The three merits of cooperative society are
(i) Ease of Formation: It is quite easy to form a cooperative society. Any ten adults can join together and form themselves into a cooperative. Very little time and money is required to get a cooperative society registered. The legal formalities are very few and simple.
(ii) Open Membership :Any person having a common interest can become a member of a cooperative society and can leave the society at anytime.
(iii) Limited Liability: The liability of every member is limited to the extent of his share in the society’s capital. Therefore, the risk faced by every member is limited.