Are you an entrepreneur looking to establish a producer company and unlock success in the agricultural sector?
Look no further!
The producer company is formed by producers or farmers who cooperate to produce agricultural products, such as harvesting, processing, packaging, and marketing. Providing better access to technology, markets, and finance is the primary objective of a producer company.
Nonetheless, we have got you covered, from understanding the legal requirements to choosing the proper structure, drafting the necessary documents, and fulfilling the procedural formalities.
What is meant by Producer Company Registration?
A producer company is defined under the Companies Act of 2013 as a form of Company that is launched by a group of individuals primarily engaged in production, procurement, handling, pooling and marketing agricultural products. Here, the primary produce includes farmers' products, ranging from horticulture to animal husbandry, along with any other produce defined under the Central government.
The producer company is formed by ten individuals and two institutions with five directors, constituting a legal entity. For instance, the members of the producer company seem to have limited liability and control over the assets.
Besides, the company act of 2013 brings forth the registration, management & incorporation, which completes the process of Company registration.
Under Company Law 1956 Objects of the Producer Company
The objects of the Producer Company shall relate to all or any of the following matters, namely:
- Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit: Provided that the Producer Company may carry on any of the activities specified in this clause either by itself or through other institution.
- Processing includes preserving, drying, distilling, brewing, vinting, canning and packaging of the produce of its Members.
- Manufacture, sale or supply of machinery, equipment or consumables mainly to its Members.
- Providing education on the mutual assistance principles to its Members and others.
- Rendering technical services, consultancy services, training, research and development, and all other activities for the promotion of the interests of its Members.
- Generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce.
- Insurance of producers or their primary produce.
- Promoting techniques of mutuality and mutual assistance.
- Welfare measures or facilities for the benefit of Members may be decided by the Board.
- Any other activity, ancillary or incidental to any of the activities referred to in clauses (a) to (i) or other activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner
- Financing of procurement, processing, marketing or other activities specified in clauses (a) to (j) which include extending credit facilities or any other financial services to its Members.
- Every Producer Company shall deal primarily with the produce of its active Members for carrying out any of its objects specified in this section.