In Bangladesh, cooperative societies are akin to community support systems, where individuals unite to enhance their economic and social well-being. It is like teamwork in action—they bring people together to support each other and grow financially. In Bangladesh, Cooperative societies play a big role in helping farmers, small businesses, and communities become self-sufficient. They operate in various sectors such as agriculture, banking, housing, transport, and women’s empowerment, benefiting millions of people.

Types of Non-Profit Organizations in Bangladesh

There are three major types of non-profit organization structures in Bangladesh, along with several other options for registering a non-profit or a social business:

1. NGO or NGO Registration – Registered under the NGO Affairs Bureau
2. Foundation, Society, and Association,  – under the Societies Registration Act
3. Non-Profit Company – Registered under the Companies Act, 1994
4. Trusts – Registered under the Trusts Act, 1882
5. Voluntary Social Welfare Organization – under the Department of Social Welfare 
6. Waqf – Registered under Waqf laws
7. Cooperative Society – Registered under the Cooperative Societies Act

Find the right business structure in Bangladesh: from sole proprietorship to limited company, with our registration guide.

A cooperative society in Bangladesh is governed under the Co-operative Societies Act, 2001, and regulated by the Department of Cooperatives, under Rural Development and Co-operatives Divisions  [https://rdcd.gov.bd/], under the Ministry of Local Government, Rural Development & Cooperatives. The key features of a Cooperative Society include:

Key Features of a Cooperative Society in Bangladesh

1. Legal Entity & Limited Liability: Once a cooperative society is registered, it is treated as a distinct legal identity. It can own property, Assets, enter contracts, and sue or be sued in its own name. It protects its members’ personal assets as the members’ liability is limited to their shareholding or contribution.

2. Voluntary Membership: Co-operative Societies are open to all individuals who can meet the eligibility criteria. There will be no compulsion to join or remain a member.

3. Democratic Control: It is usually managed through an elected committee by the members, where “one member, one vote principle” ensures equality and say in decision-making.

4. Mutual Benefit & Service-Oriented: Cooperative Society focuses on promoting economic and social well-being of its members. It can serve members by maximizing profits. 

5. Capital contribution: The members are the primary source of funding. Additionally, share capital, government grants (if applicable), and loans from financial institutions can also be sources of funds.

6. Surplus Distribution: keeping a portion of profit for cooperative development and welfare, and the rest usually are distributed among members based on participation, not capital investment.

7. Regulation & Compliance: Must comply with the Co-operative Societies Act, 2001, and relevant rules and regulations. However, Cooperative Societies are required to maintain books of accounts, conduct audits, and submit annual reports.

8. Dissolution & Winding Up: Cooperative society can be dissolved voluntarily by members or by compulsory action taken by the government due to mismanagement or violations. If dissolved, assets are used to repay liabilities, and remaining funds are distributed as per bylaws.

Types of Cooperative Societies in Bangladesh

Cooperative societies in Bangladesh are categorized based on their objectives, membership, and activities. The major types include:

1. Agricultural Cooperatives

Purpose: To assist farmers in improving agricultural productivity and marketing their produce. It gives access to government subsidies and agricultural inputs; ensures collective bargaining power for better pricing.  Examples: i. Krishi Samabaya Samity (KSS) – Provides seeds, fertilizers, and technical support to farmers. ii. Irrigation Cooperatives – Facilitate shared use of irrigation facilities.

2. Credit Cooperatives (Cooperative Banks): Provide small loans and financial assistance to members, often in rural areas. E.g. Rural Credit Cooperatives – Offer low-interest loans to farmers and small businesses.
3. Consumer Cooperatives: Supply essential goods at reasonable prices by eliminating middlemen, and Reduces cost of essential goods. E.g. Bazaar Samabaya Samity – Operates fair-price shops for consumers, or Cooperative Supermarkets – Offer household items at lower prices.

4. Housing Cooperatives: Facilitate affordable housing solutions for members by ensuring Affordable land and housing options. E.g. Government Employee Housing Cooperatives – Provide subsidized housing for public sector employees.

