A Producer Company is a legally recognized company formed by a group of farmers, producers, or agriculturists to improve their income, productivity, and business opportunities. It combines the benefits of a cooperative society and a private limited company under the Companies Act, 2013.
At least 10 individuals (producers) or 2 producer institutions are required to form a Producer Company in India.
Yes, a Producer Company can take loans or credit facilities for its members and operations, subject to compliance with RBI and MCA norms.
There is no specific minimum capital requirement, but ₹5 lakh is generally recommended to meet operational and compliance costs.
Yes, profits can be distributed as patronage bonus or dividend to members based on their participation and shares held.