What is a Producer Company?

A Producer Company is a formally established group of farmers or agriculturists aimed at enhancing their quality of life, financial support, and income. It combines elements of private limited companies and cooperatives to facilitate cooperative businesses and transitions existing cooperatives into company structures.

What are the primary objectives of a Producer Company?

The main goal of a Producer Company is to improve the livelihoods of its members and ensure the long-term viability of their resources, incomes, and profitability through activities related to production, marketing, sale, and export of primary products.

What legal framework governs Producer Companies in India?

Producer Companies are governed by the provisions outlined in Section 465 of the Companies Act, 2013, with necessary modifications under Part IX A of the Companies Act, 1956. The objectives align with the activities specified in Section 581B of the Companies Act 1956.

What are the advantages of starting a Producer Company?

Benefits include a hybrid structure combining professional management with mutual benefits, ownership by primary producers, limited liability, minimal capital requirements, flexibility in membership, and autonomy without government or private equity stakes.

How is membership structured in a Producer Company?

Membership is exclusive to primary producers or producer organizations, attained through the purchase of shares. Members are central to the company's actions, establishment, dissolution, and decision-making through general meetings.

What is the governance structure of a Producer Company?

A Board of Directors oversees management, elected by members during general meetings. The Board must consist of a minimum of five directors, serving terms of five years each, with the possibility of re-election for up to two consecutive terms.

What are the minimum share capital requirements for a Producer Company?

The minimum authorized capital is Rs. 5 lakh, with the option for it to exceed Rs. 5 lakh as specified in the Memorandum of Association. The minimum paid-up capital is Rs. 1 lakh, ensuring realistic funding for the company's objectives.

What is the registration procedure for a Producer Company?

Registration involves obtaining Digital Signature Certificates (DSCs), Director Identification Numbers (DINs), name reservation, preparation of essential documents, filing of incorporation applications with the Registrar of Companies (ROC), and obtaining the Certificate of Incorporation.

What are the compliance requirements for Producer Companies?

Compliance involves rigorous financial management, including audits and reporting, taxation, share capital requirements, operational objectives emphasizing primary production, leadership by a member-elected board, profit sharing, and dissolution procedures.

How does IndiaFilings assist in Producer Company registration?

IndiaFilings offers comprehensive assistance throughout the registration process, from obtaining necessary certificates to filing incorporation applications. Additionally, they provide post-incorporation services to ensure regulatory compliance and support operational growth.

Can existing cooperative societies transition into Producer Companies?

Yes, existing cooperative societies in primary production can transition into Producer Companies under the Companies Act 2013.

What are the main activities of a Producer Company?

The main activities include agricultural advancements, processing and preservation, equipment and consumables supply, educational initiatives, technical and consultancy services, energy and resource management, insurance services, mutual cooperation, member welfare, and ancillary activities.

Is there a requirement for regular meetings in Producer Companies?

Yes, at least four board meetings yearly are required, adhering to quorum requirements.

What are the taxation considerations for Producer Companies?

Producer Companies are subject to standard corporate taxation but may qualify for agricultural activity-related tax benefits.

Can Producer Companies distribute dividends?

Yes, dividends can be distributed, capped at 20% of annual profits, in line with shareholdings.

Is there a provision for hiring professional managers in Producer Companies?

Yes, with board and member approval, Producer Companies can hire professional managers.

What are the post-incorporation steps for Producer Companies?

Post-incorporation steps may include applying for PAN, TAN, and opening a bank account in the name of the Producer Company.

Can Producer Companies operate nationwide?

Yes, Producer Companies can operate nationwide, providing flexibility to expand and conduct business freely and professionally.

How can one verify the availability of a company name for a Producer Company?

Name reservation can be done by filing Form SPICe+ with the Registrar of Companies (ROC), proposing two names in order of preference and the significance behind those names. The ROC will then approve one based on availability and compliance with naming standards. Check Name Availability with our Free Tool.

Producer Company Registration In Jharkhand

Name: Producer Company
Brand: IndiaFilings
SKU: 62
Price: 45899 INR
Availability: InStock
Rating: 4.4 (8541 reviews)

Producer company registration in Jharkhand is a company registered under the Companies Act that is setup with the mutual objectives of agricultural production and post-harvesting processing activities. A producer company is involved majorly with the import goods, selling, and distribution of the members to earn more benefits.

Put together a Producer company in Jharkhand is like a cluster of farmers who have joined hands to improve their income.

How to register a Producer Company in Jharkhand?

The process for Producer company registration in Jharkhand and a private limited company is very much similar.

At first, our incorporation experts will help in obtaining the DSC and DIN for the proposed directors of the producer company.

After the DSC and DIN are obtained an application for reserving the name is to be filed with the Registrar of Companies. Note: The name should end with ‘ Producer Limited Company’.

The incorporation application is filed for Producer Company registration in Jharkhand in the prescribed format after the ROCs name approval is received

The incorporation certificate is issued if the registrar is satisfied with the application for the producer company registration in Jharkhand.

The functioning of the producer company is similar to the private limited company. There is no limit on the number of members to register a producer company in Jharkhand, unlike a private limited company.

IndiaFilings aims to educate the Entrepreneur on the legal and regulatory requirements and be a partner throughout the business cycle. We offer support at every stage to make sure that your business is growing substantially.