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A Producer Co-op is a legal entity created by a group of 10 or more individuals or two or more producer institutions with the intention of promoting agriculturist interests. These entities can also extend credit facilities to their members.The Act is designed to encourage cooperation between the producers.

Producer company Form

A Producer Company is a non-profit organization that produces agricultural products and services. Its members may include farmers, plantation owners, and others involved in agriculture. These producers may choose to form their company as a private or public limited company. They may be incorporated in any state, but if you live outside a state, you can establish it as a producer co-op in the country. The process of registering a Producer Company is similar to registering a Private Limited Corporation. You will need a Digital Signature (DSC) and a Director Identification Number (DIN) for the first directors of the production company. After submitting the form to the ROC, you will need to prepare a Memorandum of Association and Articles of Association. You must also file a declaration by a professional.

The objective of a Producer Company is to promote small-scale producers in low-income areas and to market their products directly to consumers. These members will receive the value of their pooled produce at the end of the financial year from the company’s directors, which is usually paid out in cash, kind, or equity shares. You can also give bonus shares to members in proportion to the number of shares you own. In addition, surplus money from the company can be distributed to the members in the form of patronage bonuses.

Whether a Producer Company is a mutual cooperative or a for-profit enterprise, it must be incorporated under the Companies Act, 1956. Its activities include manufacturing machinery and selling consumables. The Producer Company also promotes mutuality and aims to educate its members. Its activities may involve providing technical assistance, financial support, or other forms of assistance. 

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Documents Required For Producer Company Registration

Passport Size Photo

Pan card copy

Name of company

Authorized Capital

Aadhar Card Copy

Address Proof

Affidavit

Form INC 8

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