• Five or more members can form a cooperative by registering with the company registry, with limited liability.
• A majority of members must be farmers; it runs on one-member-one-vote with limited extra votes tied to trading volume.
• Profits are distributed mainly in proportion to each member's transactions with the co-op (not just capital).
• The co-op has legal personality and benefits from agricultural support and tax reliefs.
• It keeps financial records and holds an annual general meeting to approve accounts.
• Members have rights to information and to withdraw per the bylaws.
🏢 Company setup
Farmers' Professional Cooperatives Law · Yalla China
中华人民共和国农民专业合作社法 / Farmers' Professional Cooperatives Law
Enacted: 2006-10-31 ✅ Effective: 2018-07-01
📝 Overview
Governs setting up and running farmer cooperatives for joint buying of inputs, selling produce and shared marketing, under democratic 'one member, one vote' governance.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
💬 Practical reading
💬 This is a general reading/opinion for orientation — not the official legal text nor legal advice.
For a joint farming venture, a registered cooperative gives limited liability and better tax treatment than an unregistered partnership.
📎 Official source
npc.gov.cn
🕒 Updated: 16 March 2026