A corporate body owned by farmers and primary producers.
A Producer Company is a hybrid structure that blends the benefits of a cooperative society with the discipline of a private limited company. Governed by the Companies Act, it is formed by primary producers — farmers, agriculturists, artisans or their associations — to collectively carry on activities such as production, harvesting, procurement, processing and marketing of their produce. It requires a minimum of ten individual producers or two producer institutions and at least five directors. A Producer Company gives members limited liability, professional management and better bargaining power, while profits are shared as patronage bonus and limited returns on share capital.
Groups of farmers, agriculturists and primary producers wanting a professional collective entity.
Timelines and government fees are indicative and subject to processing by the relevant authority. Approval and its timing are decided by the authority and cannot be guaranteed.
At least 10 individual producers, or 2 or more producer institutions, or a combination of both.
It gives limited returns on share capital and distributes surplus as patronage bonus based on participation.
No. It is registered under the Companies Act but retains cooperative principles of member ownership.
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