We Build Everything
The agricultural industry is the backbone of Indian economy. 60% of India’s population relies on agricultural activities for their livelihood, but these primary producers and farmers struggle a lot to get their share of profit. Most of the farmers in India are small or marginal scale farmers, Producer Company aims at empowering all the small and marginal scale farmers so that their economies can be unlocked and they could also opt the latest and new technologies to lead better and improved lives.
Producer company can only have equity capital, require a minimum of five directors and an authorised capital of Rs. 5 lakh.
As per Companies Act, Producer means any person engaged in any activity connected with or relatable to any primary produce and Producer Company means a body corporate having an object that is one or all of the following:
- Export of primary produce of the Members or import of goods or services for their benefit.
Producer Company incorporate in India under Section 581 of the Companies Act, 1956 which refer is formed under the Companies Act 1956, and as per the act it can be formed by 10 individuals (or more) or 2 institutions or more or by a combination of both (10 individuals and 2 institutions)
Further, the Producer Company must deal primarily with the produce of its active Members and is allowed to carry on any of the following activities by itself or through other entities – on behalf of the members.
1. Processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its Members;
2. Manufacture, sale or supply of machinery, equipment or consumables mainly to its Members;
3. Providing education on the mutual assistance principles to its Members and others;
4. Rendering technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its Members;
5. Generation, transmission and distribution of power, revitalisation of land and water resources, their use, conservation and communication relatable to primary produce;
6. Insurance of producers or their primary produce;
7. Promoting techniques of mutuality and mutual assistance;
8. Welfare measures or facilities for the benefit of Members as may be decided by the Board;
9. Any other activity, ancillary or incidental to any of the activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner;
10. Financing of procurement, processing, marketing or other activities which include extending of credit facilities or any other financial services to its Members.
(Produce: “things that have been produced or grown, especially by farming”.
CS Club India helps you to register your Company across India at a very reasonable price. You can register your Producer Company with us in few easy steps. We will provide you facilities at the time of Incorporation. Such as:
- Name Reservation (RUN Application)
- PAN & TAN
- ESI, PF Registration
- Draft of your Company’s constitution (MOA & AOA)
- Bank Account
- Certificate of Incorporation
- Share Certificates
- GST Registration Certificate
The benefits or advantages of registering a Producer company are enlisted as:
- Company as a Separate Legal Entity
- Easy to get investment/ funding.
- Higher Certainty and fewer Complications
- Limited Liability
- Legal Security
- Capacity to Sue and Be Sued
- Better Compliance and management
- NABARD Loan facilities for Producer Companies
Formation and Producer Company Registration
A producer company must be formed by:
- Ten or more individuals, each of them being producers; or by
- Two or more producer institutions; or by
- A combination of 10 or more individuals and producer institutions
- Minimum of 5 Directors
- Minimum Capital Should be 5L