Less Taxation. Advantages of a Cooperative. Extensive record keeping is necessary in this form of organization. 19 Top Advantages and Disadvantages of a Cooperative. Merits of Co-operative Societies. State Co-Operative Bank:-These are the main co-operative banks in an every states and provide finance to the all central co-operative … The system of owning a house through a housing cooperative society in Nigeria has its own perks and advantages on a good day, but it also has its disadvantages. Cooperatives are private organizations that are controlled and owned by the individuals who use the supplies, services, or products they produce. 4. 2. It thus helps in raising the standard of living of the members. Therefore, members of a cooperative are only taxed once on their income from the cooperative and not on both the individual and the cooperative level. Disadvantages of a Cooperative Organization: 1. Merits of Cooperative Society. Advantages and Disadvantages of Cooperative Societies. Any ten adults can join together and form a co-operative society. The cooperative society helps its members in providing employment to the people and supply of goods at a lower price than the market. Limited liability: The liability the members is mostly limited to the value of the share held by them. It has less incentive, and there’s also a possibility of development of conflict between members. 5. February 7, 2020 March 5, 2020 by Louise Gaille. Advantages of Co-operative Society 1. Ans: Given below are the types of cooperative societies: Consumer Cooperative Society: Its purpose is to purchase goods directly from the manufacturer and deliver it to the consumers at a reasonable price. Disadvantages 3. Advantages of Cooperative Society. 9. It promotes saving habit, self-help and other moral values in the society. Being a body corporate, the co-operative society gets all the advantages and benefits, which are derived by companies. Co-operative societies enjoy the benefit of certain preferences being shown towards them by tax authorities. Similar to an LLC, cooperatives that are incorporated normally are not taxed on surplus earnings (or patronage dividends) refunded to members. Disadvantages of cooperative society: Housing Cooperative Society: This committee is formed to help the members who need lands and houses. Social benefit: It helps in social welfare as it caters to the needs of the poor and middle sections of the society. … Marketing Cooperative Society: These societies are formed with the objective of providing small producers a platform to sell their products at affordable prices and also eliminate middlemen from the chain, thus ensuring adequate profits. The procedure involves in the registration of a cooperative society is very simple and easy.… Advantages And Disadvantages Of Cooperatives 702 Words 3 Pages The world has become more and more exclusive as the disparity between the haves and have-nots in our society widened. In addition, it enjoys the following advantages also. 3. 2. Right now, one of the surest routes to owning a home in Nigeria is to go the cooperative society way. It requires members to participate for success. 1. Easy to form: The formation of a cooperative society is very simple as compared to the formation of any other form of business organisations. Following are some of the advantages of cooperative societies: 1. Central Co-Operative Bank:-This banks are operate in district level and provide a financial services and control the primary co-operative societies of a district. A cooperative organization entails longer decision-making process. 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