Alternative legal forms
As well as a single registered cooperative society, the following alternatives have been considered.
Market Community as a separate legal body
Market Community and CPO can also be founded as separate legal entities.
In this case, the foundation of the market community as a further Cooperative suggests itself. Since the market community clearly also pursues economic goals, in particular by soliciting providers of professional taxable services, a club or foundation would not be applicable.
But since the two communities are closely linked economically, combining them in a single legal form should be much easier (and cheaper).
Transfer of the assets to a security pool
The assets of the Regional Economic Community (shares in companies, real estate, joint-ownership certificates) could be stored in a security pool, which could (in Germany) have its own legal form as a partnership under the German Civil Code (BGB). The intent behind this idea was to reduce the local business tax.
This idea was rejected for the following reasons:
The Regional Economic Community aims to include the local authority – therefore it cannot at the same time use a tax loophole in order to avoid as much business tax from the German local authorities as possible (unlike in other countries, the German local authorities finance themselves mainly through the business tax from local companies).
If the CPO as a Cooperative were to give out joint-ownership certificates for assets which are owned by a security pool, not itself, then this would contradict the idea of transparency and simplicity – but these are essential criteria for long-term viability.
The burden of business taxes will minimise itself anyway. It has to be paid on interest from loans, leasing rates, rent payments, pension payments and other regular bills, payments for concessions and licenses. All these costs arise if the community doesn't own what it uses. The intention of the Regional Economic Community is exactly contrary to that. Its declared goal is to work with its own production means.