Co-operatives are defined by the International Co-operative Association as follows. “An autonomous association of persons, united voluntary to meet their common economic, social and cultural needs and aspirations, through a jointly owned and democratically controlled enterprise.”

 Several characteristics of co-operatives are given below

• An independent organization

• A group of voluntarily gathered individuals

• Collective ownership of members

• Having common needs and objectives

• A business with democratic control

Several advantages of co-operatives are given below

• Has democratic control

• Provides essential goods and services at fair prices

• Ability to do business in various fields.

• Mutual co-operation

Several disadvantages of co-operatives are given below

• Limited sources of funds

• Business activities have to be done according to co-operative policies

Co-operative societies are registered through the commissioner of Co-operative Development of the Co-operative Development Department under the co-operative development commissioner of the provincial council

The following documents should be submitted to the commissioner of co-operative development to register a co-operative society

• An application form

• Two copies of the interim constitution

• The feasibility report of proposed economic activities

. • The report of the annual general meeting at which the proposal to register the co-operative society was approved.

• A certificate from the working committee stating that the members who to signed the application had paid than membership fees and that the money is under the trust of the working committee.

• A map giving directions to the location of the society.

The following are the milestones of the evolution of the co-operative movement

1912 – Start of lending co-operatives

1942 – Extablisment of consumer co-operative societies.

1947 – Extablisment of the co-operative societies for agriculture production and distribution

1957 – Start of multi purpose co-operative societies

1971 – Restructuring of co-operatives

1992 – Amendment of co-operative societies
Policies of the co-operative movement

• Voluntary and open membership

• Democratic member control

• Social economic participation

• Autonomy and independence

• Co-operative education training and information

• Co-operation among local, national and international co-operatives

• Concern for society

Co-operative societies contribute to the economic development of the country in various ways.

Eg. Increasing the employment contributing to the national production through multi purpose co-operative socialities, manufacturing co-operative societies, Thrift credit co-operative societies and industrial co-operative societies

New trends can be seen in the co-operative movement within the current complex and competitive economy

Eg. Setting up of self service shops Stepping into new business fields