{"id":2331,"date":"2021-02-16T05:24:47","date_gmt":"2021-02-16T05:24:47","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=2331"},"modified":"2021-02-16T05:24:49","modified_gmt":"2021-02-16T05:24:49","slug":"producer-companies-rules-2021-notified-by-mca","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/producer-companies-rules-2021-notified-by-mca\/","title":{"rendered":"Producer Companies Rules 2021: New Rules Notified by MCA"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Recently, the Ministry of\nCorporate Affairs, by way of a Notification, issued on 11.02.2021, has notified\nthe Producer Companies Rules 2021. The said rules will supersede the previous\nProducer Companies (General Reserve) Rules 2003. Further, the said rules will\ncome into force from the date of publication in the Official Gazette.<\/p>\n\n\n\n<p>Also, it shall be\nrelevant to state that the same has been done by the Central Government in view\nof the powers bestowed by section 378H (4), 378ZL (1), and subsection (1) and\n(2) of section 469 of the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Companies_Act_2013\">Companies Act 2013<\/a>.<\/p>\n\n\n\n<p>In this blog, we will\ndiscuss about the concept of <strong><a href=\"https:\/\/swaritadvisors.com\/producer-company-registration\" class=\"text-primary\">Producer\nCompanies<\/a><\/strong>, together with the provisions of the Producer Companies Rules\n2021, passed by MCA.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a7b4cbef87\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a7b4cbef87\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/producer-companies-rules-2021-notified-by-mca\/#Concept_of_Producer_Company\" title=\"Concept of Producer Company\">Concept of Producer Company<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/producer-companies-rules-2021-notified-by-mca\/#Key_Provisions_of_the_Producer_Companies_Rules_2021\" title=\"Key Provisions of the Producer Companies Rules 2021\">Key Provisions of the Producer Companies Rules 2021<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/producer-companies-rules-2021-notified-by-mca\/#Applicability\" title=\"Applicability\">Applicability<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/producer-companies-rules-2021-notified-by-mca\/#Definition\" title=\"Definition\">Definition<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/producer-companies-rules-2021-notified-by-mca\/#Act\" title=\"Act\">Act<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/producer-companies-rules-2021-notified-by-mca\/#Section\" title=\"Section\">Section<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/producer-companies-rules-2021-notified-by-mca\/#Cooperative_Society\" title=\"Cooperative Society\">Cooperative Society<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/swaritadvisors.com\/blog\/producer-companies-rules-2021-notified-by-mca\/#Change_of_the_Place_of_Registered_Office\" title=\"Change of the Place of Registered Office\">Change of the Place of Registered Office<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/swaritadvisors.com\/blog\/producer-companies-rules-2021-notified-by-mca\/#Investment_of_General_Reserves\" title=\"Investment of General Reserves\">Investment of General Reserves<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/swaritadvisors.com\/blog\/producer-companies-rules-2021-notified-by-mca\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/swaritadvisors.com\/blog\/producer-companies-rules-2021-notified-by-mca\/#Official_Copy_of_Producer_Companies_Rules_2021\" title=\"Official Copy of Producer Companies Rules 2021\">Official Copy of Producer Companies Rules 2021<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concept_of_Producer_Company\"><\/span>Concept of Producer Company<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The term Producer Company means a legally\nrecognised business structure, which is formed by the Body of Farmers or\nAgriculturists. The main aim of this business format is to improve the living\nstandard of farmers and to ensure support, income, and profitability to them.<\/p>\n\n\n\n<p>Further, based on the provisions of the Companies\nAct 1956, a Producer Company needs a minimum of 10 individuals or 2\ninstitutions, or a combination of the both, i.e., 10 Individuals and 2\nInstitutions, who are having their business objectives from either of the\nfollowing listed:<\/p>\n\n\n\n<ul><li>Procurement;<\/li><li>Production;<\/li><li>Harvesting;<\/li><li>Grading;<\/li><li>Pooling;<\/li><li>Handling;<\/li><li>Marketing;<\/li><li>Selling, or;<\/li><li>Export;<\/li><\/ul>\n\n\n\n<p>Also, the said business objectives deal with the\nprimary produce or harvest of the Members or the import of goods or services\nfor their personal benefit.<\/p>\n\n\n\n<p>Also, another one of the main purposes of a\u00a0producer\u00a0company is to simplify the incorporation of co-operative business as companies and to allow the conversion of existing co-operative business into business entities or companies.<\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/benefits-of-farmer-producer-company-in-india\/\">Benefits of Farmer Producer Company in India<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Provisions_of_the_Producer_Companies_Rules_2021\"><\/span>Key Provisions of the Producer Companies Rules 2021<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The key provisions of the Producer Companies Rules\n2021 are as follows:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Applicability\"><\/span>Applicability<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The Producer Companies Rules 2021 will be applicable\nto Producer Companies as specified under the provisions of the clause (I) of\nsection 378 A.