How to start producer company for farms

1. How to Start farming Producer
Company
From Startup Scratch
9971504105
startupscratch@gmail.com

3. Producer Company details;-
• 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.

5. Types of Producer formation people
• Ten or more individuals, each of them being a producer
• Two or More Producer institutions
• Combination of ten or more individuals and producer institution

7. What a Producer Company can do ?
• 1. Production, procurement, harvesting, pooling, grading, marketing, handling, selling
and export of the primary produce of members. Provided that the Producer Company
shall continue these activities themselves or through other institution;
2. Processing including drying, preserving, brewing, venting, canning, distilling and
packaging of the produce;
3. Manufacture, supply or sale of machinery, equipment or consumables to its members;
4. Imparting of knowledge on the mutual assistance principles to its members;
5. Delivering technical services, consultancy services, training and other activities for the
promotion of interests of its members;
6. Insurance of producers and or the primary produce.

9. Benefits of Producer Company:-
• Union Budget has proposed ,Any Producer company making a
turnover of up to 100 Crores and earning profit out of the same, will
now not need to pay any corporate tax, 100% Tax deduction has been
allowed by proposing an extension to Section 80P of Income Tax Act.

11. Benefits of Producer Company:-
• Members’ benefits:
• Members will initially receive only such value for the produce or products pooled and
supplied as the directors may determine.
• The withheld amount may be disbursed later either in cash or in kind or by allotment of
equity shares.
• Members will be eligible to receive bonus shares.
• An interesting provision is for the distribution of patronage bonus [— patronage bonus
means payment out of surplus income to members in proportion to their respective
patronage (not shareholding).

13. Conditions for Producer Company
• Minimum No. of 10 member (individual).
• Share capital of a Producer Company shall consist of equity shares
only
• Name of the company shall end with the words “Producer Company
Limited”.
• Minimum 5 and not more than 15 directors

14. •From Startup Scratch
•9971504105
•startupscratch@gmail.com
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