Implementation Date for Producer Company Provisions Notified by MCA
The Ministry of Corporate Affairs or MCA by way of a Notification has declared that the implementation of producer company provisions, mentioned under Chapter XXIA. The same was inserted by way of the Companies (Amendment) Act 2020, and came into effect from 11.02.2021.
In this blog, we will discuss about the implementation of Producer Company provisions by the Ministry of Corporate Affairs.
Concept of Producer Company
The term “Producer Company” signifies a body corporate which deals with the activities and objectives as specified under section 581B and has obtained Producer Company Registration under the provisions of the Companies Act 1956.
Further, it shall be considerate to take into consideration that only a primary producer is allowed to start a Producer Company in India. Also, the company must use “Producer Company Limited” at the end of its name as suffix.
Only a Private Limited Company can be incorporated as a Producer Company in India. Further, a minimum of 10 individuals or 2 organisations or a combination of both are eligible to start a Producer Company in India. Lastly, the provisions concerning Producer Companies are specified under part IXA.
Also, Read: Benefits of Farmer Producer Company in India
What is the Implementation Date for Producer Company Provisions?
MCA had notified 11.02.2021 as the Implementation Date for Producer Company Provisions as follows:
Section 66 of the Companies Act 2020 deals with the amendments made in section 465 of the Companies Act and in concerned with the Repeal of Certain Enactments and Savings.
Section 52 of the Companies (Amendment) Act 2020 inserts chapter XXIA in the Companies Act 2013 and relates to Producer Companies.
In a nutshell, we have discussed about the concept and the implementation date for producer company provisions. Further, the same has been notified by MCA through a Notification.
Official MCA Notification on Implementation Date for Producer CompanyMCA-Notification-on-Implementation-Date-for-Producer-Company
Also, Read: Producer Companies Rules 2021