This Info-Guide is designed to help you navigate through the federal and provincial government programs, services and regulations that may be of interest to individuals seeking information on co-operatives.
A co-operative is owned by an association of persons seeking to satisfy common needs (access to products or services, sale of their products or services, employment, etc.).
This association includes one or more kinds of users or stakeholders in the enterprise, such as:
Co-operatives operate democratically (one person, one vote) through two bodies: general meetings of the members or delegates, and the board of directors, at least two-thirds of whom are members elected at a general meeting. The delegate structure may reflect the size of the organization or the distance covered by the co-operative and include more than one delegate for each organization or territory represented.
The co-operative's start-up capital usually comes from co-operative shares purchased by members. Federal co-operatives, however, can raise capital by issuing investment shares to members or non-members.
Each member's liability is limited to the amount of his or her share in the capital. Each member has only one vote regardless of his or her capital contribution.
The purpose of a co-operative is both economic and social. It may include, for example, social development or local economic development through job creation or the provision of goods and services that would be otherwise unavailable.
All co-operatives are guided by the same general principles as stated by the International Co-operative Alliance. These principles are:
Step 1: Assemble a group of interested people
Step 2: Conduct a feasibility study
Step 3: Hold an organizing meeting
Step 4: Conduct a viability study
Step 5: Organize the association
Step 6: Organize the enterprise
Step 7: Hold the initial general meeting
A business plan is a document providing a complete description of the co-operative enterprise you wish to form. It describes in detail the products or services that will be produced or sold, the organization of work and the management approach, the results of the market study and the marketing plan, the characteristics of the paid and unpaid human capital (the members), equipment and material needed, financing requirements and the financing plan.
For further information:
visit the web site
Developing the Business Plan of a New Co-operative
A co-operative may be formed in accordance with:
All co-operatives in Canada are incorporated under federal or provincial co-operative legislation. The degree of supervision and guidance offered to co-operatives varies from province to province. The federal statute and some provincial statutes recognize two kinds of co-operatives:
For further information:
see the document
Articles and Bylaws Regarding Cooperatives
The Co-operative Corporations Act (CCA) is administrated by the Financial Services Commission of Ontario and governs the incorporation of Ontario co-operatives. If your business is only operating in Ontario then you must register your organization provincially. In Ontario, all co-operatives must file for incorporation with the Financial Services Commission of Ontario, Licensing and Enforcement Division of the Ministry of Revenue. Provincial incorporation will not protect your corporation’s name or trademark outside of the province. If you are planning to conduct business outside of Ontario you will be required to apply for Federal incorporation.
The process of business incorporation has three major elements.
Step 1: The first element is the name search; a professional search house must perform the name search. The name search report or NUANS (Newly Automated Name Search) report confirms that the name chosen for the co-operative does not already exist, and that no one else has a business or registered trademark with a name the same as, or similar to, the one you have chosen. You can find listings of these firms in your local phone book under the heading Searchers of Records.
Step 2: Articles of Incorporation are then completed and filed with the Financial Services Commission of Ontario, Licensing and Enforcement Division of the Ministry of Revenue. These are official documents required for incorporation that state the co-operative's name, purpose, share structure, directors and incorporators, and must be approved by the government before you can do business under that name.
Step 3: The final element is the fee to file your application for incorporation that can vary based on your organizations structure. Please contact the Financial Services Commission of Ontario for specific information regarding fee structures.
For further information:
please call 416-226-7776 (FSOC)
visit these web sites:
Co-operatives Secretariat
How to Register a Co-operative
see the documents:
Registration of a Cooperative
Articles and Bylaws Regarding Cooperatives
Cooperative Glossary
Filing Requirement and Record-Keeping outlines the routine information that co-ops send to FSCO, such as annual financial statements. This guide also describes the records that the Co-operative Corporations act requires co-ops to keep.
For further information:
visit the web site:
Filing Requirement and Record-Keeping (PDF)
The Canada Cooperatives Act governs the incorporation of federal cooperatives. Cooperatives are business organizations owned by the members who use their services. They are a separate legal entity which may enter into contracts in their corporate name. Generally, each member of a cooperative is entitled to one vote. Surpluses are shared by members in proportion to the degree they use the services. The members elect the board of directors and decide what should be done with any profit that is generated in the coop.
To apply for incorporation, at least three persons, or one or more federation, must send the Director, appointed under the Canada Cooperatives Act, the following:
For further information:
visit the web site:
Canada Cooperatives Act
You can also complete and file documents online (via Internet) and pay electronically in a secure environment through the Online Filing Centre.
For further information:
visit the web site:
Corporations Canada Online Filing Centre
Online filing offers many benefits:
You can pay using your Visa®, Mastercard® or American Express® credit card. All transactions are secure.
Online filing is optional. It provides you, as well as the Director, with more options for sending or issuing documents under the CBCA.
For further information:
please call 1-800-333-5556
visit the web site:
Corporations Canada - Where to Start?
see the document
Federal Co-operatives
Co-operatives in general will be subject to the same taxes as other business types and potentially fall into one of these categories: Producer, Consumer, or Worker with a Corporation Return form filed within 6 months after the end of each fiscal year. Incorporated organizations are required under the Income Tax Act to file a T2 or T2 Short return, and all corporations doing business in Ontario are required to file a separate tax return with the Ministry of Revenue. Information provided here is simply a general guide and you should consult with an accountant or financial professional for more specific information regarding the tax requirements for your organization.
For further information
please call 1-800-263-7965
visit these web sites:
Canada Revenue Agency (CRA) - Corporations
see the documents:
Taxation Info-Guide
Income Tax Returns - the T2 Corporate Income Tax Return and the T2 Short Return
The T2 return is the form which all corporations have to file every tax year even if there is no tax payable.
TheT2 Corporation Income Tax Return is an eight-page return that serves as a federal corporation income tax return.
The T2 Short is a two-page return designed for small, non-taxable corporations with a gross annual income of $500 000 or less. The T2 Short return is a simpler version of the T2 Corporation Income Tax Return.
The Co-operative Development Initiative (CDI) is a program designed to enhance the quality of life in Canada through supporting the development of co-operatives in areas of federal priority.
The Advancing Canadian Agriculture and Agri-Food (ACAAF) program is a five-year, $243 million program aimed at positioning Canada's agriculture and agri-food sector at the leading edge to seize new opportunities.
AMPA offers two programs to assist producers and marketing agencies to market their commodities/products: the Advance Payments Program and the Price Pooling Program.
The Co-operatives Secretariat is an agency established in 1987 to help the federal government respond more effectively to the concerns and needs of co-operatives.
For further information:
please call 613-759-7194
visit the web site
Co-operatives Secretariat
see the document
Co-operatives Secretariat
Click:
Canada-Ontario Business Service Centre
Call: 1-800-567-2345
Visit: visit our
Regional Access Program Locations page
to locate an office near you
DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.
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