As per Companies Act, 2013, a producer company is defined as a body corporate set up to carry on or relate to any of 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;
Agriculture is the backbone of the Indian Economy. However, agriculture always has remained an unorganized sector. By way of setting up the producer companies, the farmers can come together and carry out the activities such as harvesting, production, processing, etc of the agricultural produce and can provide technical services to other farmers, resulting in increased yield of crop production leading to overall development of the Nation and the economy.
Checking the name availability of the Company and applying to ROC for obtaining the approval of the name.
Applying for the DIN and digital signatures of the Directors of the Company.
Drafting of the Memorandum and the Articles of association of the Company.
Filing/ E-filing of the all the relevant documents with the ROC and obtaining the Certificate of Incorporation of Company
Opening the bank account and applying for PAN/ TAN/ other registrations.
Every producer Company should have a minimum of 5 Directors and maximum of 15.
Yes. Since their digital signatures shall be required at the time of filing of various E-forms, thus it is compulsory for all the Directors to have DSC.
Minimum no. of members should be 10. However, there is no restriction with regard to the maximum number of members.
Since a producer company is formally of the nature of Private Company rather than a Public Company. Thus, it can never be listed on any recognized stock exchange.
Yes. A Producer Company can undertake only those activities which are specified under section 465(1) of the Companies Act 2013 i.e. production, harvesting, processing, etc.
Since the activities undertaken by Producer Companies mostly pertain to Agricultural sector, thus the income arising from sale of agricultural activities is exempt under section 10 of the Income Tax Act, 1961.