BASIC GUIDELINES FOR THE FORMATION OF CO-OPERATIVES UNDER KARNATAKA SOUHARDA SAHAKRI ACT, 1997 · There should be at least ten persons. · These persons should be from different families. · These persons should be competent to enter into a contract under the Indian contracts Act 1872. · He should reside in the area of operation of the Cooperative. · He should be eligible as per the bye-laws of the proposed Cooperative. · Any individual, firm, company or any other body corporate can become member of the Cooperative. · Any Cooperative registered under this Act (For Union cooperative) or Societies registration Act 1860. · The object of the Cooperative should be promotion of economic interests or general welfare of the members or the public, in accordance with the co-operative principles. · It should be economically sound, its registration should not affect adversely on the development of the co-operative movement.