With 62% of people dependent upon agriculture, India is no doubt an agriculture-based country. But still, farmers in India are unorganized and deprived of the latest technologies and techniques in...
A corporate body which has its objectives and activities defined under the Act is referred to as the Producer Company. It comprises a group of individuals engaged in the creation of primary produce or having at least one objective related to primary production. In apply for producer company, you can appoint agriculturist individuals and acknowledge deposits as RD/FD, and can provide a loan to them and may charge interest from them.
If you want to register your producer company then a group of ten or more individuals or at least two or more producer company can apply for Producer Company Registration. Minimum paid-up capital for the production company is about Five Lakhs Rupees only and maximum of fifteen directors but not less than five directors are allowed.
In order to apply for Producer Company Registration minimum, ten peoples or at least two producer company must be there, and there is no limit for the maximum number of members. The time holding position of director of producer company range from 1-5 years. The maximum amount of return is determined by Article of Association to be paid by the producer company.
From where the concept of Producer Company Raised?
Producer Company is registered under the Companies Act, 2013. Its objective is to harvest, produce, procure, market, sell, export, and handle the primary product of the members for their benefit. Here produce refers to the things that are grown, produced, mainly by farming. Thusly, a Producer Company usually deals with post-harvest activities & agriculture. More than 85% of the farmers in India are having little and minimal land under 2 hectares. This leads to complications in utilizing the latest technologies and it isn’t feasible for them. Here the concept of Producer Company arises whose main motive is to empower the farmer. And for a company needs to get register to work freely, therefore Producer Company Registration is required.
What are the reasons to apply for Producer Company Registration?
- Isolate Legal Entity-A Producer Company Registration allows Producer Company to work under the Companies Act and becomes a legal entity. After getting done with the process of registration, the company can utilize wide legal capacity & can property as well as cause obligations.
- Owning Property- The main benefit of Producer Company Registration is that a producer company may claim, acquire, & alienate property on the name of its own. No member can claim on the property of the producer company.
- Continuous Existence- A Producer Company has ‘ceaseless progression’, which is uninterrupted until the point that it is lawfully dissolved. A Producer Company, being a legal entity remains unaffected by the demise of any member or due to other issues and keeps on continuing irrespective of the changes in the membership.
- Simple Management- if the Board of the Management of a producer company needs to be changed then it can be done by filing forms with the Registrar of Companies. The Board of Management is responsible for controlling the activities of the producer company.
What Are the Benefits of the Producer Company Registration?
Producer Company Registration offers certain elite benefits such as being a separate entity it provides perpetuity and limited liability. It allows to easily make changes in the Board of the management simply by filing forms with ROC. It is allowed to sell, claim or enjoy or alienate any property on its own name. It offers greater creditability than that of provided by the unregistered producer company.
A Registered Producer Company allows accepting any deposits in the form of RD/FD. The Indian Income Tax Act 1961 provides exempts tax on agriculture, thus it offers tax benefits. If you are finding trouble in registering for Producer Company then contact us anytime, our experts will respond to you shortly.