This article is intended to make the readers understand the meaning of the producer company.
The concept of Producer Company was introduced through companies Act 2013. Any 10 or more individuals or any two or more producer institutions or the combination of both may form the producer company. The objectives of the producer company must be in line with the objects specified in section 581-B.
Objects of Producer Company
The Producer Company is empowered to carry out activities related to production, harvesting, procurement, grading, pooling, handling, marketing, selling, exporting of the primary product of members or import of goods or services for their benefit. Processing includes preserving, drying, distilling, brewing, venting, canning and packaging of the produce of its members. Further, it can manufacture machinery, sale or supply machinery, equipment or consumables mainly to its members.
Features of Producer Company
• Producer Company can only have equity share capital.
• The minimum paid up capital requirement for incorporating the producer company is Rs 5 lakhs.
• Minimum 10 or more individuals or any two or more producer institutions or the combination of both may form the producer company.
• A producer company can have maximum 15 directors
• A producer company cannot be deemed to be a public company under any situation.
• The maximum amount of dividend to be paid by the producer company is determined by its articles of association.
Process of registration of producer company-
1. Any 10 or more individuals or any two or more producer institutions or the combination of both may form the producer company.
2. In the next step, the applicant is required to make an application for the name reservation in form 1A along with the fees of Rs.1000. Utmost care should be taken while choosing a perfect name for the company as it acts as the identity of the company.
3. Further, the memorandum of association and article of association shall be drafted as per the objectives of the companies.
4. The application of incorporation along with the required documents shall be submitted to ROC.
5.If the registrar is satisfied with the application for incorporation of Producer Company, then he/she will approve the same and issue Certificate of Incorporation within 30 days of receiving the application.