Producer Company Registration

Q. What is a Producer company?

Ans- A Producer company is a company, formed with the objective of production, procurement, harvesting, grading, marketing, and trading of the primary produce with the help of its members and financing them for these activities which includes extending credit facilities also. It cannot deal with the public directly and can only work with its members.

Q. What are eligibility for Producer company Registration in India?

Ans- The following are the eligibility for Producer company Registration in India-

• Minimum Person Requirement- A Producer company can be set up by any 10 or more individuals, each of them being a producer or any 2 or more Producer institutions, or a combination of 10 or more individuals and Producer institutions. Every Producer company shall have at least five and not more than fifteen directors. In the case of an inter-state co-operative society incorporated as a Producer company, such a company may have more than fifteen directors for one year from the date of its incorporation as a Producer company.
• Minimum Capital Requirement– The minimum capital requirement for Producer company registration is Rs. 5 lakh.
• Unique Name-The name of the company should be unique and should not be similar to any existing company name or trademark.

Q. What are the documents required for Producer company registration in India?

Ans:- The following are the documents required for Producer company registration in India-

Q. What are the procedures for Producer company registration in India?

Ans- The following are the procedures for Producer company registration in India-

• Step 1: Reservation of name of company
• Step 2: Take the DSC of directors and shareholders
• Step 3: Approval of other regulators (if required)
• Step 5: Get a certificate of registration, PAN and TAN
• Step 5: Open the Bank Account of the company

Q. What are the benefits of Producer company registration in India?

Ans- The following are the benefits of Producer company registration in India-

• Limited Liability: If the company goes through some financial distress, the personal assets of members of the Producer company will not be used to pay the debts of the Producer company.
• Separate Legal Identity: A Producer company is a legal entity and a juristic person established under the Act separate from their members. 
• Transferability: Interest in the Producer company can easily be transferred by transferring its shares. 
• Tax Benefits: If the companies are registered as farmer-producer Companies with an annual turnover of Rs. 100 Crores, then such companies will have a 100% tax deduction and earning profit out of the same will not bother to pay any tax. 
• Perpetual Succession:  A Producer company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.
• Loans & Investment: NABARD bank offers loans to the farmers for a period not extending six months to meet their needs. In the event, that the members need finance for farming they can effortlessly take from the NABARD bank for a specific time.

Q. Which law governs Producer company in India?

Ans- The formation and regulation of the Producer company are governed under the provisions of Sections 581A to 581ZL of the Companies Act, 1956, read with the Companies Act, 2013, and the rules made thereunder.

Q. What is the limit on the maximum number of members in the Producer company in India?

Ans- As per clause (5) of section 581C of the Companies Act, 1956, the Producer Company shall become a body corporate as if it is a Private company without however any limit to the number of members.

Q. Who can be a member of a Producer company in India?

Ans- A person being a “producer” or a “producer institution” (whether incorporated or not) can be admitted as a member of the Producer company.

Here “Producer” means any person engaged in any activity or connected with or relatable to any primary produce and primary produce of a farmer is defined as the produce of a farmer arising from agriculture including animal husbandry, horticulture, floriculture, pisciculture, viticulture, forestry, forest products, revegetation, bee raising, and farming plantation products), or from any other primary activity or service which promotes the interest of the farmers or consumers or produce of persons engaged in handloom, handicraft and other cottage industries or any product resulting from any of the above activities, including by-products of such products.

“Producer Institution” means a producer company or any other institution having only producer or producers or Producer company or Producer Companies as its member whether incorporated or not having any of the objects referred to in section 581B and which agrees to make use of the services of the Producer Company or Producer Companies as provided in its articles

Yes, you can get a discount on the product/service as per the company policy.

Max up to 20%, as allowed from time to time on this product/service.