Formation of the producer company is done by 10 or more individuals. In a nutshell, Producer Company tends to deal with the matters of agricultural and post-harvest processing activities. In India, there are over 85% marginal and small farmers and they barely have land holdings of 2 hectares. It is not suitable for Indian farmers to apply the usage of advanced technologies and often the fragmentation leads to disorganization. The main reason behind the whole idea of the Producer Company is for the purpose of empowerment of the farmers. That will lead to a better economic scale and livelihood of the farmers.
Why register a Producer Company?
- Once the registration is done, the company will be a separate legal entity of its own. Under the Act, the company will have legal capacity and will also be able to incur debts and own The directors would have no liability to the creditors once the new producer company registration is done.
- The aspects of managing become smooth due to easy The Board of management has the power to control the activities of the company. However, if the need arises, the board of management can easily be changed just by filling certain forms at the Registrar of Companies.
- A producer company can enjoy the benefit of something called ‘perpetual succession’. It simply means that unless it the company is legally dissolved, it will be able to enjoy continuous
- In comparison with the unregistered producer organizations, a producer company enjoys better The Central government registers and monitors the producer company whereas the state government monitors and governs the producer organization.
The procedure for producer company registration
It is vital to have at least Ten members/shareholders and five Directors. However, there is no limit on the maximum number of members, and the numbers can keep on increasing without any concerns. In India, certain procedure/process is to be followed for the incorporation of the company.
- Necessary and mandatory documents have to be submitted.
- Reservation and Name Approval. (Form INC-1)
- Incorporation form INC-7 has to be filed along with the relevant ROC
- Certain forms like INC-22, DIR-12 and many more have to be filled.
- DSCs and DINs for the Directors.
The digital age has made completely revolutionized each and every system and process. One can easily do the online producer company registration in india. There are plenty of benefits and advantages of registering as a producer company. The registered producer company is also able to give loans to its members and that too at reasonable rates of interest. The company is also then entitled to accept deposits as well.
There are plenty of service providers who can help you to register the producer company. In some cases, a free consultation is also provided. There are also variants in packages as per the requirement of the client and is inclusive of all fees. To avail that few necessary documents have to be submitted for verification purpose. The concept of producer companies has for sure improved the economic condition of the farmers and is able to scale their business more effectively.