A community organisation can incorporate as a co-operative under the Co-operatives Act 1997 if the organisation is formed for the principle of co-operation. Principles of co-operation are defined in s 6 of the Act. The organisation may be a trading co-operative or a non-trading co-operative. In South Australia, the majority of co-operatives to date have been agricultural or trade organisations. An example of a non-trading co-operative would be a 'peak' body whose members are organisations with similar aims. Unlike associations, a co-operative may be a for profit body which can distribute its profits amongst its members in several ways.

A co-operative must have a board of directors. Directors and officers of a co-operative have similar duties to those of incorporated association. Normally, each member has only one vote, irrespective of the number of shares (if any) the member holds in the co-operative.

The forms for applying for registration as a co-operative are available from the Corporate Affairs Commission. The procedure for applying is explained in the form. Incorporated co-operatives must provide annual audits and periodic returns unless exemption is obtained from the Corporate Affairs Commission.

A group that intends to incorporate as a co-operative may find it necessary to obtain legal assistance as the requirements make incorporating and operating a co-operative relatively complex.