Registered cooperative (eG)
The legal form of the eG is both a legal form for founding teams and a cooperation model for midsize companies. It is suitable for cooperative business operations in solidarity. The objective of the eG is to support its members (minimum 3), e.g. by securing more favourable prices from large-scale procurement of materials or through the joint distribution of products to cut costs.
The basis of the business of an eG is a written charter. This charter also defines the amount of the contributions which every member must pay. Every member must underwrite at least one share. The liability of the members is limited to the amount of this contribution as a rule.
The eG must be entered in the Register of Cooperatives. In addition, the eG must become a member of the appropriate cooperative association.
Advantages
Limitation of liability. Members profit from support by the eG.
Disadvantages
Low profit orientation.
The legal form of the eG is both a legal form for founding teams and a cooperation model for midsize companies. It is suitable for cooperative business operations in solidarity. The objective of the eG is to support its members (minimum 3), e.g. by securing more favourable prices from large-scale procurement of materials or through the joint distribution of products to cut costs.
The basis of the business of an eG is a written charter. This charter also defines the amount of the contributions which every member must pay. Every member must underwrite at least one share. The liability of the members is limited to the amount of this contribution as a rule.
The eG must be entered in the Register of Cooperatives. In addition, the eG must become a member of the appropriate cooperative association.
Advantages
Limitation of liability. Members profit from support by the eG.
Disadvantages
Low profit orientation.