- The objects of the Producer Company (specified in 581B of the act) shall relate to all or any of the following matters, namely : –
(a) Manufacture, processing, purchase, grading, pooling, storage, distribution, selling, the export of Members’ primary products or imports of goods or services for their benefit: provided that the Producer Company is entitled to carry out any of the activities stated in this clause either by itself or by any other entity.;
(b) Processing including the storage, drying, distilling, brewing, venting, canning and packaging of its Members’ products;
(c) Manufacture, selling or supply of machinery or consumables, primarily to its Members
(d) educating to its member and others on the mutual assistance principles
(e) Providing services to its member like technical services, consultancy services, training, research and development and all other activities for the promotion of the
(f) Generation, transmission, and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce;
(g) Providing insurance to producers or their primary produce;
(h) Promoting techniques of mutuality and mutual assistance ;
(i) Facilitate facilities for the benefit of Members as may be decided by the Board ;
(j) any other activity, ancillary or incidental to any of the activities referred to in clauses (a) to (i) or other activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner ;
- Every Producer Company shall deal primarily with the produce of its active Members for carrying out any of its objects specified in this section.The producer company’s members may carry out these operations on their own or through other organisations.
- Produce processing includes canning, drying, brewing, distilling, vinting, and packaging.
- Retailing or manufacturing of machinery or equipment
- Educating its members and others about the values of mutual help
- Providing technical assistance, consulting, training, R&D, and other services in order to further the interests of its members
- Power production, distribution, and transmission; revitalization of water and land resources; their utilisation, conservation, and communications pertaining to primary produce
- Producers’ or their primary produce’s insurance
- promoting mutuality and cooperation strategies
- If the board so decides, members may benefit from welfare programmes or facilities.
- Other actions that could support the mutuality tenets
Pre-Incorporation Checklist
- Any ten or more producers (individuals) can join together to create a company, but there is no upper limit on membership.
- Or, a producer company can be created by any two or more production institutions.
- For the incorporation of a producer company a minimum capital of Rs. 500,000 is required.
- A producer company should have at least 5 directors (a maximum of 15).
Note:
➲ A producer company is a registered private company.
➲ Producer Company shall be regulated by Chapter IXA of Companies Act, 1956.
➲ Voting rights for each member in the producer company shall be based on one single vote.
➲ No person who has any commercial interest that conflicts with the Producer Company’s business shall become a member of that Company.
➲ The Company’s name ends with “Producer Company Limited” which is set out in the Memorandum.
➲ The producer company’s AOA and MOA shall be prepared in compliance with the requirements laid down in section 581F and 581G.
➲ The quorum at a General Meeting shall be one-fourth of the total membership.
➲ A production company’s share capital shall consist only of equity shares.
➲ This can never be converted into a public company but it can be converted into a multi-state cooperative society.
Procedure and Documentation
Firstly members and directors are required to obtain DSC for this:
➲ PAN
➲ Photograph
➲ Aadhar or bank statement
➲ Email id
➲ Mobile number
For Incorporation Process:
➲ ID proof of proposed Directors and Subscribers (any one of them)
- Passport
- Driving license
- Voters ID card
➲ Address proof of proposed Directors and Subscribers (any one of them)
- Electricity bill of residing address
- Mobile bill
- Telephone bill
- Bank statement
➲ Address proof for the proposed company
- Proof of Office address (Conveyance/ Lease deed/Rent Agreement etc. along with rent receipts)