A producer Company is a company incorporated for 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. Hence, a producer company primarily
deals with agriculture & post harvesting activities. The concept of producer companies was introduced to
empower farmers.
It can be formed by 10 or more producers or two or more producer institutions or a combination of 10 or
more producers and producer institutions. It can only have equity capital, require a minimum of five
directors and authorized capital of Rs. 5 lakh. The important point is to note that it cannot be
converted into a public company but can be converted into a multistate co-operative society. Production
businesses, marketing businesses, technical service businesses, financing businesses & infrastructure
businesses providing services to producers can be registered as a producer company. The process of
registering a producer company is similar to a private limited company.
SEPARATE LEGAL ENTITY | A Producer company is considered as a separate legal entity for the law. Accordingly, it can hold property in its name, sue & be sued, borrow in its name, etc. |
LIMITED LIABILITY | The members are considered separate from the company. So, they are not liable for the creditors of the company. |
NO CLAIM ON PROPERTY OF COMPANY | Since, it is considered as a juristic person, no member can claim any rights over the property of a Producer Company as long as it is going concern. |
PERPETUAL SUCCESSION | The existence of a producer Company does get affected due to the departure or death of any member. |
CREDIBILITY | A Producer Company enjoys better credibility as it is registered and managed by the central government in contrary to mutual benefit organizations that are registered & monitored by state governments. |
1. Self Attested PAN Card copy
2. Self Attested copy of any one of the Identity Proof(Voter's ID/Passport/Driver's License)
3. Self Attested copy of Address Proof in the name of the director (Any utility bill i.e., mobile bill/water bill/ electricity bill, or bank statement which should not be older than two months)
4. Passport-sized photograph
1. Rent Agreement (Notarised: For rented property)
2. Sale Deed/Property Deed in English (in case of owned property)
3. No-objection Certificate from the property owner
4. Latest Electricity Bill / Mobile or Telephone Bill / Latest Bank Statement/Gas Bill
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