Cooperatives in Spain: principles, requirements and perspectives
A cooperative is a company formed by people who associate, on a basis of free membership and voluntary withdrawal, to carry out business activities, aimed at satisfying their economic and social needs and aspirations, with a democratic structure and functioning.
The name of the company must bear the words “Cooperative Society” or its abbreviation “S.Coop.”. Cooperative societies can take the form of first and second degree cooperatives.
The main characteristics of cooperatives in Spain are:
- The possession of their own legal personality distinct from that of their members.
- The partners do not respond with their assets in solidarity to the debts incurred by the company.
- Members have the right to vote at assembly meetings.
- Cooperatives are formed by means of a public deed.
- The cooperative society has the name of the company accompanied by the name “Cooperative Society”.
- A minimum capital must be established in the constituent statute by each of its members
Cooperatives have been developed in multiple sectors such as agriculture, commerce, tourism or also fishing. Some of the most important cooperatives in Spain are Mondragon, Covirán and Consum.
For a cooperative to be created, certain requirements must be met and an established process must be followed. To begin with, people who are interested in creating a cooperative must meet and agree on the statutes that will govern its operation.
Once those statutes have been approved, a series of administrative procedures must be carried out, such as registering in the corresponding cooperative register and obtaining the tax identification number. It must be added that the cooperative must have a minimum social capital that can vary depending on the type of cooperative and the sector in which it operates.
Cooperatives can face various challenges, as they are in competition with large companies, and they can also suffer from a lack of funding and resources for their development.
In short, cooperatives can be an excellent alternative for the economic and social development of certain communities and sectors. Therefore, they can be an option to consider for those looking for a different way of engaging and organizing business.
