Producer Company is a company registered under the Companies Act 2013 and carry on of the following activities: Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of members or import of goods or services for their benefit; Processing including preserving, drying, distilling, brewing, venting, canning and packaging of produce of its members; and Manufacture, sale or supply of machinery, equipment or consumables mainly to its members.
It is a processing including preserving, venting, drying, distilling, brewing, canning and packaging of the produce of its members; and Manufacture, sale or supply of machinery, equipment or consumables mainly to its members.
Features of Producer Company
i. The company is treated as a private limited company.
ii. These companies are limited liabilities and limited only by share capital.
iii. The maximum number of members can be more than 50.
iv. It shall never become a public (or deemed public) limited company.
Why Producer Company?
To offer a statutory and regulatory framework that creates the potential for producer-owned enterprises to compete with other enterprises on a competitive footing. To provide for the method of formation and registration of “Producer Companies” which, inter carries the principles of “mutual assistance” and “Co-operation” within the more liberal regulatory framework afforded by the company law with suitable adaptation. To provide an opportunity (on a purely voluntary basis), to the existing large multi-state cooperative institutions and societies, to voluntarily convert themselves into the new form of producer companies.
i. Minimum 5 directors are mandatory to run a producer company. All directors must possess DIN and DSC.
ii. Minimum paid-up authorised capital to incorporate Producer Company is of Rs. 5 lakh.
TO INCORPORATE THE PRODUCER COMPANY ONE NEEDS TO DO:
- Choose a name
- Have a Company address
- Appoint minimum of 10 members out of which appointment of five directors is mandatory.
- Register Producer Company with MCA.
For Registered Office Address One needs:-
If, Owned Premises: Any latest utility bill i.e. Electricity bill/water bill/mobile bill in the name of the owner which should not be older than two months + NOC from the owner.
If, Rented Premises: Any latest utility bill i.e. Electricity bill/water bill/mobile bill in the name of the owner which should not be older than two months + NOC from the owner + Rent agreement/Rent receipt.
Any of the following combination of producers can incorporate a producer company:
- Ten or more producers (individuals)
- Two or more producer institutions
- Combination of the above two
Procedure of Registration
i. Making of DIN and DSC
iii. Other documents deemed necessary.
iv. Filing application for Incorporation of the company (Form No. INC-29)
A producer company is thus a hybrid between a private limited company and a cooperative society. It combines the goodness of a cooperative enterprise and the vibrancy and efficiency of a company. It accommodates the unique elements of cooperative business with a regulatory framework similar to that of a private limited company.