Easily Start a Producer Company
Complete solution for starting a Producer Company with a minimum of ten producers, including incorporation of company as producer company.
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Producer Company Registration
Producer Company could be a company registered under the Companies Act, 2013. It consists of a group of people involved in the production of primary produce or having one or additional objectives with reference to primary produce. In a producer company, you'll appoint agriculturist members and accept deposits in the form of RD/FD and provide them maturity as well as distribute loans to your farmer members and charge interest from them.
Over 85% of the Farmers in India are small and marginal farmers with land holdings of less than 2 hectares. This fragmentation in farmers and farm lands ends up in disorganization and it is not viable for Indian farmers to adopt the most up-to-date technologies. By organization of those farmers into producer firms, economies of scale are often unsecured and therefore the support of farmers is often improved. Thus the concept of Producer Company is aimed to empowering farmers by creating clusters of farmers organized as a Producer Company.
ADVANTAGES OF PRODUCER COMPANY REGISTRATION
Separate Legal Entity
A producer company could be a legal entity and a legal person established under the Act. Therefore, a producer company has wide legal capability and might own property and additionally incur debts. The members (Directors) of a producer company haven't any liability to the creditors of a producer company.
A producer company has 'perpetual succession’, that's continued or uninterrupted existence till it's legally dissolved. A producer company being a separate legal person, is unaffected by the death or alternative departure of any member however continues to be living regardless of the changes in membership.
A producer company enjoys better Credibility compared to unregistered producer organizations. Producer firms are registered and monitored by the Central Government. Producer Organization are on the other hand governed and monitored by State Governments.
The Board of Management of a producer company is often simply modified by filing easy forms with the Registrar of Companies. The Board of Management of a producer company controls the activities of the producer company.
A producer company being a legal person, will acquire, own and alienate property in its own name. No member will create any claim upon the property of the producer company as long because it could be a going concern.
Limited Liability means the liability of its members are limited to the extent of their share capital in the company and call money if any unpaid. In a Producer Company, the members are not held personally responsible for the liabilities of the Producer Company.