Producer Company Registration in India
Producer company registration in India is a group of members aimed in the production or primary produce. Producer Company shall have minimum paid-up capital Rupees five lakhs to form a company. To incorporate Producer Company minimum ten individual members or two producer institutions are required. This must be registered under the Companies Act, 2013 and doesn't put any limit on maximum members to form Producer Company.
In a producer company, you can have farmers as member and give the facility to accept the deposit in the form of FD/RD and provide them maturity as well as provide loans and charge the interest on the loan amount from them. Main reason behind this producer company to have prime focus on benefits of the production, harvesting, Procurement, marketing or import of goods and service.
If average annual turnover of Producer Company exceeds Rupees five crores in each of there consecutive financial year, it is required to appoint a full time secretary. Amount of dividend to be paid by Producer Company is defined in Article of Association.
Producer Company cannot be a deemed public company in any situation. Voting right of members of a produced company in considered one vote per member.