Classification

Three types of cooperatives

Cooperatives are specifically classified according to their dimension and objectives. There are three types:

• single or 1st degree: these provide services directly to their members, and are comprised of at least 20 individuals. Private entities engaged in the same or similar activities as individual members are not allowed;
• central, federation or 2nd degree: these aim to organize and expand the services provided by member entities, facilitating the reciprocal use of their services. Comprised of at least three single cooperatives, in exceptional cases individuals may be admitted as members;
• confederation or 3rd degree: these aim to further organize and expand members' services. Three central cooperatives and or federations in any area of activity are the minimum needed to set up a federation.