In an important sense, all FairShares Enterprises are co-operatives (co-ops) - they commit to advancing co-operative values and principles in their rules. However, a FairShares coop in the stricter sense is one registered under laws specifically designed for cooperative societies. There are three main differences to a company. Firstly, under Cooperative/Society Law, shares have a par value (a face value does not change when profitability changes). While par value shares are optional under Company Law, they are the norm under Cooperative Law. Secondly, there may be a cap on the number of shares that an individual can purchase. Thirdly, there are usually legislative requirements for democratic member control. There can be a fourth requirement - that part of the surplus is converted into 'cooperative capital' to ensure it can only be invested in the cooperative economy or other cooperatives.

A FairShares co-op, therefore, will issue all shares as par value shares. It is the number issued, rather than their face value, that determines entitlements to interest on financial capital and dividends based on participation.4 FairShares coops are based on multi-stakeholder (solidarity) principles: they enfranchise workers, consumers, entrepreneurs and (financial) supporters within a single legal structure. Some countries may not support multi-stakeholder coops because their coop laws are designed for specific industries (e.g. Agriculture, Housing, Finance). So, check if the Cooperative statutes allow more than one class of member before you attempt establish a multi-stakeholder enterprise using co-operative law. If you can, the FairShares Cooperative Rules Generator allows you to choose your own labels for founder, labour, user and investor members, so you may be able to configure a FairShares coop to meet local industry norms. However, if there is no legislative support, you will have to choose between a company, partnership or association.

Adopting a FairShares coop legal form will be important if you need the kudos of being a bone fide coop for marketing / fundraising. However, if you want to operate as a hybrid with non-coop / mutual investors, you will have to weigh up the value of choosing between a coop and company legal form.