Producer Company Registration
The aim of Producer Company to empower all the marginal and small scale farmers in such a way to unlock their economies crisis and to educate them to use all latest and new technologies to lead their life in a better and improved way.
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Overview of Producer Company Registration in India
What is a Producer Company?
A company formed officially with the primary aim to improve the standard of farmers and agriculturists and it is named as a ‘Producer Company’. This type of company is formed under the Companies Act 1956, and according to the act the producer company registration can be formed with a minimum of 10 individuals or more individuals or with 2 institutions or more or with a combination of both like 10 individuals and 2 institutions. And it should have one of the following as their business aim:
- Production
- Procurement
- Harvesting
- Marketing
- Grading
- Handling
- Pooling
- Selling
- Export
To start a Producer company, the individual or the farmers have to get a Farmer Producer Company Registration according to the rules and regulations of the government.
Advantages of a Producer Company Registration in India
Limited Liability
The liabilities of the Producer Company members are limited, and their personal assets are not allowed to cover up the losses and the debt of the company.
A Separate Legal Entity
Same like a private limited company, a registered producer company is also regarded as a separate legal entity which can buy or sell land in its own name.
More Credibility
More credibility is provided to the registered producer companies when compared to the non-registered companies.
Ease To Manage
An applicant of the producer company can make desired changes in the board of management by filling up a few simple forms and submitting to the registrar of Companies (ROC)
All these advantages make the farmer producer company registration process more beneficial for all the farmers or primary producer in India. This could help the farmers in more production and better credit utilization; therefore it results in more profits for their farming produce. Altogether Producer Company is bliss for all the primary producers or farmers in India.
Checklist to form a Producer Company in India
- A minimum of 5 directors and 10 members are required to incorporate the company.
- The minimum paid-up capital needed to register a company is about Rs 5 lakhs or more.
- No limit for the maximum number of members required to incorporate a producer company
- This type of company cannot be considered or registered as a Public Limited Company
- The producer company can only own equity share capital
- The company should conduct 4 board meetings every year, and it should happen in every three months
Other Mandatory Requirements to register a Producer Company
- Only one individual or a member can be engaged in farming activities which are related to the production of primary produce and can participate in the ownership of the company.
- All the members of the company should be primary producers
- The liabilities of the members of the producer company formation are limited to their unpaid share amount
- The name of the proposed company should have 'Producer Company Limited” at the end of the name of the company.
- As per the provisions of the Companies Act, the proposed Producer Company is viewed as the private limited company
Rules and Regulations for Easy Availability of Loans and Credits
The main objective of the producer company is to empower the standard of primary producers lifestyle in India. To reach this aim, a special proviso was passed as per that loan would be sanctioned to the respective farmer producers or members of the company through:
NABARD Loan
NABARD or National Bank for Agriculture & Rural Development helps the small and regional scale farmers to meet their financial requirements. The members of Producer Company can get loans in the NABARD loan scheme.
Credit Facilities
As per the law the credit facilities would be given to the producers or members of the company for a time period of 6 months or less than 6 months.
Loans And Advances
According to the law, loans and advances would be granted to the members of the company against security for about 7 years or less than 7 years from the date of outlay of the loan.
The Activities performed by the Farmer Producer Company
As referred, farmer producer company online registration handles all the production and harvesting activities and also post-harvesting Activities of the farmers.
Following are the detail of activities performed By the Producer Company:
The producer company starts the activities from the processing of crops that includes various procedures like brewing, drying, preserving, venting, distilling, canning and packaging.
Manufacturing process includes the production on a large scale with the help of the high tech farming machines. Then they also supply and sale the necessary types of machines and equipment for better results and manufacturing.
- This company also educate the low scale farmers on how to use the new technologies in farming, This way the assistance and guidance are offered to the farmers in the right time so it will help them to grow the crops and do farming activities in better ways.
- The company also educates the members of farmer Producer Company about the mutual assistance principle.
- Provide various farming-related services such as consultancy, technical, training and other activities which help them to promote their farming activities, the above-mentioned services are done as per the requirements and the interest of the producer.
- Insurance of the primary production and producer
- Making a point to render, transmit and distribute power and best usage of water and land resources.
- The producer Company in India promotes various farming techniques related to mutuality and mutual assistance
- Financial guidance and assistance to the members of the Producer Company for marketing, procurance or other activities.
Documents Required
- Passport-sized photos of all directors and shareholder of the Producer Company
- PAN Card or Passport or Election ID Card
- Voter's ID or Passport or Driver's License
- Latest Bank Statement or Telephone or Mobile Bill
Documents needed for Proposed Registered Office (Residential Or Commercial)
- Copy of Rent agreement along with NOC from the owner of the place
- Copy of any type of Utility bills such as electricity bill
- If it is own Property then a copy of Property Papers.
Registration Procedure of Farmer Producer Company in India
The procedure starts with applying and obtaining a DSC or Digital Signature Certificate and DIN or Director’s identification number for all the directors of the producer company.
Checking name availability and Applying for the name availability for the company.
Drafting of MoA, AoA & other required documents and Filing of the EMOA and EAOA to register a Producer company
Applying for the PAN and TAN of the registering company
Certificate of incorporation will be granted by RoC with PAN and TAN
Opening a current account on the company name in an authorized bank
Actually, it would take about 7-15 days for the verification process of documents. If all the submitted documents are as per the requirements of ROC, the incorporation certificate of the producer company would be issued.
Frequently Asked Questions
Yes, a person from a foreign national can be appointed as a director but he/she obtaining valid DIN. And importantly, one director of the company must be a resident of India.
No, you don't need to personally present to incorporate a producer company as the whole registration process is online. Just you have to provide all the required documents.
No, you don't have to pay any extra fee. Our invoice will be inclusive of all, there are no any hidden charges.
Usually, we ensure speedy registration process however it completely depends upon the documents provided by an applicant and office working days. It usually takes around 30 days.
As per the Section 581C of the Companies Act, 1956, the producer Company is conceived as Public Limited Company.
A "Producer" or "Producer institution" can become a member or director of the producer company.
if the article of association provides any special rights then the producer company also can give special rights to the members of the Company.
After getting the proper approval from the board of directors, a member of the Producer Company can transfer shares with the special rights, if any.
After 3 months of becoming a member, the member of the Producer Company shall nominate an individual in a specified manner to which the shares will be invested in case of death of the member.
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