A Producer Company (PC) may be a comparatively new legal entity that features solely bound classes of person’s viz., agricultural manufacture, forest manufacture, craftsman merchandise, or the other native manufacture, wherever the members are primary producers. Producer Company as a legal entity was enacted in 2003 as per section IX-A of the Indian firms Act 1956.
Formally, an organization registered as a Producer Company beneath the businesses Act, 1956 shall relate to any of the subsequent activities classified broadly:-
- Production, harvesting, processing, acquisition, grading, Pooling, handling, marketing, selling, export of primary manufacture of the Members or product or services for his or her profit.
- Rendering technical services, practice services, training, education, analysis and development and every one different activities for the interest of the members
- Generation, transmission, and distribution of power, advance of land and water resources, their use, conservation and communications associated with primary manufacture.
- Promoting mutual help, welfare measures, monetary services, insurance of manufacturers or their primary produce.
Who can incorporate a producer company?
Any of the subsequent combination of producers will incorporate a producer company:
- 10 or a lot of producers (individuals); or
- 2 or a lot of producer institutions; or
- A mixture of the on top of (10+2)
- Solely persons WHO are engaged in or connected to primary production activity will be members and homeowners of a Producer Company.
- These corporations are termed as “Companies with restricted Liability” and also the liability of the members are going to be restricted to the number, if any, unpaid on the shares.
- The name of the corporate has got to finish with “Producer Company Limited”
- For the target of implementation of law and administration of the corporate, the Producer Company is treated as a private ltd.
Nidhi Companies are further trendy in South India and are much localized single geographic point institutions. They are mutual profit societies, as results of their dealings are restricted entirely to the members; and membership is restricted to folks.
The principal offer of funds is that the contribution from the members. The loans are given to the members at relatively low cost rates for functions like house construction or repairs and are sometimes secured. The deposits deployed by Nidhi corporations don’t seem to be lots of as compared to the organized banking sector.
Since Nidhi Companies return beneath one class of NBFCs, tally is scepter to issue directions to them in matters with relation to their deposit acceptance activities. However, in recognition of the actual proven fact that these Nidhi corporations wound their shareholder-members entirely;
RBI has exempted the notified Nidhi Companies from the core provisions of the tally Act and completely different directions applicable to NBFCs.
Websoftex Producer Company Software is an on-line internet primarily based Producer Company Software designed particularly for Producer Company with automatic posting of business information to accounts module.
Websoftex Software Solutions is a .NET primarily based centralized information on-line package for Producer Company Software with core banking operations such fastened Deposit, revenant Deposits, Daily Deposit Schemes, Loan to Customers, Monthly financial gain Schemes, Dividend declarations etc.
Our software handles the Members details, handles all Saving A/c, Current A/c, FD A/c, RD A/c, DDS A/c, management of Cheque book, Pass book and Bond, all reasonably Loan operations, Printing Loan Ledger, Automatic Interest Calculations
Who should use this software?
- Farmer Producer Company
- Process Company
- Cold Chain
- Reposition & Cold Storage house owners
- Seed Suppliers
- Agri-Machinary & instrumentation Suppliers
- Pesticides Suppliers
- Fertilizers Suppliers
- Any Business that buys from Farmers
- Any Business that sells to Farmers
The objects of producer corporations shall embrace one or a lot of of the eleven things per the Act, the lot of vital being:
- Production, harvesting, acquisition, grading, pooling, handling, marketing, selling, export of primary turn out of members or import of products or services for his or her benefit;
- process together with protective, drying, distilling, brewing, venting, canning and packaging of turn out of its members; and
- Manufacture, sale or provider of machinery, instrumentation or consumables chiefly to its members.
The other objects embrace rendering technical or practice services, insurance, generation, transmission and distribution of power and betterment of land and water resources; promoting techniques of mutuality and mutual help; welfare measures and providing education on mutual assistance principles.
The new concept of producer corporations relies on the recommendations of A knowledgeable committee LED by noted economic expert, Y. K. Alagh. The committee was asked (a) to border a legislation that will change incorporation of cooperatives as corporations and conversion of existing cooperatives into corporations and (b) to confirm that the planned legislation accommodated the distinctive components of cooperative business with a regulative framework like that of corporations.
The new kind is termed as
Producer Company', to point that solely bound classes of persons will participate within the possession of such firms. The members have essentially to be primary producers,’ that is, persons engaged in associate activity connected with, or associated with, primary turn out.
What is primary turn out? In terms of the Act it’s a product of farmers arising from agriculture as well as farming, gardening, flower gardening, pisciculture, culture, forestry, forest product, re-vegetation, bee raising and farming plantation products: turn out of persons engaged in loom, handicraft and alternative house industries: by – product of such product; and products arising out of auxiliary industries.
