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Diiwaangeli Ganacsi
Diiwaangeli Ganacsi

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SO

What is a Cooperative in Somali Law?

Under current Somali legislation, a cooperative is defined as an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.

Key Legal Characteristics:

  • Voluntary and Open Membership: Based on mutual benefit, not mandatory association.
  • Democratic Control: One member, one vote (OMOV) governance structure, regardless of capital contribution.
  • Economic Participation: Members contribute equitably to, and democratically control, the capital of their cooperative.
  • Autonomy and Independence: Self-help organizations controlled by their members.
  • Limited Dividend on Capital: Surplus is reinvested or distributed based on patronage, not capital share.

Legal Basis: Cooperative development is currently guided by the Cooperative Societies Law No. 70 of 1973 (as revised), supplemented by Federal Member State (FMS) regulations and MoCI directives. The government is actively working on a modernized National Cooperative Policy and a new comprehensive Cooperative Act.

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How to Register a Cooperative

MoCI has streamlined the registration process to encourage formalization and enhance access to finance and markets. Cooperatives register through the same digital portal as other businesses: ebusiness.gov.so.

Prerequisites for Registration:

  • Minimum Membership: A cooperative must have a minimum of ten (10) members.

  • Primary Objective: Must have a clear socio-economic purpose (e.g., input supply, processing, marketing).

  • Democratic Structure: Draft Bylaws must adhere to democratic principles and define leadership (Board, Supervisory Committee).

### Step-by-Step Registration Flow:

  1. Name Reservation: Log in to ebusiness.gov.so and reserve a unique cooperative name (e.g., ‘Hilaal Farmers Cooperative’).

  2. Upload Documents: Submit the required application form, the drafted Bylaws/Constitution, and a list of all founding members with valid identification (Passport/National ID).

  3. MoCI Verification: Ministry officials verify the Bylaws and ensure compliance with cooperative principles.

  4. Fee Payment: Pay the non-refundable registration fee via the integrated e-payment gateway.

  5. Certification: Upon approval, a digital Certificate of Registration is issued, officially recognizing the cooperative as a legal entity.

Directory of Registered Cooperatives

Transparency is essential for cooperative trust and partnerships. The Ministry of Commerce and Industry maintains a centralized, verifiable Directory of Registered Cooperatives.

This database is publicly accessible and provides key information to help members, buyers, and financial institutions verify a cooperative’s status.

### Directory Features & Search Capabilities:

  • Unique ID Verification: Enter a cooperative’s registration number (e.g., REG-COOP-00123) to confirm legitimacy.
  • Sector Search: Filter by economic activity (e.g., ‘Agro-processing’, ‘Marine Fisheries’, ‘Dairy’, ‘Handicrafts’).
  • Location Filter: Search for cooperatives registered by Federal Member State (FMS) (e.g., Banadir, Puntland, Galmudug, Jubaland, South West, Hirshabelle).
  • Status Tracking: Verify if a cooperative is active, suspended, or dissolved.
  • Core Contact Info: View essential details, including the registered address and sector.

Accessing the Directory: Log in to ebusiness.gov.so and navigate to the ‘Cooperatives’ module. Note that specific financial details and member lists are protected and visible only to authorized regulatory bodies and the cooperative’s designated leaders.

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