Producer Company refers to a company that is registered under the Companies Act, 2013, which has the main aim for producing, harvesting, procuring, grading, marketing, selling, pooling, handling, exporting the goods of primary production of the Members or import of goods or services for their interest. Produce refers to the things that are grown or, primarily by farming. Therefore, a Producer Company deals principally with agriculture and post-harvest activities.
About 85% of the farmers in India belong to the group of small and marginal farmers having the land holdings of 2 hectares or less. This fragmentation in farmlands and farmers results in disorganization and makes it unable for Indian farmers to utilise the latest technologies. By organizing these farmers and farmlands into producer companies, economies of scale can be unfastened and living standards of farmers can be enhanced. Thus the concept of producer company is targeted at empowering farmers with the creation of clusters of farmers organized as a Producer Company.
Reasons to register a Producer company
distinct legal entity
Ease of Management
Easily Obtain GST Registration