Worker Co-ops

A workers co-operative is a business that is owned and controlled by its workers. Only employees can be members of the co-op. There are no outsiders taking decisions about the running of the organisation. There are no outside shareholders reaping the profits. If your interested in starting a workers co-op a good place to start is this guide.

There are presently estimated to be over 2000 active workers co-ops in this country, operating in almost every field of business. Practically any small business could be run as a worker co-operative.

Under UK law there is no special legal structure for a ´co-operative´. Co-ops are registered under either the Company Acts, or the Industrial & Provident Societies Acts (IPS). Catalyst Collective has various model Memorandums & Articles of Association to incorporate co-operatives under company law. If you wish to use IPS law, we suggest you contact Co-operatives UK who have models approved by the Registry.

resources for worker co-operatives

Memorandums & Articles of Association

Most co-operatives that we work with opt for the not-for-profit Company Limited by Guarantee option. These rules have consensus decision-making built into them.

catalyst´s Guarantee worker co-op rules (pdf)

Or, we also have rules for a Company Limited by Share worker co-op. apparently there are tax advantages to being able to pay yourselves dividends, rather than higher wages.
catalyst´s Share worker co-op rules (pdf)
(designed by Co-opportunity)

If you don´t want your proposed co-op to be controlled by only the employees you may find our community co-operative structure better suited to your project.
community co-operatives page

Contact Us

Email Hayley with your address, and she will post you all the necessary documents.

If you have any queries don´t hesitate to ask. If you´d like someone to come to talk to your group, this should be able to be arranged. If you´d like someone with experience to look over your plans and ideas, we are happy to do this. If you want to be pointed towards another co-op that is already doing what you intend. This is possible.

If we register you, we want to see you succeed. If we can help, we will.

And our fee includes any tinkering with the rules, to make them fit your proposed co-operative.
Email Hayley with any idea of changes you´d like made.

Of course, if you don´t have regular internet access, note down our address and/phone number and drop us a line, or give us a ring.
do it yourself

You could of course register yourselves. Company formation is a relatively easy and straightforward process.

You will need a copy of Form 10 and Form 12.

You will need to download whatever Memorandum & Articles you have decided to use, from here: