Register a co-operative business in Ontario can be one of the most rewarding business ventures. Co-operatives, more commonly called co-ops, are other business structures with democratic control and collective benefit. We will cover the basic steps involved in registering an Ontario co-op on this post so that you have everything you need to make your co-operative a success.

Understanding Ontario Co-op

Cooperatives are organizations owned by members, controlled by members, and conducted for mutual benefit. They can operate within agriculture, retail, housing, or social welfare. Unlike the conventional business enterprise whose main focus is profit maximization, co-operatives emphasize community concerns and sustainable practices.

Key Principles of Co-operatives

  • Voluntary and Open Membership: Membership in the cooperative shall be voluntary and open to all persons willing to accept the responsibilities of membership, without gender, social, racial, or political discrimination.
  • Democratic Member Control: Cooperatives are democratically owned by the members and, in turn, controlled on the principle of one member, one vote.
  • Member Economic Participation: Members have equal equities in the capital of the cooperative and democratically control the use thereof, as well as receiving service and surplus from that capital.
  • Autonomy and Independence: Cooperatives are self-help organizations governed by their members.
  • Education, Training, and Information: Co-ops are concerned about the education and training of their members in order to make them productive.
  • Co-operation Among Co-operatives: Co-ops serve members best, and further the co-operative movement best by taking co-operative action jointly.
  • Concern for Community: Co-ops work for the sustainable development of their communities through policies approved by their members.

Types of Ontario Co-ops

Cooperatives in Ontario can be classified in terms of purpose and focus of operation as follows:

  1. Consumer Co-operatives
    These Ontario co-ops are owned by the customers who purchase goods or services from the co-op. Examples include grocery co-ops and retail outlets.
  2. Producer Co-operatives
    Many of these Ontario Co-ops are formed by producers of goods or services, such as farmers or artisans who are seeking to improve their market access and enhance their bargaining power.
  3. Worker Co-operatives
    In worker co-ops, the employees are also the owners, sharing in decision-making and profits. It forms a strong potential for community and responsibility.
  4. Housing Co-operatives
    An Ontario co-op offers its residents both reasonable and affordable housing options.
  5. Multi-Stakeholder Co-operatives
    The different stakeholders in these Ontario co-ops, that is, consumers, workers, and producers, try to satisfy the needs for which the co-op came into being.

Benefits of Starting a Co-op

What are the advantages of starting an Ontario co-op? Some of the advantages include:

  1. Community Driven
    Ontario Co-ops, by nature of their built-in structure, would serve needs that exist within one community only, thus enabling members to make positive and personal differences in the local economies.
  2. Resources to Share
    Resources are pooled by members, possibly reducing costs and increasing access to goods and services.
  3. Economic Resilience
    Ontario Co-ops are also more resilient during economic recessions due to their orientation toward member welfare rather than profit maximization.
  4. Democratic Control
    Members have the right to say about the operation of the Ontario co-ops and inspire the creation of particular ownership and responsibility.
  5. Access to Finance
    Keeping this in mind, Ontario co-ops may be eligible for many grants, loans, and other funds that specifically cater to cooperative businesses.

Step-by-Step Guide to Registering an Ontario Co-op

There are a number of important steps to incorporate an Ontario co-op. Here is some helpful guidance to ensure you are on the right track.

  1. Naming Your Co-operative
    Your Ontario co-op’s name has to be original, different from others that are similar. It also has to include either “Co-operative” or “Co-op” as part of the name so that quickly, it will be identified as a co-operative business. You will have to do a name search through the Ontario Business Registry and confirm that the name you want is available.
    You can conduct a name search here:
  2. Articles of Incorporation
    The Articles of Incorporation outline the structure of the co-op, including the name, purpose, and the rules for governance. You are required to adhere to the Co-operative Corporations Act of Ontario while writing the Articles. The following is an important aspect of the articles:
    – Co-op name and address
    – Purpose of the co-op
    – Board of directors structure
    – Membership eligibility
    – Profits distribution
  3. Business Planning
    Your Ontario co-op will require a sound business plan. This ought to include a statement of your co-op’s mission, market analysis, operational plan, financial projections, and strategies for member engagement and growth. A proper well-thought-out plan can also help attract funding.
  4. Hold an Organizational Meeting
    Organize a meeting with your founding members for discussing the purpose of the Ontario Co-op, its vision, and how it is supposed to be organized. In this meeting, members can approve the Articles of Incorporation and adopt bylaws that will determine how the co-op is to operate.
  5. Filing the Articles of Incorporation
    Having the Articles of Incorporation and bylaws prepared, you can then proceed to apply to Ontario Ministry of Government and Consumer Services. You will be expected to lodge the following:
    – Application form duly completed
    – Articles of Incorporation
    – Statutes
    – Fee payment: Check the current fee structure on the Website of the Ministry
  6. Obtain Licenses and Permits
    Licensing or permits may be required by the nature of activities your co-op will undertake. Research local regulations that impact doing business in your area.
  7. Tax Registration
    If your co-op is going to collect sales tax, or if you think that your co-op will exceed the income threshold, then you will need to register for a BN through the CRA. This registration is going to be about taxes and compliance.

Funding Options for Your Co-op

Finding sufficient capital is an important part of starting your co-operative business. Below are some funding options to look out for:

  1. Members’ Contributions
    Capital contributions by members Capital can be contributed to the co-op by the members. These contributions can offset some start-up costs. Make sure these contributions conform to your co-op’s bylaws.
  2. Grants and Loans
    There are a number of organizations and government programs providing grants and loans especially for co-operatives. These include the Ontario Ministry of Agriculture, Food and Rural Affairs and the Canadian Co-operative Association.
  3. Crowdfunding
    Crowdfunding sites are an equally brilliant path to raising money in your very own community by showcasing your vision and mission to potential backers.
  4. Co-operative Development Funds
    There are some credit unions and cooperative associations who have funding available to promote the development of new co-ops.
  5. Investment made Locally
    Meet with potential local investors that are interested in diversifying their portfolio with socially responsible, community-based business ventures. Prepare an elevator pitch of why they should invest in your co-op.

Ongoing Compliance and Governance

Complying with the law is one thing, but once an Ontario co-op is registered, keeping out of trouble with the law and complying with good governance means:

  1. Regular Meetings
    Regularly have meetings with members to discuss the performance of the co-op, including decision-making and community building. Be transparent, keep members in the know.
  2. Financial Reporting
    Preparation and maintenance of proper books of account, with the aim of ensuring that the organization has transparency and has managed to gain the confidence of the members. Needless to say, the employment of accounting standards set by Co-operative Corporations Act.
  3. License and Permit Renewals
    Renew all licenses and permits when timely. Keep yourself updated regarding changing regulations that may affect your cooperative.
  4. Continuing Education
    Provides education and training for members with more knowledge about co-operative principles, enabling them to participate actively in, or make valued contributions to, the co-op.

Conclusion

Registration of an Ontario co-op can be a rewarding way to start a business that serves your community while promoting democratic control and shared responsibility. If you follow the steps within this guide, you will be well on your way to launching a successful co-operative business. Remember, through challenges and opportunities of co-op life, collaboration with sustainability can go along with many member engagements.

If it is time to begin your journey into the Co-operative World, collate your founding members and initiate the process of registration now. Let your co-operative play a meaningful role in service delivery as well as building social and economic resilience for your community over the coming years.