Producer Company Registration
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Get your Producer Company Registration
The Government of India introduced the Producer companies concept to Indian economy in 2002. They have been able to help primary producers get credit, input, and market access since then.
FREQUENTLY ASKED QUESTIONS
What is Producer Company?
A producer company is a legal entity that is recognized by farmers/agriculturists. Its purpose is to improve their standard of living and ensure they have the support, income and profitability they need. The Companies Act, 2013, Section 465(1) (the “Act”) provides that the provisions regarding a Producer Company in Part IXA, the Companies Act, 1956, shall continue to apply. A Producer Company may be formed by either 10 or more individuals, or two institutions, or a combination of both (10 people and 2 institutions), if they have the same business objective.A farmer producer company is a combination of private limited companies and cooperative society, which are registered under the Act. They are democratically managed and all members or producers have equal voting rights, regardless of how many shares they own.
What are the objectives of the Producer Company?
The Act states that the producer company’s objectives should be related to any or all of the following: (as provided in the law).
- Producing, harvesting and procurement. Grading, grading, pooling. Handling, marketing, selling, exporting primary production to the Members. Import of goods or services for the benefit of the Members. Provided that the Producer Company can carry out any of these activities either directly or through another institution.
- Processing, including preservation, drying, distilling and brewing, vinting, canning and packaging the produce of its members.
- Supply, manufacture, or sale of machinery, equipment, or consumables, primarily to its members.
- Providing education about the principles of mutual assistance to its members and other interested parties.
- Providing technical services, consulting services, training and research and any other activities to promote the Members’ interests.
- Generation and transmission of power, distribution and revitalization of water and land resources, their conservation and communication relevant to primary produce.
- Insurance for producers or primary produce.
- Promoting mutual assistance and mutual understanding.
- Any welfare measures or facilities that are available to Members, as determined by the Board.
- Any activity that is ancillary to or incidental to the activities mentioned in clauses (a), (i) and other activities that may promote mutuality and mutual aid among the Members in any other way.
- Financing procurement, processing, marketing, or other activities as specified in clauses (a-j), which includes extending credit facilities or any other financial service to its Members.
What are the registration process of Producer Company?
A Producer Company registration is the same as a Private Limited Company. For the first directors of the company, a digital signature (DSC), and a Director Identification Number (DIN), must be obtained. Once the Digital Signature (DSC), and Director Identification Numbers (DIN) have been obtained, a request for name reservation must be made to the appropriate Registrar of Companies.The Act requires that the name and address of producer companies must include the words “Producer Limited Company”. Once the suggested name has been approved by the Registrar of Companies, a Producer Limited Company application must be filed. After approving the Producer Company’s application and all required documents, the Registrar will issue a Certificate of Incorporation.
What are the benefits of producer company?
These are some of the many benefits that a Farmer Producer Company enjoys:
- Initially, the producers company members will be paid the value of the produce that was pooled and then supplied by the directors. This amount will be paid out in cash, kind or equity shares later.
- Producer company members will have the right to receive bonus shares in the same amount as their shares.
- After ensuring that the surplus is paid in a limited return and reserve, the excess may be used to pay patronage bonuses* to producers.
Process to Register for Producer Company
- Fill up our online application form
- Mail documents at info@indiataxhub.in
- Choose payment option from list
- Congratulations your registration process is completed, we will send your registration certificates on mail.