Co-operatives in general are based and operate on 7 co-operate principles:

1. Voluntary Membership
2. Democratically Controlled
3. Economic Participation
4. Autonomy and Independence
5. Co-operation among Co-operators
6. Continuous member education
7. Concern for community

• Co-operatives are community enterprises
• Co-operatives promote democracy
• Co-operatives build open markets
• Co-operatives raise human dignity
• Co-operatives are systems for development

The Act provides for the registration of the following forms of co-operatives:

•  ‘‘primary co-operative’’ which is a co-operative formed by a minimum of five natural persons whose object is to provide employment or services to its members and to facilitate community development;
• ‘‘secondary co-operative’’ which is a co-operative formed by two or more primary co-operatives to provide sectoral services to its members, and may include juristic persons;
• ‘‘tertiary co-operative’’ which is a co-operative whose members are secondary co-operatives and whose object is to advocate and engage organs of state, the private sector and stakeholders on behalf of its members, and may also be referred to as a co-operative apex;
• ‘‘Agricultural Co-operative’’ - a co-operative that produces, processes or markets agricultural products and supplies agricultural inputs and services to its members;
• ‘‘Consumer Co-operative’’ - a co-operative that procures and distributes goods or commodities to its members and non-members and provides services to its members;
• ‘‘Social Co-operative’’ is a non-profit co-operative which engages in the provision of social services to its members, such as care for the elderly, children and the sick;
• ‘‘Worker Co-operative’’ means a primary co-operative whose main objectives are to provide employment to its members, or a secondary co-operative providing services to primary worker co-operatives
• ‘‘Services Co-operative’’ means a co-operative that engages in housing, health           care, child care, transportation, communication and other services;
• ‘‘Marketing and Supply Co-operative’’ means a co-operative that engages in the supply of production inputs to members and markets or processes their products, and  also includes an agricultural marketing and supply co-operative;
• ‘‘Housing Co-operative’’ means a primary co-operative which provides housing to its members, or a secondary co-operative that provides technical sectoral services to primary housing co-operatives;
• ‘‘Co-operative Burial Society’’, means a co-operative that provides funeral benefits, including funeral insurance and other services to its members and their dependants;
• ‘‘Financial Services Co-operative’’ means a primary co-operative whose main objective is to provide financial services to its members or a secondary co-operative that provides financial services to a primary co-operative.

• Before a co-operative can apply for registration, there must at least be one preliminary meeting of interested persons
• The persons present at this meeting must adopt the constitutions of the co-operative and elect the first directors of the co-operative
• After this meeting, the group must then submit an application for registration to the Registrar of Co-operatives
• The minimum number of members who must support the application is different for different levels of co-operatives:
• Primary co-operative – at least five people
• Secondary  co-operative – at least two primary co-operatives
• Tertiary co-operative – at least two secondary co-operatives

According to the Co-operative Banks Act No.40 of 2007 a "co-operative bank" means a co-operative registered as a co-operative bank in terms of this Act whose members—

• are of similar occupation or profession or who are employed by a common employer or who are employed within the same business district; or
• have common membership in an association or organisation, including a business, religious, social, co-operative, labour or educational group; or
• reside within the same defined community or geographical area;

Types of Co-operative Banks

• A Primary Savings Co-operative Bank;
• A Primary Savings and Loans Co-Operative Bank;
• A Secondary Co-operative Bank; and
• A Tertiary Co-operative Bank.

Application for Registration as Co-operative Bank

•  A co-operative must apply, on the application form prescribed by the supervisor, to the supervisor for registration as one of the types of co-operative banks referred above
• The following must be submitted together with the application
  • Two certified copies of the constitution of the proposed co-operative bank;
  • A certified copy of the registration certificate as a co-operative under the Co-operatives Act of the proposed co-operative bank;
  • The full and abbreviated name of the proposed co-operative bank as well as any literal translation thereof;
  • A lending policy, if applicable;
  • A Savings Policy
  • A business Plan
  • Certified copies of the registers referred to in the Co-operatives Act
  • The postal and physical address of the proposed co-operative bank and a statement describing the suitability of the premises from which the proposed co-operative bank will operate
  •  The application fee prescribed by the supervisor

Banking Services Provided by Co-operative Banks

 Primary Co-operative Bank

A primary savings co-operative bank may only provide, participate in or undertake the following banking services:

• Solicit and accept deposits from its members
• Open savings accounts for its members, in the name of each member, into which that member may deposit or withdraw money and from which that member may instruct the co-operative bank to transfer or pay money
• Borrow money from the CBDA and members, other than deposits referred to in paragraph (a), up to a percentage of the assets held by it as prescribed by the Minister
• Open a savings account or cheque account in the name of that co-operative bank with any banking institution
• Make, draw, accept, endorse, or negotiate negotiable instruments that are paid to the order of or made out and endorsed by that co-operative bank;
• Provide trust or custody services to members
• Conduct any additional banking services as may be prescribed by the Minister
• Invest money deposited with it in investments

Secondary co-operative bank

A secondary co-operative bank may only provide the following banking services:

• Any of the banking services referred to above
• trading financial instruments on behalf of its members;
• Open an account with a bank registered under the Banks Act to facilitate foreign currency transactions;
• Conduct such additional banking services and invest money deposited with it in any investments prescribed by the Minister, in addition to those prescribed above.

Tertiary co-operative bank

A tertiary co-operative bank may provide the following banking services:

•  Any of the banking services offered by secondary and primary co-operatives
• conduct such additional banking services and invest money deposited with it in any investments prescribed by the Minister