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Producer Company

OVERVIEW

A producer company can be described as a legally recognized body of farmers/ agriculturists with the aim to improve the standard of their living and certify a bright status of their available support, incomes, and profitability. Under Companies Act 1956, a Producer Company can be formed by 10{or more} individuals or 2{or more} institutions or by a combination of both (10 individuals and 2 institutions) own their business objective as one of the following:

  • Procurement
  • Production
  • Harvesting
  • Grading
  • Pooling
  • Handling
  • Marketing
  • Selling, or
  • Export

For their benefit of the primary producers of the Members or import of goods or services.

Following are the benefit of the producer Company.

  1. The members of the producer company at first will collect the value for the produce pooled and supplied as determined by the directors. This amount will be given out behind time in the form of cash/ kind/ equity shares.
  2. The members of the producer company will be sanction to receive bonus shares in the same proportion to the shares held by them.
  3. The surplus may be given as a promotion bonus* to the members of the producer company.

Following are the disadvantages of the producer company.

 

  1. The difficulty of Formation: The promotion of a company is not an uncomplicated task. A number of stages are entailed in company promotion.
  2. Separation of Ownership and Management: The ownership and management of the public company is dissimilar
  3. Factory System: The company form of entity leads to big-scale production.
  4. Speculation in Shares: The joint-stock companies facilitate supposition in the shares at stock exchanges.

Any of the following combinations of producers can incorporate a producer company:

• 10 or more producers (individuals); or
• 2 or more producer institutions; or
• Combination of the above two (10+2).

After registration as producer company the provision of companies act U/s 581 C (1), the Producer Company shall become a body corporate as if it is a private limited company then provisions of a private limited company will apply.

Producer Company
Producer Company Registration

All about Producer Companies

OVERVIEW

A producer company can be described as a legally recognized body of farmers/ agriculturists with the aim to improve the standard of their living and certify a bright status of their available support, incomes, and profitability. Under Companies Act 1956, a Producer Company can be formed by 10{or more} individuals or 2{or more} institutions or by a combination of both (10 individuals and 2 institutions) own their business objective as one of the following:

  • Procurement
  • Production
  • Harvesting
  • Grading
  • Pooling
  • Handling
  • Marketing
  • Selling, or
  • Export

For their benefit of the primary producers of the Members or import of goods or services.

 

Following are the benefit of the producer Company.

  1. The members of the producer company at first will collect the value for the produce pooled and supplied as determined by the directors. This amount will be given out behind time in the form of cash/ kind/ equity shares.
  2. The members of the producer company will be sanction to receive bonus shares in the same proportion to the shares held by them.
  3. The surplus may be given as a promotion bonus* to the members of the producer company.

Following are the disadvantages of the producer company.

 

  1. The difficulty of Formation: The promotion of a company is not an uncomplicated task. A number of stages are entailed in company promotion.
  2. Separation of Ownership and Management: The ownership and management of the public company is dissimilar
  3. Factory System: The company form of entity leads to big-scale production.
  4. Speculation in Shares: The joint-stock companies facilitate supposition in the shares at stock exchanges.

 

Legal Requirements 

Any of the following combinations of producers can incorporate a producer company:

  • 10 or more producers (individuals); or
    • 2 or more producer institutions; or
    • Combination of the above two (10+2).

 

After registration as Producer Company the provision of companies act U/s 581 C (1), the Producer Company shall become a body corporate as if it is a private limited company then provisions of a private limited company will apply.

Producer Company Information

Basic

INR 39,999/-

One Time Fee

  • Producer company Incorporation
  • PAN & TAN
  • ESI & PF
  • GST Registration
  • MSME Registration
  • Bank A/c.

Service Provide Within 7 Days

Standard

INR 49,999/-

One Time Fee

  • Producer Company Incroporation
  • PAN& TAN
  • ESI & PF
  • GST Registration
  • Shop & Establishment Registration
  • MSME Registration
  • Trade Mark Registration
  • Logo Design
  • Opening Bank A/c.

Service Provide Within 15 Days

Premium

INR 29,999/-

Yearly Fee

  • Annual Compliances
  • Yearly GST Compliances
  • Income Tax Return

Services Provided Before the Due Date

Frequently Asked Questions

producer company started with the objective of harvesting ,procurement ,grading ,pooling ,handling ,marketing, selling and export of primary things and import important things for its members

minimum 5 directors are required to start a producer company.

To start a producer company minimum of 5 lakh capital must be required.

There is a limited liability in producer company, Producer company having a better Management.

A producer company can be formed with 10 or more individuals as a producer or with two or more producer institutions or with the combination of both conditions.

4 board meetings are mandatory to be conducted in a year and a maximum gap between a meeting is 3 months.