a. Producer Company enjoys the status of a separate legal entity.

b. The liability of the members of a producer company is limited to the extent of the unpaid amount on the shares subscribed.

c. Producer Company provides greater credibility to its members as compared to any unregistered organization of farmers or agriculturalists.

d. Producer Company is providing the benefit of easy management. And in case the said company wants to change in its Board of management, the same can be informed to ROC (Registrar of Companies) just by filling simple forms.

e. A registered producer company can easily acquire or sell property in its name.

f. A producer company is qualified to accept deposits or give loans to the farmers at a reasonable rate of interest.

1. Any 10 or more producers (individuals) can join together to form a production company but there is no upper limit on the number of members.

2. Or, any 2 or more producer institutions can form a producer company.

3. A minimum capital of Rs. 500,000 is required to incorporate a producer company.

4. There should be a minimum of 5 directors (maximum of 15) in a producer company.

5. It can never be converted into a public company however it can be converted into a multi-state co-operative society.

6. Producer certificate is a mandatory requirement for Incorporation.

7. Basic requirement is same as a private limited company.

A Producer Company can provide financial assistance to its members through loans and advances. The Income Tax Act, 1961 under section 10(1) exempts the agricultural income. However, the exemption provided under section 10(1) for the agricultural income sometimes vary on the basis of the agricultural activity carried out. All Producer companies are private limited companies. Though it is private limited companies, its members can be more than 50 members. Breakeven Advisory will help you to own producer company in Madhya Pradesh area.