Producer Company (PC) is a legal form of the company. In 2002 an Act was passed in Parliament and this legal form was created. It takes care of the flaws in the cooperative socities but keeps its strengths. It has also borrowed the strengths of the corporate companies. According to this new law, only farmer – producers can be members of the Producer Company and the farmer members themselves will manage this company. Paid staff can be employed to help the farmer- producers run the Producer Company. These Producer Companies will be promoted by the farmers, will be run by the farmers and for the benefits of the farmers. Over the years, the surplus (if any) would be shared among the farmers only.
Producer Company is established so that it can improve returns to farmers through
1. Collective inputs purchase
2. Collective marketing
4. Increasing productivity through better inputs
5. Increasing knowledge of farmers
6. Ensuring quality
Minimum ten individuals or two producer institutions or any combination of ten individuals and producer institutions are required for incorporating a Producer Company. There is no limit on the maximum number of members of a Producer Company.
Minimum five and maximum 15 directors are required for a producer company.
Yes, producer compnay needs to do annual filling with ROC each year. Further it has to must maintain books of accounts to comply with statutory audit requirements and submit income tax returns.
The Director of producer company needs to be over 18 years of age and must be a natural person. He must be involved in farming activities.
Any individual farmer or producer institutions can become a shareholder in producer company.
No, Producer Company can have only equity share capital.
No, you needn’t be available in person, producer company incorporation process is online. A scanned copy of documents can be sent to us via mail, and we will handle the rest.