Cooperative or collective (coöperatie)

A coöperatie or cooperative is a collective of members who pool their resources, such as finances, equipment, manpower or marketing, for a greater group benefit. Examples of cooperatives include dairy farmers, freelancer collectives and design studios.

Cooperatives must be established by notarial deed and registered at the KvK, and members of a cooperative can work independently or together. Management is done via the general meeting of members (ALV or Algemene Ledenvergadering) and via an appointed board. Running costs are divided between members, as are profits, depending on standing agreements and on individual turnover.

A cooperative can also include mutual insurance societies (onderlinge waarborgmaatschappij).

The coöperatie in a nutshell

• Establishment: Notarial deed of establishment
• Capital required: None, notarial costs
• Governance: General meeting of members
• Liability: Private, unless a cooperative with limited or excluded liability is established
• Taxation: Corporate income tax on profits, income tax for individual members, and BTW