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Producer Company Registration
Producer Company could be a company registered beneath the businesses Act, 2013, that has the target of production, harvesting, procural, grading, pooling, handling, marketing, selling, the export of primary manufacture of the Members or import of products or services for his or her profit. manufacture area unit things that are created or adult, particularly by farming. Therefore, a Producer Company deals primarily with agriculture and post-harvest process activities.
Over eighty fifth of the Farmers in Asian nation square measure tiny and marginal farmers with landholdings of but a pair of hectares. This fragmentation in farmers and farmlands results in disorganization and it’s not viable for Indian farmers to adopt the newest technologies. By the organization of those farmers into producer corporations, economies of scale is unbolted and therefore the living of farmers is improved. so the thought of producer company is aimed toward empowering farmers by making clusters of farmers organized as a Producer Company.
Advantages of a Producer Company
Points to make your decision easy
- Limited Liability: It implies that if the corporate undergoes some monetary distress due to enterprise, the non-public assets of members of the producer company won’t be accustomed to pay the debts of the corporate.
- Economies of Scale: In India, a colossal majority of farmers square measure marginal farmers with token land holdings singly. This restricts them to use the most recent technologies in farming. This ends up in lower economies of scale. A Producer Company is geared toward organizing a gaggle of marginal farmers and making certain larger economies of scale.
- Transferability: Interest in Producer Company may be simply transferred by transferring its shares. Its board of management is definitely transferable in and of itself. this is often accomplished through the filing of forms with a mythical creatures.
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