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Producer company

Producer company

Producer companies are bodies corporate registered under the Companies Act to carry out any of the following activities:

(a) production, harvesting, processing, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit;
(b) rendering technical services, consultancy services, training, education, research and development and all other activities for the promotion of the interests of its Members;
(c) generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce;
(d) promoting mutual assistance, welfare measures, financial services, insurance of producers or their primary produce;

Producer companies are a hybrid between a private limited company and a co-operative society combining the efficiency of a company and the goodness of a co-operative. Name of the company shall end with the words “Producer Company Limited”. On registration, the Producer Company shall become a body corporate as if it is a private limited company. There is no limit for maximum number of members. The Producer Company shall not, under any circumstance, become or be deemed to become a public limited company. At Legaljini, we can help you to incorporate Producer Company

 

Advantages of Producer company

Perpetual Succession:

An incorporated company has perpetual succession. Perpetual Succession means the company shall continue to exist even if the member dies or ceases, etc. Producer companies are not affected by the status of their owner when it comes to their existence. Changes within the management does not bring any affect to the identity of the company, the Company will remain the same with same privileges, immunities, estates and possessions. The Company shall continue to exist till its wound up in accordance with the provisions of the relevant law. Death or inability to continue of owner does not hinder the proceedings of the company.

Limited Liability:

The producer company enjoys the benefit of limited liability. The liability of the company is different as from its members of a company. Liability for debts incurred by the company lies in the company itself and not on the members. If anything happen to the company, its members are personally affected.

Group of people:

No single individual has to set up the business themselves, they have the support and money of other workers. If the business wants to enter financial difficulties, the workers could put together their own money.

Owning Property

A producer company being an entity, can acquire, own, enjoy and alienate, property in its own name. No member can make any claim upon the property of the producer company as long as it is a going concern.

Producer company Process

A minimum of two designated partners are required to form a LLP.

01

Incorporate

Any of the following combination of producer can incorporate Producer Company

  • a. Any ten or more individuals, each of them being a producer
  • b. Two or more producer institutions
  • c. A combination of ten or more individuals and producer institutions

02

Digital Signature Certificate

Obtain Digital Signature Certificate (DSC) for the proposed director/s.

03

DIN Number

Obtain Director Identification Number (DIN) for the proposed director/s.

04

Application

Select a suitable company name and forward the application to Ministry of Corporate Affairs (MCA) for availability of name.

05

Drafting

Draft its Memorandum of Association (MOA) and Articles of Association (AOA).

06

Documents

Sign and file various documents including MOA & AOA with the Registrar of Companies (ROC) electronically

07

Payment

Payment of requisite fees to Ministry of Corporate Affairs along with the stamp duty.

08

Certificate

Obtain Certificate of Incorporation.