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition\"><\/span>Definition<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The definition clause of these rules includes the\ndefinition of the terms listed below:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Act\"><\/span>Act<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>It means the companies incorporated under the\nCompanies Act 2013.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Section\"><\/span>Section<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The term Section means the sections of the Act.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Cooperative_Society\"><\/span>Cooperative Society<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The term <strong><a href=\"https:\/\/swaritadvisors.com\/multi-state-co-operative-society-registration\" class=\"text-primary\">Cooperative\nSociety<\/a><\/strong> denotes a society registered or deemed to be registered under\nthe provisions of any law pertaining to co-operative societies for the time\nbeing in force in any State.<\/p>\n\n\n\n<p>Also, it shall be considerate to\ntake into the note that, if in case the words and expressions used in these\nregulations are not defined in the Act or in the provisions of the Companies\n(Specifications of Definitions Details) Rules 2014, then, in that case, they\nwill have the same meaning as assigned to them in the Act or in the said\nregulations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Change_of_the_Place_of_Registered_Office\"><\/span>Change of the Place of Registered Office<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If in case a producer company wants to change the\nplace of its registered office from one state to another, then, in that case,\nprovisions of Rules 27, 30, and 31 of the Companies (Incorporation) Rules 2014,\ntogether with the specified forms will become applicable for the purposed of\nchange of office space.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Investment_of_General_Reserves\"><\/span>Investment of General Reserves<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Based on the provision of Rule 5 of the Producer\nCompanies Rules 2021, a producer company will make the investment from and out\nof its GR (General Reserve) in any one of the combination as follows:<\/p>\n\n\n\n<ul><li>In approved\nsecurities, units, bonds, fixed deposits as issued by the Central Government or\nState Government or Scheduled Bank or Cooperative Societies;<\/li><li>In a Cooperative\nBank, or Cooperative Land Development Bank, or State Cooperative Bank, or\nCentral Cooperative Bank;<\/li><li>With any other\nScheduled Bank, or;<\/li><li>In any of the\nSecurities prescribed under the provisions of section 20 of the Indian Trusts\nAct 1882;<\/li><li>In the\nsecurities or shares of any other interstate cooperative society or any\ncooperative society, or;<\/li><li>In the\nsecurities, shares, or assets of PFIs (Public Financial Institutions)\nprescribed under clause (72) of section 2 of the Act; <\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, the provisions of the Producer\nCompanies Rules 2021 will supersede the provisions of the Producer Companies\n(General Reserve) Rules 2003. Also, these amended regulations prescribe the\ndefinition of the term Cooperative Society and specify the rules concerning the\nchange in registered office and Investment of General Reserves of Producer\nCompanies. <\/p>\n\n\n\n<p>Further, in case of any other doubt or issue, reach\nout to <strong><a href=\"https:\/\/swaritadvisors.com\/\" class=\"text-primary\">Swarit Advisors<\/a><\/strong>, our proficient and\nexperienced Chartered Accountants, Company Secretaries, and Lawyers are ever\nready to solve out your doubts and queries.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Official_Copy_of_Producer_Companies_Rules_2021\"><\/span>Official Copy of Producer Companies Rules 2021<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<a href=\"https:\/\/swaritadvisors.com\/blog\/wp-content\/uploads\/2021\/02\/Producer-Companies-Rules-2021.pdf\" class=\"pdfemb-viewer\" style=\"\" data-width=\"max\" data-height=\"max\"  data-toolbar=\"bottom\" data-toolbar-fixed=\"off\">Producer-Companies-Rules-2021<br\/><\/a>\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"><\/p>\n\n\n\n<p><strong>Also, Read:<\/strong> <mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/producer-company-compliance\/\">Producer Company Compliance<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Recently, the Ministry of Corporate Affairs, by way of a Notification, issued on 11.02.2021, has notified the Producer Companies Rules 2021. The said rules will supersede the previous Producer Companies (General Reserve) Rules 2003. Further, the said rules will come into force from the date of publication in the Official Gazette. Also, it shall be [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":2332,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[6,11],"tags":[388],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2331"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=2331"}],"version-history":[{"count":3,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2331\/revisions"}],"predecessor-version":[{"id":2336,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/2331\/revisions\/2336"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/2332"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=2331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=2331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=2331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}