Cooperatives
Collaborative business structures for shared ownership and democratic governance.
What is a Cooperative?
A cooperative (co-op) is a member-owned business organization where profits and decision-making are shared among members based on democratic principles. Unlike traditional corporations, cooperatives prioritize member benefit over investor returns.
In the Zanzibar Digital Free Zone, cooperatives provide a unique legal structure for digital-first organizations including DAOs, worker collectives, and community-owned platforms.
Key Features
Democratic Governance
One member, one vote - regardless of capital contribution.
Shared Ownership
Members collectively own and control the cooperative.
Profit Distribution
Surplus is distributed to members based on participation.
Global Membership
Members can join from anywhere with digital residency.
Why Choose a Cooperative?
Cooperatives are ideal for:
DAOs & Web3 Projects
Legal wrapper for decentralized autonomous organizations.
Worker Collectives
Employee-owned businesses with shared profits.
Platform Cooperatives
User-owned digital platforms and marketplaces.
Freelancer Networks
Collaborative networks of independent professionals.
Cooperative vs Corporation
| Feature | Cooperative | Corporation |
|---|---|---|
| Ownership | Members | Shareholders |
| Voting Rights | One member, one vote | Based on shares |
| Profit Distribution | Based on participation | Based on shares |
| Primary Goal | Member benefit | Investor returns |
| Control | Democratic | Board/Majority |
Cooperative Principles
ZDFZ cooperatives operate under internationally recognized cooperative principles:
- 1 Voluntary & Open Membership - Open to all who accept responsibilities of membership.
- 2 Democratic Member Control - Members actively participate in decision-making.
- 3 Member Economic Participation - Members contribute equitably and share benefits.
- 4 Autonomy & Independence - Self-help organizations controlled by members.
- 5 Education & Training - Cooperatives provide education to members.
- 6 Cooperation Among Cooperatives - Working together strengthens the movement.
- 7 Concern for Community - Sustainable development of communities.