Producer Company Registration in India
Produce are the things that have been produced by farming or you can say products grown by agriculture are produce. A Producer company registered under Companies Act, 2013. Companies who produce, harvest, procure, grade, pool, handle. sell, export agriculture products for their benefits are count under producer company. So, the producer company is a body whose objective of production, marketing, export of primary produce, processing, packaging, manufacture, sale of machinery of agriculture services and activities.
Registration of a Producer Company
10 or more peoples who are producers, two or more producer institutions or a combination of two can form a producer company. Authority has to submit the registration application along with all required documents to registrar, after that registrar examines all the documents and issues a certificate within 30 days of receipt. Liability of the members are limited in producer company, maximum liability can be equal to amount of shares purchased by member.
Advantages of a Producer Company
- Personal Legal Entity: The main advantage of a Producer Company is that it works as a separate legal entity, it can own property, can allow shares, and incur debts. Members or Directors are not liable to the creditors of a producer company.
- Better Credibility: Credibility is an another reason to register your producer company, because producer company enjoys better credibility when compared to unregistered producer organizations. Producer companies are registered and monitored by the central government, on the other hand Producer Organizations are governed and monitored by state government.
- Easy Control: Activities of a producer company controlled by Board of Management, this Board of Management can be easily changed by filing simple forms to Registrar of Companies.
- Liability Profilt: Liability of the Producer Company is limited to a limited amount, the members or directors are not responsible for liability of a producer company.
- Respective Existence: As the producer company is separate legal entity, the existence of the producer company cannot be interrupted by death or departure of any member.
Conditions to Register a Producer Company
- Producer company can only have equity share capital.
- Five Lakh rupees must be minimum paid-up capital.
- Minimum 10 individuals or 2 producer institutions or any other combination of ten individuals and producer institutions are essential to incorporate a producer company.
- There is no limit for Maximum number of members in a producer company.
- There must be minimum 5 directors and Maximum of 15 directors in a Producer Company.
- First director must be choosen within 90 days of producer company registration by the subscribers of the company.
- Other directors must be choosen or elected by members of producer company in Annual General Meeting of Producer Company.
- AOA can authorizes Producer Company that the active members can vote.
- Meeting of Board of Directors must be held atleast once in every 3 months or atleast four times in each year.
- First Annual General Meeting of Producer Company must be held within 90 days of incorporation.
- If the annual turnover exceeds by 5 Crore from last 3 financial year then Producer Company must appoint a secretary.
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