Section 5: Formation of District Cooperative Association

At least eleven Organizations Registered pursuant to Section 15 and engaged in activities including the development, promotion, and marketing of cooperative enterprises may together form a Sectoral District Cooperative Association.

Provided that:-

1) At least seven Organizations may form a district Sectoral Cooperative Association in their specific sector in the remote districts that the Government of Nepal has specified as belonging to Class “A.”

2) While forming an Association in such a manner, it shall include in the Association more than fifty percent of the Sectoral Associations Registered in the district.