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ORGANIZATION FORMATION
Producer Company
A Producer Company is a unique business entity established under the Companies Act, 1956 (amended in 2002), aimed at empowering farmers, producers, and agriculturalists. Its purpose is to ensure that the primary producers (farmers, artisans, or agriculturists) have access to modern technology, better inputs, and efficient marketing to improve their financial well-being. A Producer Company operates with the objective of production, harvesting, procurement, grading, pooling, marketing, selling, and exporting the primary produce of its members.
Benefits of a Producer Company
1. Collective Benefits: Allows farmers and producers to pool their resources for better production, marketing, and distribution.
2. Limited Liability: Members’ liability is limited to their share capital, safeguarding their personal assets from business risks.
3. Tax Benefits: Producer Companies are eligible for certain tax exemptions and government incentives aimed at boosting agricultural production.
4. Access to Credit: A Producer Company can access loans and financial assistance from government schemes and financial institutions.
5. Better Market Access: The collective bargaining power of Producer Companies allows members to access better markets and pricing for their products.
Who Should Opt for Producer Company Registration?
1. Farmers and Agriculturists Leverage Collective Strength for Better Profits
Farmers and agricultural producers looking to collectively improve their production and marketing efforts can benefit from forming a Producer Company. It allows them to pool resources and access better technology, financial support, and market opportunities.
2. Rural Entrepreneurs Support Agricultural Communities with a Formal Structure
Entrepreneurs and individuals in rural areas can establish Producer Companies to provide structured support to local farmers and producers. This structure helps in promoting sustainable agricultural practices and enhancing the income of the producers.
3. Cooperatives and Farmer Groups Formalize Your Collective Efforts for Better Market Reach
Cooperatives and groups of farmers or producers can benefit from registering as a Producer Company. It formalizes their efforts, allowing them to take advantage of government schemes, tax benefits, and financial assistance to improve operations.
4. Artisans and Handicraft Producers Organize and Market Your Products at Better Prices
Artisans and producers of handicrafts, livestock, or other rural goods can register as a Producer Company to formalize their businesses, access larger markets, and achieve better pricing through collective bargaining.
Our Process
1. Consultation and Business Planning: We evaluate your goals and help design the best strategy for establishing a Producer Company that suits your collective needs.
2. Documentation and Filing: Handle all necessary documentation, including the Memorandum of Association (MOA), Articles of Association (AOA), and filings with the Registrar of Companies.
3. Compliance with Regulatory Guidelines: Ensure that your Producer Company complies with regulations set by the Ministry of Corporate Affairs and relevant agricultural bodies.
4. Ongoing Support and Financial Advisory: Provide advisory services for accessing government schemes, financial assistance, and market opportunities to help your company grow.
Comprehensive Services for You
Startup
Registrations
Compliance
Financial Services
Secretarial Services
ESOP (Employee Stock Ownership Plan)
Expand Your Business
Marketing Services
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Have questions? Ask us or find your answer here
A Producer Company requires a minimum of 10 individuals (producers) or two producer institutions to register. The company must be involved in activities related to production, procurement, harvesting, or marketing of primary produce.
The registration process typically takes 15-20 working days, depending on the submission of documents and approval from the Registrar of Companies (ROC)
A Producer Company can engage in activities such as production, harvesting, procurement, marketing, and export of agricultural produce, livestock, or handicrafts. It can also provide technical services, education, and financial assistance to its members.
Producer Companies enjoy tax exemptions on profits from agricultural activities and may qualify for government incentives aimed at boosting rural development and agricultural production.
Yes, Producer Companies are eligible for various government schemes and subsidies that support agricultural production, rural development, and financial assistance programs.
The liability of members is limited to the value of their shares in the company. This means that their personal assets are protected from the company’s debts and liabilities.
Yes, a Producer Company can raise loans from financial institutions and avail of credit under various government schemes designed to support the agricultural sector.
The required documents include identity and address proof of the directors and members, proof of registered office, Memorandum of Association (MOA), Articles of Association (AOA), and other relevant financial and legal documents required by the Registrar of Companies.