Law No. 1 “On the organization and functioning of the cooperation.”

This Law regulates the general framework for the organization and operation of cooperation. Cooperation represents a specific sector of the economy that operates through cooperative societies and other forms of their association at the territorial and national levels. Credit cooperatives and central houses of credit cooperatives, which are regulated by a special law, are not subject to this Law. Cooperatives shall be classified as follows: (a) craft cooperative; (b) consumer cooperative; (c) cooperative capitalization companies; (d) agricultural cooperative; (e) housing cooperative; (f) fishing cooperative; (g) transport cooperative; and (h) forestry cooperative. The name "cooperative society" and the particle "coop" can only be used by cooperative societies established in accordance with the provisions of this Law. The cooperative society is an autonomous association of natural and/or legal persons, as the case may be, established on the basis of their free consent, in order to promote the economic, social and cultural interests of the cooperative members, being owned jointly and democratically controlled by its members, in accordance with cooperative principles. The cooperative society is an economic agent with private capital. Cooperatives shall be based upon the following principles: (a) voluntary and open association; (b) democratic control of cooperative members; and (c) economic participation of the cooperative members. In order to achieve the purpose for which it was established, the cooperative society can carry out any activities permitted by law.