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Producer Company Registration in Surat

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    Producer Company Registration in Surat & Gujarat

    India is an agriculturist country. The agriculture industry is backbone of Indian economy. All the major industries in India largely depends upon the agriculture industry. Around 60% of total Indian population is engaged in activities related to agriculture and the contribution of agriculture industry in India’s GVA (gross value added) is 16.5% in 2019-20.Thus, Government has to set up some legal form so as to safeguard this industry and to make available the enough opportunity of growth as well as globalization. Thus, the concept of producers company arrived in India by brainstorming of an expert committee led by Y.K. Alagh (an economist)in the year 2002. 

    What is a Producer Company?

    Producers Company can be defined as legal body in the form of company which is specifically formed to support the farmers who are engaged in the activities as mentioned below. The main purpose of forming Producer Company is to organize the agriculture industry so as to enable the farmer producer to meet their financial requirements. The producers company can only be formed for the objects as mentioned under the companies act 2013.

    When Can You Form a Producer Company in Surat?

    A Producer Company can be formed when: Any ten or more individuals, each of them being a producer or any two or more Producer institutions, or a combination of ten or more individuals and Producer institutions, desirous of forming a Producer Company Registration in Surat having its objects specified as above and otherwise complying with the requirement of the provisions of this Act in respect of registration, may form an incorporated Company as a Producer Company Registration in Surat under this Act.  
     

    When Can You Form a Producer Company in Surat?

    Organized Business Structure:

    It eliminates unorganized practices, providing farmers with professional advice and legal protection under the Companies Act.

    Limited Liability:

    Members’ liability is limited to the amount they invest, reducing individual risks.

    High Returns:

    Farmers can secure better deals with multinational companies for their products.

    Access to Financial Support:

    Registered producer companies are eligible for loans, subsidies, and grants due to their transparent structure.

    Who Can Form a Producer Company in Surat?

    Individual producers (farmers, artisans, or others engaged in production-related activities).

    Producer institutions (cooperatives, associations, or other entities).

    A mix of individuals and institutions that meet the Companies Act, 2013 conditions. 

    What are The Benefits of incorporating Producer Company Registration?

    Organized way of business:

    In India, farmers usually do business in a much unorganized way which enable the antisocial characters a chance to exploit them financially. Running a business as a company helps farmers get professional advice and legal protection under the Companies Act.

    Limited liability:

    Quite a few times, an individual may not be able to take huge risk but at the same time still wants to do a business in a legal and legitimate way. In this case, a person can join a producer company in surat by contributing an amount they can afford. Their responsibility is limited to the money they invest in the company.

    A good return of money:

    By making a company, a farmer can get a good deal from various multinational company whose raw material is basically crops and other agro products. Thus, it will help farmers to get handsome amount for their products.

    Easy availability of grants/subsidies/loans:

    A legal structure of business helps you avail the easy way of getting finance by way of loan, subsidy or grants from the government because of its transparent way of doing business. 

    Get Answers to All Your Queries

    How many members can start Producers Company?

    At least 10 members are required to form producers company.

    Can I do any other business in such company? 

    No, as a producer company you can only do those businesses which are mentioned under the object clause of company.

    Can I issue preference shares of this company?

    No, you can only have equity share capital of the company. Producer companies are not allowed to have any other share other than equity share capital in their capital structure.

    Is there any clause of minimum contribution?

    No, members can contribute as many amount as they want to invest in a company.

    What is the minimum share capital for this company?

    such companies must have minimum 5 lakh rupees of share capital.

    What business activities can a Producer Company undertake?

    Producer companies can only engage in activities mentioned in their object clause as per Companies Act 2013, primarily related to production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary produce.

    What are the registration fees for Producer Company in Surat?

    Registration fees vary based on authorized capital and professional service charges. Contact our experts for detailed cost breakdown.