Producer Company Registration in Kolkata

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Frequently Asked Qustion

Who can be member in a Producer Company?
How many members are required to form a Producer Company?
What is the minimum number of directors required for formation of Producer Company?
What are the types of shares which producer Company can issue?
Whether shares of Producer Companies are transferable?

Producer Company Registration in Kolkata

Producer Company is a company registered under the Companies Act, 2013, which has the objective of production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit. Produce are things that have been produced or grown, especially by farming. Therefore, a Producer Company deals primarily with agriculture and post harvest processing activities.

Choose Producer Company because :

• A separate legal entity offering limited liability and perpetuity.
• Government by the central Government, the Producer companies offer greater creditability than that provided by unregistered producer’s organization.
• Changes in the Board of management of a producer company can easily and swiftly be made just through filing some simple forms with ROC.
• A registered Producer company entitled to own, sell, enjoy, or alienate a property in its own name.
• A producer company can accept deposit in the form of RD/FD, and give maturity as well as distribute loans to its farmer/agriculturist members, and charge reasonable interest from them.

 

Over 85% of the Farmers in India are small and marginal farmers with land holdings of less than 2 hectares. This fragmentation in farmers and farm lands, leads to disorganization and it is not viable for Indian farmers to adopt the latest technologies. By organization of these farmers into producer companies, economies of scale can be unlocked and the livelihood of farmers can be improved. Thus the concept of producer company is aimed at empowering farmers by creating clusters of farmers organized as a Producer Company.

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Easy Transfer-ability

Shares of a company limited by shares are transferable by a shareholder to any other person. Filing and signing a share transfer form and handing over the buyer of the shares along with share certificate can easily transfer shares.

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Uninterrupted Existence

Private Limited Company has 'perpetual succession', meaning uninterrupted existence until it is legally dissolved. A company being a separate legal person, is unaffected by the death or other departure of any member and continues to be in existence irrespective of the changes in ownership.

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Borrowing Capacity

Private Limited Companies can raise equity funds in India. Companies can also issue equity shares, preference shares, debentures and accept deposits with RBI permission. Banks and Financial Institutions prefer to provide funding to a company rather than partnership firms or proprietary concerns.

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Owning Property

Private Limited Company being an artificial person, can acquire, own, enjoy and alienate, property in its name. The property owned by a company could be machinery, building, intangible assets, land, residential property, factory, etc., No shareholder can make a claim upon the property of the company - as long as the company is a going concern.

 

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