Online Registration of Producer Company in India Benefits of a Producer Company
Producer Company is a legally recognized entity formed by primary producers like farmers, artisans, and agriculturists. Introduced under the Companies Act, 1956, and regulated by the Companies Act, 2013, the primary objective of a Producer Company is to improve the financial conditions of the producers and to facilitate better opportunities for growth and sustainability. Registering a Producer Company online is a streamlined and efficient process that enables producers to harness collective strength and improve market accessibility.
Collective Bargaining: Pooling resources enhances the bargaining power of members, leading to better market prices.
Limited Liability: Members’ liability is limited to their unpaid share capital, protecting personal assets from company debts.
Separate Legal Entity: The company can own property, enter into contracts, and sue or be sued independently of its members.
Perpetual Succession: The company’s existence is not affected by changes in membership, ensuring stability and continuity.
Access to Credit: The structured nature of the company makes it easier to secure loans and grants from financial institutions.