Producer Company Registration

The meaning of Producer Company is a legal entity  and recognized body of some people or  a group of people and a group of institutation, Who is working to improve lifestyle of Farmerss, and their way of farming. This Company can be formed by atlealt 10 individuals or atleast  2 Institution or also can be formed by the combination of Institution and group of people, As per Company Act 1956. Main moto of producer company can be any one of them like :-

• Production 
• Harvesting
• Procurement
• Grading
• Pooling
• Handling
• Marketing or 
• Export

Check Criteria before Incorporation of Producer Company

• Minimum Capital required for Producer Company Registration is Rs. 5,00,000 INR. 
• Minimum numbers of Director 5 and maximum can be 15 in a producer Company.
• Producer Company can not be converted in a Public Limited Company, However it can be converted into a Co-Operative Society in multi states.

Benefits of a Producer Company 

• Members of Producer Comapany receive the value of grouped and supplied product as determined by the Director at initialiy and leter it will be delivered in the form of cash, or shares, or in kind.
• Members of Producer Company will be entitled to receive bonus share in the same proportion as the share they own.
• The Surplus (after providing a provision for payment of limited return and reservation) can be given as a sponsorship bonus to the members of the Producer Company.

A special provision under the Company Acts 1956 was passed to provide loans to Producer Comapny Members. This Company also provide Financial assistant to it members  through Credit Facility, Loan and advances and NABARD Loan.