What is a Producer Company?
A producer company can be defined as a legally recognized body of farmers/ agriculturists with the aim to improve the standard of their living and ensure a good status of their available support, incomes and profitability. Under Companies Act 1956, a Producer Company can be formed by 10 individuals (or more) or 2 institutions (or more) or by a combination of both (10 individuals and 2 institutions) having their business objective as one of the following:
production, harvesting, procurement, grading, pooling, handling, marketing, selling, the export of primary produce of the Members or import of goods or services for their benefit.
Why is it important to register a producer company?
A registered producer company can easily aquire and sell property in its own name. Further is it qualified to accept deposits or give loans to the farmers at a reasonable rate of interest. Also, it is eligible to accept deposits in the form of FD (Fixed Deposits) or RD (Recurring Deposits).
Procedure for Producer Company Registration
1. Application for the approval of Name by filing RUN (Reserve Unique Name) form with the ROC.
2. Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN) by filing the SPICE form.
3. Drafting MOA and AOA.
4. After verifying of the documents, a certificate of Incorporation is issued by the ROC .
What are the types of Producer Company?
Production Businesses, Marketing Businesses, Technical Service Businesses, Financing Businesses, and Infrastructure Businesses relatable to Primary produce are the five types of Producer Companies found in India.
