Art. (2) of the SCE Regulation deals exhaustively with the ways in which the SCE can be established. The so-called transnational element is needed. An SCE can be established:
- Mergers of national cooperatives under the law of a state whose registered office and principal administration are located in the EC territory, if at least 2 of them are governed by the law of different member states.
- Transformation of a cooperative having its registered office in the EC if such a cooperative has at least two years a subsidiary which is governed by the law of another Member State. It may arise even if the national cooperative has at least two years at least the organizational unit of an enterprise in another Member State (difference from SE)
The SCE Regulation also permits the SCE to be set up as a new entity:
- By at least 5 natural persons in the territory of at least 2 different member states
- By at least 5 natural persons and companies within the meaning of Article 48 of the SES and other legal entities established under the law of a Member State which are resident in the territory or governed by the law of at least two Member States
- By at least two companies within the meaning of Article 48 of the SES and other legal entities established under the law of a State which is governed by the law of at least two different Member States.