Setting up a cooperative: an online step-by-step guide

Introduction

Setting up a cooperative is a significant step in the entrepreneurial journey. In Quebec, the cooperative society is a form of enterprise distinguished by its democratic operation and its focus on meeting the needs of its members. This article presents a detailed guide to setting up a cooperative society in Quebec.

What is a cooperative society?

A cooperative is a business owned and managed democratically by its members, who use its services. Each member has one vote, regardless of the number of shares they hold in the cooperative. This means that the cooperative is managed fairly, and that profits are distributed among members according to their use of the cooperative’s services, not according to their investment.

Legal definition of a cooperative society

According to Quebec legislation, a cooperative society is a legal entity, distinct from its members, whose purpose is to meet the economic, social and cultural needs of its members on the basis of cooperation and reciprocity. Members of the cooperative contribute to its capital and use its services.

Considerations specific to Quebec

In Quebec, cooperative societies are governed by the Cooperatives Act. In addition, they must comply with certain obligations, notably with regard to language, taxes and annual declarations.

Characteristics of a cooperative society

A cooperative society differs from other forms of enterprise in a number of ways. Firstly, it is owned and managed by its members. This means that decisions are taken democratically, with one vote per member.

What’s more, a cooperative society aims to meet the needs of its members, not maximize profits. Profits are reinvested in the cooperative or distributed to members in the form of patronage dividends, depending on their use of the cooperative’s services.

Finally, a cooperative society fosters solidarity and cooperation among its members. It is based on the values of democracy, equality, equity and solidarity.

Steps to launch your cooperative society

1. 1. Define the cooperative project: It’s important to clearly define the cooperative project, identifying the needs the cooperative will meet and the services it will offer its members.

1. 1. Choose the name of the cooperative: The name of the cooperative must be unique and not already used by another company. You can check the availability of the name on the Registraire des entreprises du Québec website.

1. 1. Draft the cooperative’s articles of incorporation: The cooperative’s articles of incorporation define how it will operate, including members’ rights and obligations, decision-making rules, etc.

1. 1. Incorporate the cooperative: To incorporate the cooperative, you must complete the Declaration of Incorporation of a Cooperative form, available on the Registraire des entreprises du Québec website, and pay the required fees.

1. 1. Register with Revenu Québec: This step enables Revenu Québec to identify you as a cooperative.

1. 1. Obtain a permanent clicSÉQUR – Entreprises authenticator: This authenticator will enable you to access the Quebec government’s online services.

Conclusion

Creating a cooperative society in Quebec may seem complex, but with the right information and preparation, the process can be simplified. By following the steps outlined above, you can create your own cooperative society and take advantage of the many benefits it has to offer. Good luck in your cooperative adventure!

Please note that this article is a general introduction to setting up a cooperative society in Quebec. For advice specific to your situation, we recommend that you consult a lawyer or business advisor.