Producer Company Registration in Surat
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Brief about Producer Company Registration in Surat
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.
meaning of 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 producers 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.
Who can form Producer Company Registration in Surat
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.
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. By doing business in a form of company enables farmer producer to avail professional advice as well as a 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 such scenario, one may become a member of a producer company registration in surat by inviting the sufficient amount of money which he can afford. Thus, the liability of the individual restricts to the extent of his contribution in the company.
A good return of money
By making a company, a farmer can get a good deal from various multi national 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
At least 10 members are required to form producers company.
no, as a producer company you can only do those businesses which are mentioned under the object clause of company.
No, you can only have equity share capital of the company. Producers companies are not allowed to have any other share other than equity share capital in their capital structure.
No, members can contribute as many amount as they want to invest in a company.
such companies must have minimum 5 lakh rupees of share capital.
