Under the Companies act, a concept of Producer Company was introduced. Now in this article, we will discuss about the Producer Company and its registration procedure. Producer Company Registration is done with the ministry of corporate affairs under the company’s act of 2013.
Let’s have an overview of a producer company
The producer company is basically defined as “Any person that engages in any activity that is connected with any relatable produce or a primary produce.
A produce could be anything that’s been produced. Like the things that are grown, like in farming for example. And so, a producer company is a legal body that is incorporated for having one or all of the following objects:-- The production of any goods and then harvesting its growth, and then obtainment and grading the fresh produce. After that pooling and handling of the goods produced and finally selling is done.
- The producer company is supposed to be dealing with the produce of the company’s active members primarily. Allowing them to be able to carry out any activities by themselves or via other such entities that will be done on behalf of the members of the producer company.
- The processing of the product includes the preservation and drying of the goods. Sometimes distilling, brewing and venting of liquid product. At times canning and then packaging of the produce, that’s been produced by the company members.
- It can provide you with the education on assistance principals that will be mutual among the company’s members and others.
- The producer company renders technical services along with the services of the consultancy and training research and development. Along with other activities for the promotion of the respective interests of their company’s members.
- The primary produce should be relatable to the activities in the producer company. It could be the generation of power, its transmission and distribution among regions for its use. It could also involve revitalization of the said resources like land and water, then their use and water conservation also through the communication.
- There should also be the welfare measures taken to facilitate the benefits that can be given to the producer company's members. This will usually be decided by the board.
- The producer company will have to finance the procurement and then process and involvement in the marketing or any other activities which will include an extension of the credit facilities or any other services involving finances to the producer company’s members.
How to Apply for Producer Company Registration?
For the producer company registration in India, following combination is necessary:
The individuals should be in two or more in number as members and all should be producers. It could also be two or more institutions of production or a combination of ten or more individuals and production institutions.
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