5. Industrial and Handicraft Cooperatives: Support small-scale business, industries, artisans, and handicraft workers in production and marketing. E.g. Cottage Industry Cooperatives – Assist rural craftsmen in pottery, woodworking, and metalwork.

6. Fisheries Cooperatives: Support fish farmers and fishermen in sustainable fishing and aquaculture. E.g. Jele Samabaya Samity – Helps fishermen with boats, nets, and fair pricing for their catch.

7. Transport Cooperatives: Provide affordable and reliable transport services to the public and members. E.g. Rickshaw and Auto-rickshaw Cooperatives – Allow drivers to own and operate vehicles collectively.

8. Women’s Cooperatives: Empower women through self-employment, financial inclusion, and skill development. E.g. Women’s Handicrafts and Weaving Cooperatives – Support female artisans.

9. Multipurpose Cooperatives: Engage in multiple activities, including finance, trade, agriculture, and industry. E.g. Bangladesh Rural Development Board (BRDB) Cooperatives – Support a variety of rural development initiatives.

Cooperative societies in Bangladesh play a vital role in socio-economic development by promoting self-reliance, financial inclusion, and collective growth. They operate in various sectors such as agriculture, banking, housing, transport, and women’s empowerment, benefiting millions of people.

Would you like guidance on registering a specific type of cooperative or exploring government incentives for cooperatives? LegalBD can help you. Contact… 

Co-operative Society Registration in Bangladesh 

To register a cooperative society in Bangladesh, you must adhere to the guidelines set forth by the Department of Cooperatives under the Ministry of Local Government, Rural Development, and Co-operatives. Below is a detailed overview of the registration process:

1. Formation of a Provisional Committee:
   • Initiators: Identifying an organizer is necessary. There must be a group of at least 20 individuals who share common economic, social, or cultural interests come together to form a cooperative society.
   • Provisional Committee: A provisional committee is formed to oversee the initial activities and registration process.
2. Preparation of Necessary Documents:
   • Application Form: Complete the cooperative society registration form, which can be obtained from the Department of Cooperatives’ official website.
   • Bylaws: Draft the bylaws of the proposed society, detailing its objectives, membership criteria, governance structure, financial management, and other operational guidelines.
   • Member List: Prepare a list of all founding members, including their names, addresses, occupations, and signatures.
   • Feasibility Report: Develop a report assessing the viability of the cooperative, outlining the potential benefits to members and the community.
   • Financial stability: proposed budget for upcoming two years. Additionally, an undertaking that the society can run without the assistance from the government.
   • Minutes of the founding meeting
3. Submission of Application:
   • Registrar of Cooperative Societies: Submit the completed application form, along with all necessary documents, to the Registrar’s office in your respective district or division.
   • Application Fee: Pay the prescribed registration fee as stipulated by the Department of Cooperatives.
4. Verification and Inquiry:
   • Document Review: The Registrar’s office reviews the submitted documents to ensure they comply with the Co-operative Societies Act and related regulations.
   • Field Inquiry: An inquiry officer may be appointed to conduct a field investigation, verifying the authenticity of the information provided and assessing the cooperative’s feasibility.
5. Approval and Registration:
   • Registrar’s Decision: Based on the findings, the Registrar decides whether to approve the registration.
   • Certificate of Registration: Upon approval, a certificate of registration is issued, officially recognizing the cooperative society as a legal entity.
6. Post-Registration Requirements:
   • Commencement of Operations: The registered cooperative can commence its activities as outlined in its bylaws.
   • Compliance: The society must adhere to statutory requirements, including regular audits, annual general meetings, and submission of reports to the Registrar.

For comprehensive details, refer to the Co-operative Societies Act, 2001, and the Co-operative Societies Rules, available on the Department of Cooperatives’ website. These documents provide in-depth information on legal provisions, procedural requirements, and regulatory obligations pertaining to cooperative societies in Bangladesh.

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