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Producer Company is defined under the Companies Act and its object is specified under section 581B. It is a company registered as a Producer Company under the Act. In this article, we will discuss the producer company registration procedure in detail.
Producer Company activities are related to production, harvesting, grading, pooling, handling, marketing, selling, and packaging of produce, manufacture, the sale of machinery, etc. mainly to its members, export of the primary product of the members or import of goods or services for their benefit. Other activities include generation, transmission and distribution of power and also promoting mutual assistance, welfare measures, financial services.
The producer company registration procedure is as stated below:
Pre incorporation requirements:
Spice+ shall have 2 parts-
In order to reserve name in case of new companies-
For incorporation of Company, follow the following procedure:
Producer Company is a company limited by shares, and thus the liability of the members is limited to their shares in the company.
The advantages of the producer company are following:
Benefits to Members in a Producer Company
Provided that every such member may be allotted bonus shares in accordance with the provisions contained in the act.
A producer company by passing the special resolution in the general meeting make donation or subscription to any institution or individual for the purpose of promoting the social and economic welfare of producer members or producers or the general public. The aggregate amount related to donation or subscription in any financial year shall not exceed three percent of the net profits of the producer company in the financial year immediately preceding the financial year in which the donation or subscription was made.
Producer Company cannot make directly or indirectly donation to any political party or for any other political purpose to any person by subscription.
The producer company registration procedure is similar to that of Private limited Company. In case you have any query related to Company Registration, feel free to contact Enterslice.
Read our article:Companies Amendment Act, 2020 – Key Features
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