Keeping into consideration their miserable and pitiable state, the Government decided to formulate an expert commission to examine the matter. Further, in the time 2002, the commission formulated brought the conception of Producer Companies in Indian Society. Since also, the Central Government has been working hard to elevate the status of Indian Producers
(Including Farmers and agriculturalists).
PRODUCER COMPANY
As we All know Agricultural Industry is considered the backbone of our Indian Economy because 62% of the total population directly or indirectly depends on agriculture for their living. still, our Indian farmers aren’t only unorganized but are also in a deplorable state as they’re unfit to go advanced agricultural technologies due to a deficit of finances.
Overview
What is Producer Company?
A Producer Company is a mix of a Cooperative Society and a Private Company and is a company incorporated under Part IX- A of the Companies Act, 1956, and also Section 465( 1) of the Companies Act, 2013 to deal with the primary product of its active members related to Farming. Further, the main idea or the purpose of a Producer Company includes selling, distributing and exporting where few primary affairs.
Likewise, a Producer Company can be incorporated either with ten or further members being directors, or with two or further Producer institutions, or by its combination. also, like other business structures, the liability in a Producer Company is limited to the extent of the overdue Share Capital by its members. thus, a Producer company is considered to be a Private Limited
Company under the Companies Act, 2013. still, the ceiling on the maximum number of members doesn’t apply to the same. The incorporation and regulations of Producer Company are governed and regulated by the provision of the Companies Act, 1956, read with the Companies Act, 2013, and the rules made there under.
Benefits of Nidhi Company
What are the Authorized Activities that a Producer Company can Perform?
The Authorized Activities for a Producer company are mentioned under section 581 B of the Companies Act, 1956; the detailed list is enumerated below
- product, Procurement, Harvesting, Pooling, Grading, Marketing, Handling, Selling, or Exporting of the primary agrarian yield of the Members or Import produce for their benefit.
- Processing together with conserving, distilling, drying, venting, brewing, canning, and Packaging of the agrarian yield of its members.
- Manufacturing, dealing , or supplying the outfit, ministry, or consumables primarily to its members.
- Offering education grounded on the principle of collective backing to its members and others.
- Delivering consultancy services, specialized services, training, exploration and development( R&D), and all other Authorized needed for the creation of the interest of its members.
- Generation, transmission, and distribution of the power.
- The revitalisation of both land and water coffers regarding their use, conservation, and dispatches applicable to primary yield.
- Insurance of either the directors or their primary agrarian yield.
- Promoting ways grounded on the principle of collective backing.
- Welfare installations or measures for the benefit of members as may be determined by the Board.
Benefits of Nidhi Company
A. Product Businesses
Such a Entity deals with the product, procurement, or manufacturing of primary yield.
B. Marketing Businesses
Marketing business technically refers to an establishment engaged with the marketing or creation of primary yield or provision of educational services.
C. Specialized Service Businesses
Similar establishment primarily renders educational services and training to directors. It may also be engaged with conditioning related to exploration and development.
D. Financing Business
As the name suggests, the fiscal business is the bone That offers fiscal backing to companies mentioned in this list. Their major sluice of profit comes from the interest assessed on the expended quantum
E. Infrastructure Businesses
These realities generally give the structure to directors in terms of water coffers, electricity, land application, irrigation ways, and so on.
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