How do I set up a cooperative start-up in India?

The cooperative start-up structure is still a nascent idea in India. Every morning, Nirbheek Chauhan, 30, gets ready and heads to his office—another room in his apartment in Bengaluru. There, he connects with the other six members of his team, based out of UK, Greece, France and Australia, and starts work on his current project.

Chauhan works at the software consultancy Centricular, a flat-hierarchy, co-owned start-up, which is collectively managed by all its partners—who are employees as well. For clients, Centricular is a company like any other. It’s the internal set-up that sets it apart from the regular corporate model.

In cooperatives, all employees have a say

“In a cooperative, every member has a single vote, irrespective of how many shares they own in the company,” explains Chris Chroome, administrator for CoTech, the largest online forum for cooperative technologists in the UK, and a member of a software cooperative, WebArchitects.

In other words, it’s a democracy and all employees have an equal say. “Decisions are taken collectively, which means we are both the board of directors and employees of our company,” says Deepa Venkatraman, one of the founding members of Nilenso, a Bengaluru-based software consultancy founded in 2013. Venkatraman’s day-to-day routine is like anyone else’s: You work on a project, together or individually, and then shut down your laptop to spend time with friends and family.

What is a corporate cooperative?

But, rather than founders owning and operating the business, Nilenso, a “corporate cooperative”, as Venkatraman calls it, is owned by everyone. All 16 Nilenso members annually elect two executives who are responsible for making operational decisions, like staffing, facilitating meetings and interacting with external stakeholders.

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