legal procedures to finalize the construction of the corporate project.
Based on the above, you will have to organize your team and have recurring contact with the authorities that offer the validation and certification of the cooperative to be created. You will be able to obtain licenses to manage a cooperative meeting the necessary requirements which will be detailed in this article later.
Requirements to form a Cooperative in Argentina
When starting a cooperative, it is important to understand the big picture. These are the basic steps and requirements to help you develop a realistic idea of what it takes to start a cooperative and how to keep the development process running smoothly:
- Have papers about your identity (ID, passport, driver’s licenses, account statements)
- Stamped and verified birth certificate
- Capital invoice for the creation of the cooperative
- Have the complete application form
- Cooperative registration on paper
On the other hand, there are requirements that can only be requested by the state administration agency. However, to begin you will need the procedures that were mentioned. You will also have to organize an appointment schedule, since this process is usually carried out by meeting appointments. This to manage better time.
Unlike commercial ownership, which is based on the percentage of the business that one person owns, ownership in a cooperative is based on the contribution of capital. This is the main characteristic that distinguishes a cooperative business form from other organizational structures.
Although in terms of control, traditional corporations grant one vote for each share, allowing investors to buy as many shares as they want to get a certain number of votes. Since the investors request a registry of the votes to finance the group.
In a cooperative, each member is given only one vote, which gives each member the same voting rights. All members are expected to participate and share in the responsibility of managing the organization.
Legal documents to present
To finalize the creation of your cooperative, the association administration will request a series of documents to be processed to complete your application. However, these papers are mandatory and essential, do not attend a meeting appointment if you do not have these requirements:
- Have the presentation document.
- Possess the articles of incorporation and statute
- Distribution papers (by state)
- Invoice or deposit record
- Proof of having completed the attendance course
Once you have reconciled the documents required for the appointment, you will need to have the registration papers. You can find out about it by clicking here. You can also start creating the administrative management required to start working and thus generate income.
Now then We will mention some steps that you must follow to be successful in your endeavor:
Create an organization among the members for a very specific reason and that they meet regularly on a voluntary basis for their own interest.
You being a member of this society will have to create a savings fund for yours and the needs of other people where the society can grant loans and generate interest. This assistance is essential after completing the requirements to form a cooperative in Argentina.
Use of human resources
He has the concept that being a member of a family is being busy in his daily work, but now he can dedicate time to his own interest and development. With the use of these resources you can go far, you only have to use the tools obtained correctly.
How much does it cost to form a Cooperative in Argentina?
The costs to form a cooperative vary according to the role it will have in society. Nevertheless, they all have to make a down payment of approximately $ 3,000. The sum is expensive, so it would be advisable to start gathering and creating a fund so that when the time comes, you can make the payment.
On the other hand, you can request a bank loan offering some benefit or deal. In these cases, it is best to keep all bank accounts up to date with no debts or accounts payable. Since banks can be a source of temporary financing at some point in the life of the cooperative.
With the financing of the cooperative you will be able to respond directly to the needs of the community, tailored to local concerns. Since these are anchors that distribute, recycle and multiply local expertise, resources and capital.
Autonomous cooperatives reach the poorest people in the community, offering upward mobility and basic infrastructure ignored by large companies. Consumer cooperatives play a vital role in the distribution of food and basic resources in poor and rural areas.
Benefits of forming a Cooperative in Argentina
Creating a cooperative in the Latin country offers many advantages and versatility within the labor field. But for this you must bear in mind that some benefits are temporary and others permanent:
One of the greatest benefits of having a cooperative model in business is the democratic style of management. All member needs can be met without one person dominating the decision-making process. This type of structure generally makes the organization more stable.
Members can come and go without serious business implications. And due to the «one member, one vote» policy, all members are on an equal footing, regardless of how many shares they own.
2.Lower debt risk
The shareholders, directors and employees are not liable for the debts of the cooperative unless those debts are caused by negligence or fraudulent activities. Members’ liability is limited to the extent of their investment in the cooperative.
In general, each type of cooperative comes with its own set of economic advantages. For consumer cooperatives, members are entitled to receive sponsorship dividends, which are determined by the amount that members spend on their products.
Members who work within the cooperative are also qualified to obtain significant discounts on merchandise.
Since cooperatives are owned and controlled by their members, they enjoy more autonomy compared to investor-controlled companies. In addition, all members and shareholders must be active in the organization so that the workload can be divided almost equally.
The basic philosophy of cooperatives is mutual aid. Basically, cooperatives They help instill moral values among members for a better life. Promotes the spirit of tolerance, cooperation, and self-help. Although for this benefit you will have to complete the requirements to form a cooperative in Argentina.
How is the internal structure of a Cooperative in Argentina?
The internal structure of a cooperative it is based on having partners, directors, administrators and employees and the general public. It should also be noted that to comply with a firm and strong structure, a series of steps must be followed to reach the point of having all the positions working.
In this case, they will be detailed the steps to follow to complete the structure and start working:
Establish a steering committee
You should have a group of people who represent potential members of the cooperative. Identify your mission and core values. Develop a plan and timeline for researching and developing the organization. Set up a meeting of potential members to test the level of interest in the cooperative idea.
Carry out a feasibility study.
Examine the critical opportunities and obstacles that can make or break organizational formation. Consider common challenges such as market issues, operating costs, and the availability of financing.
Create a business plan and recruit more members
Prepare a detailed business plan that will serve as a blueprint for the organization’s initial development and operation and as supporting documentation for members, financial institutions, and investors. The plan must be carried out after fulfilling the requirements to form a cooperative in Argentina.
Whatever the goal of your cooperative and whoever the members are, it will likely require money to allow the business to function and grow. This cash injection can come from a variety of sources. Most of the time members invest part of their own money.
Establish an office and hire staff if appropriate. Then open the doors and start providing goods and services in response to member needs. At this stage, you should have a viable business up and running.
What is a Work Cooperative?
A work cooperative is an organization owned and controlled by the people who use the products or services the business produces. Cooperatives differ from other forms of business because they operate more for the benefit of the members, rather than making a profit for the investors.
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