Section 3: Formation of Organisation

1) Three Nepali citizens, at the minimum, may mutually form a sectoral or multipurpose cooperative organisation.

2) Notwithstanding anything contained in sub-Section (1), in the case of a Cooperative Organization carrying out business based on labour and skills involving labourers, youths and others, even 15 Nepali citizens may form such an organisation.

3) Notwithstanding anything contained in sub-Section (1), participation of at least one hundred Nepali citizens shall be required while forming an Organization carrying out transactions of savings and credits in a Metropolitan City or Sub[1]Metropolitan City.

4) While forming an Organization under this Section, the number referred to in sub-Section (1), (2) and (3) shall be met at the rate of one member per family.

Provided that there shall be no hindrance to acquiring membership by more than one person of a family once an Organization is registered pursuant to Section 15.

5) Notwithstanding anything contained in sub-Section (1), at least one hundred employees, teachers or professors who are incumbent in an office getting remuneration from the Government of Nepal, Provincial Government, Local Level or from a school, University or corporate entity getting a grant from, or under the ownership of, such government or level may, based on the professional organisation formed according to the prevailing law, form together an organisation with a condition to abide by the terms and conditions as prescribed.

Provided that in an office with less than one hundred employees, at least thirty employees, teachers or professors may form together an organisation with a condition to abide by the terms and conditions as prescribed.