Online Producer Company Registration in India
In India, a Producer Company is a recognized group of farmers working together to enhance their living standards and ensure better support, income, and profitability. According to the Companies Act, of 2013, this type of company can be formed by 10 people or more, two institutions or more, or a combination of both, all sharing a common business objective. Producer Company Registration in India is a straightforward process, but seeking expert assistance from services like RegisterKaro can simplify the entire registration procedure for you.
The primary goal of a Producer Company is to collectively handle activities like procurement, pooling, production, marketing, harvesting, and selling of products and services for the benefit of its members. It serves as a bridge for transforming cooperatives into corporations and promoting cooperative development. The essence of a Farmer Producer Company in India is to uplift financially struggling farmers through collaboration and joint efforts.
What is a Farmer Producer Company?
Activities Performed by a Producer Company in India
Following is the list of activities performed by a Producer Company in India:
1: Provide education to the mutual support principle to its members & others
2: Activities for the promotion of the interest of their members
3: Insurance of producers/their primary produce
4: Sale, supply, or manufacture of equipment, machinery, or consumables mainly to their members
5: Processing includes distilling, canning, preserving, brewing, packaging, drying & venting its members’ producer
6: Provide technical services, training, R&D, consultancy services & all other activities to promote its members’ interests
7: Promoting unique techniques of mutual & mutuality support
8: Financing of procurement, marketing, processing, or other activities which comprise extending the credit facilities or any other financial services to their members
9: Welfare measures/facilities for the members’ benefits as decided by the Board
10: Any other activity, similar to any of the actions which promote or encourage the principles of mutual support among the members in any different manner.
Different Types of Producer Companies in India
Agricultural Producer Company: This type of Producer Company is set up by agriculturalists, farmers, or producers who are involved in the crop’s cultivation, poultry, or dairy farming. The primary objective of an agricultural company is to increase the income of its members & improve their agricultural practices.
Sericulture Producer Company: It is set up by various individuals who are involved in the production of silk like silk reelers, weavers, or farmers. The primary objective of this Company is to improve the quality of silk produced, increase its availability & provide better marketing opportunities.
Horticultural Producer Company: It is established by individuals who are involved in horticulture like flowers, plants, growing fruits, or vegetables. The primary objective of this type of Company is to improve the quality of its products.
Handloom Producer Company: This type of Producer Company is set up by individuals who are involved in handloom weaving/handloom fabric production. The primary objective of a handloom company is to improve their products’ quality.
Loans & Investments under Producer Company
1: Loans & Advances
Loans & Advances are provided to the members against security, repayable within a period not more than 7 years from the date of loan disbursement of such loans or advances.
2: NABARD Loan
In India, NABARD provides support & financial support to meet the requirements of Producer Companies. In 2011, NABARD set up a Rs. 50 crores PODF out of its operating surplus.
3: Credit Facility
This is available to any member for not more than 6 months (such facility must be in association with the business).
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