Co-operatives are usually formed by a group of people with shared goals or specific ethical reasons for wanting to set up in business together. Co-operatives differ from other types of commercial business because the profits or benefits of a co-operative are retained within the business or shared by its members rather than being distributed, for example to external shareholders or institutional investors. Social enterprises, community projects and not-for-profit organisations are often established as co-operatives.

This factsheet explains what a co-operative is and how to set up in business as a co-operative. It also includes details of legislation affecting co-operatives, along with information about support and funding available.