Producer Company Registration

As per the Act, the objectives of a producer company should relate to all or any of the following matters: (as given in the law)

a) Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary production of the Members or import of goods or services for their benefit, provided that the Producer Company may carry on any of the activities specified in this clause either by itself or through other institution.
b) Processing including preserving, drying, distilling, brewing, vinting, canning, and packaging of the produce of its Members.
c) Manufacture, sale or supply of machinery, equipment or consumables mainly to its Members.
d) Providing education on the mutual assistance principles, to its Members and others.
e) Rendering technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its Members.
f) Generation, transmission, and distribution of power, revitalization of land and water resources, their use, conservation and communication relatable to primary produce.
g) Insurance of producers or their primary produce.
h) Promoting techniques of mutuality and mutual assistance.
i) Welfare measures or facilities for the benefit of Members as may be decided by the Board.
j) Any other activity, ancillary or incidental to any of the activities referred to in clauses (a) to (i) or other activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner.
k) Financing of procurement, processing, marketing or other activities specified in clauses (a) to (j) which include extending of credit facilities or any other financial services to its Members.

Pre-Incorporation Checklist

• Any 10 or more producers (individuals) can join together to form a production company but there is no upper limit on the number of members.
  Or, any 2 or more producer institutions can form a producer company.
• A minimum paid-up capital is required to incorporate a producer company.
  There should be a minimum of 5 directors (maximum of 15) in a producer company.
• It can never be converted into a public company however it can be converted into a multi-state co-operative society.