The members of the Producer Company area unit primary producers, and thus, area unit in want of economic help from time to time. Hence, a special provision is formed by the Act sixty one of Producer Company of giving loans to its members. the corporate will offer money help to its members through:
The credit facility, to any member, in reference to the business of the corporate, for a amount not extraordinary six months.
Loans and advances, against security mentioned in articles to any Member, owed at intervals a amount extraordinary 3 months however not extraordinary seven years from the date of disbursement if such loans or advances.
The members can initially receive the worth for the manufacture or merchandise pooled and provided because the administrators could verify. This quantity is given out later either in money or in a similar way or by allotment of equity shares.
Members are going to be eligible to receive bonus shares in proportion to the shares control by them. The excess once provision for payment of restricted come and reserves could also be given out as patronage bonus, among the Members.
Patronage bonus means that payment out of surplus financial gain to members in proportion to their several patronages. Patronage, on the opposite hand, is that the use of services offered by producer corporations to their members by participation in their business activities.
Indian economy is a rural economy. Around simple fraction of our population depends on agriculture for his or her bread and butter. But, the farmers and first producers in Bharat have had a protracted struggle, given the competition from world markets, low-profit costs etc. to handle these problems, the govt. got wind of a knowledgeable committee, semiconductor diode by AN economic expert, Y.K. Alight to seem into the matter. In 2002, they introduced the construct of Producer corporations.
Since then, they need helped primary producers gain access to credit, input, market, production technology A producer company is so a hybrid between a Pvt Ld. and a cooperative Society. It combines the goodness of a cooperative enterprise and therefore the timbre and potency of a company.
It accommodates the distinctive components of cooperative business with a regulative Framework just like that of a private ltd Therefore, it will capably be ended that the intention behind insertion of the construct of Producer Company in firms Act,1956 is to confirm a lot of helpful and simple convertible regulative Framework of such firms and it’s to be noted that whether or not it’s a Producer Co-operative registered beneath Co-operative Societies Act, or a Producer Company beneath the businesses Act, they each serve for the common purpose on serve its members and work for his or her betterment.
Websoftex Software Solutions is best in creating Producer Company Software that will mechanize your business forms, making your association more powerful and responsive, and sparing you time and cash.
Producer Company Software is made to meet your particular needs. It can be both less expensive than off-the-rack programming arrangements and, obviously, significantly more capable. You can diminish the hours expected to perform time-escalated administration and managerial assignments, enhancing productivity, driving out cost and expanding benefit.
We take after big business wide quality strategy which is characterized and quantifiable. Our procedure and philosophies are always checked, refreshed to keep pace with the new advancements in innovation and client’s needs.
Producer Company Features:
- Client Management
- Client Tracking
- Constant Update
- Mass SMS/E-mail
- SMS/E-mail Notifications
- Completely Customizable
- All Reports for Audit Purpose
- Easy to understand GUI
- Simple to Handle (without having any PC learning)
- Standardized identification Facilities
- Versatile Base Interface (discretionary)
- HR Module (discretionary)
- Stock and Inventory Module (discretionary)
- Ace Entry
- Passage Module
- Administrator Section
- Development Module
- Auto Generation Features
- Account Module
- Reports Module
- Printing Module
Each Producer Company might have least five and not more than 15 chiefs. On the off chance that any executive leaves from his post the decision should be led inside 90 days from the date of abdication of such chief. The Director should hold his office for a period at the very least 1 year however not over 5 years as might be determined in the articles. Each chief should be qualified for reappointment.
The Directors of the Board are chosen by the individuals in the Annual General Meeting. The Board may co-select at least one master chief or extra executives not surpassing one fifth of the aggregate number of chiefs. The master executive and extra chief might hold the post for the period as recommended in the articles.
Each part might get the incentive in extent to the create provided to the organization amid the Financial year;
Extra shares might be issued to the individuals;
Surplus might be paid in trade or out value offers extent to the cooperation of the individuals.
Producer Company Registration Process:
- Examined duplicate of PAN Card or Passport (Foreign Nationals and NRIs)
- Examined duplicate of Voter’s ID / Passport / Driver’s License
- Examined duplicate of Latest Bank Statement / Telephone or Mobile Bill / Electricity or Gas Bill
- Examined visa measured photo
- Example signature (clear archive with mark [directors only])
For enrollment as a Producer Company an application is required to be submitted alongside the recommended report to the recorder for enlistment as Producer Company.
Taking after fenced in areas and records are required to be submitted with along The application:
A duplicate of the extraordinary determination passed with 2/3 larger part of the part.
An announcement demonstrating the of names, locations and control of the Directors and the Chief Executive. A rundown of the individuals.