(a) production, harvesting, processing, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit;
(b) rendering technical services, consultancy services, training, education, research and development and all other activities for the promotion of the interests of its Members;
(c) generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce;
(d) promoting mutual assistance, welfare measures, financial services, insurance of producers or their primary produce;
Producer companies are a hybrid between a private limited company and a co-operative society combining the efficiency of a company and the goodness of a co-operative. Name of the company shall end with the words “Producer Company Limited”. On registration, the Producer Company shall become a body corporate as if it is a private limited company. There is no limit for maximum number of members. The Producer Company shall not, under any circumstance, become or be deemed to become a public limited company. At Legaljini, we can help you to incorporate Producer Company
Advantages of Producer company
An incorporated company has perpetual succession. Perpetual Succession means the company shall continue to exist even if the member dies or ceases, etc. Producer companies are not affected by the status of their owner when it comes to their existence. Changes within the management does not bring any affect to the identity of the company, the Company will remain the same with same privileges, immunities, estates and possessions. The Company shall continue to exist till its wound up in accordance with the provisions of the relevant law. Death or inability to continue of owner does not hinder the proceedings of the company.
The producer company enjoys the benefit of limited liability. The liability of the company is different as from its members of a company. Liability for debts incurred by the company lies in the company itself and not on the members. If anything happen to the company, its members are personally affected.
Group of people:
No single individual has to set up the business themselves, they have the support and money of other workers. If the business wants to enter financial difficulties, the workers could put together their own money.
A producer company being an entity, can acquire, own, enjoy and alienate, property in its own name. No member can make any claim upon the property of the producer company as long as it is a going concern.