Producer Company

Producer Company & company registrations under the Companies Act, 2013, which has the objective of production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit. Produce are things that have been produced or grown, especially by farming. Therefore, a Producer Company & company registrations deals primarily with agriculture and post harvest processing activities.

Over 85% of the Farmers in India are small and marginal farmers with land holdings of less than 2 hectares. This fragmentation in farmers and farm lands, leads to disorganization and it is not viable for Indian farmers to adopt the latest technologies. By organization of these farmers into producer companies, economies of scale can be unlocked and the livelihood of farmers can be improved.

Reasons to Register a Producer Company

Easy Management

The Board of Management of a producer company & company registrations can be easily changed by filing simple forms with the Registrar of Companies. The Board of Management of a (PC)producer company controls the activities of the PC.

Uninterrupted Existance

A (PC) has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved. A (PC), being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.

Owning Property

A (PC) being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No member can make any claim upon the property of the PC as long as it is a going concern.

Better Credibility

A (PC) enjoys better credibility when compared to unregistered producer organizations. PC are registered and monitored by the Central Government. Producer Organization are on the other hand governed and monitored by State Governments.

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