Producer Company

“A producer company can be formed by 10 or more producers (persons involved in, or in activities related to, produce or growth), two or more producer institutions or a combination of 10 or more producers and producer institutions. Such a company can only have equity capital, require a minimum of five directors and an authorized capital of ₹ 5 lakh. The term “Producer Company” indicates that only certain categories of persons who are known as “primary producer”, can become shareholders in the Producer Company. Primary Producer means those persons who are engaged in primary agriculture activities such as:
Animal Husbandry: breeding or caring of animals in the farm.
Horticulture: Producing, growing plants, fruits or vegetables.
Floriculture: Growing Flowers.
Pisciculture: Fish farming.
Viticulture: Producing grapes.
Forestry: Preserving forest.
Re-vegetation: Rebuilding or replanting disturbed land.
Bee raising: keep bees to collect honey.

Default- In case of non-compliance of requirements laid in sections, than penalty of 10 Lakh- 1 crore can be levied ,also imprisonment of 0-3 year may be imposed on officer or director who is in default
Perpetual Succession- Private Limited Company goes on and on until it is legally dissolved. As private limited company is having separate legal identity, so it is unaffected by the death or other exit of any member and continues to be in existence irrespective of any changes in ownership.
Compliance Benefits- A Section 8 company is not required to publish its accounts or file several documents at registrar, so it is in a better position than a public or private limited company.
LIMITED LIABILITY- The greatest benefit of Section 8 Company is limited liability. Members are only liable for unpaid shares held by them and not more than that, there is no personal liability of shareholders to the creditors of a company for company\’s debts.
Members- A Section 8 company can be formed by two persons only, registered partnership firm can also be a member in its own capacity
Legal Advantage- A section 8 company has various advantages when compared to Trust or Society like improved recognition and better legal standing as it is registered as per provision of Companies Act, 2013

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Documents Required for Producer Company Registration

Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
Scanned copy of Voter\’s ID/Passport/Driver\’s License
Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill