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Class : 11
Unit : Business

Describe the process of registration of co-operatives in Nepal.

Ans : Cooperative organization is the voluntary association of a person having limited means and economic objectives. In Nepal, cooperative society should be registered in accordance to cooperative act 2048 BS. For registration, it is essential to complete some documentation and government procedure. The following produce are explained below:- (i) Preliminary consultation and meeting:- It is the process for the establishment of cooperative society. All the members have to discuss about pre-requisites for the formation of a Cooperative and its future plan. According to the Cooperative Act 2048 BS, there should be at least 25 members to form a cooperative society. Preliminary meeting must be held before applying for the registration. They have to manage a meeting to discuss about various elements of the Cooperative like its name, address, area of operation, objective, working procedure, capital structure, membership fees and registration procedure. (ii) Application for registration:- For registration of the society, an application must be submitted to the registrar of the department of cooperative. The applicants have to fulfill all the information in application. Generally following detail must be mentioned in the form: a) Name of the proposed society or Union b) Address of the proposed society c) Its objectives d) Area of operation e) Responsibility and accountability f) Total capital structure etc. Along with application, members need to submit following document to the department of registrar: a) Two copies of bylaws of the concerned society b) Statement of work plan c) A statement of shares which the member are agreed to subscribe. d) Personal statement and specimen signature of at least 25 members and at least copies of their citizenship certificate e) Banking batches of registration fee (iii) Investigation of application:- The registrar of the department of cooperative conducts necessary investigation to ascertain whether or not the bye laws of society or Union confirm to the Cooperative principles. In case register find some issue in the bye laws of society, it may provide notice for amendment to the applicants within 15 days. (iv) Certificate of Registration:- After registration of the name of the society, the register issues certificate of registration as prescribed in Cooperative act. After getting registration certificate society can perform economic activity in its own name informal way. For the co-operative those who want to involve in financial activity like accepting saving and lending money has to follow on rules and regulation in acted by Nepal Rastra Bank.