What is a Producer Company?
Any individual involved in a close-knit or related activity to the primary producers is referred to as a producer. Thus, "Producer Company" is a catch-all for everything listed below.
Producing, gathering, purchasing, sorting, pooling, handling, marketing, reselling, and shipping the primary producers of the members or importing products or services
Goals of the Producer Company
- The production of the producer company's employees is its main priority. It may take any of the acts mentioned above, either directly or indirectly, through third parties, on behalf of the committee.
- The production of its members is processed by sterilizing, bottling, curing, distilling, fermenting, vinting, and packing.
- To create, market, or provide technology, equipment, or supplies mainly to its members. Inform its representatives and others about the idea of mutual aid.
- They encourage cooperative and supportive behaviours, providing insurance for farmers or their primary output.
- Offer all additional services, such as technical support, advising, training, and research and development, that are required to advance the interests of its members.
- Initiatives that advance the interests of its members
- Primary production includes the creation, transmission, and distribution of electricity and the communication and preservation-based regeneration of water and land resources.
- Any other action that furthers the fundamentals of mutual assistance among the representatives in any other way is related to that behaviour or not.
- Providing funding for purchasing, handling, advertising, or other activities that give its representatives access to a broader range of credit options or other financial services.
Formation Of A Farmer Producer Company
According to the Companies Act of 1956, a farmer-producer company may be established by two or more organizations, ten or more people, or a combination of both. There is no cap on the no. of attendees. One of the objectives of setting up a supplier firm should be to acquire, manufacture, gather, sort, collect, process, advertise, distribute, export the product, or import goods and services for the benefit of the people.
The farmer-producer company encourages unions to become corporations and aids in establishing cooperatives as corporations. Farmer producer company's concept attempts to help Indian farmers who have experienced financial injustice by working together and coordinating efforts.
These groups work to achieve their fundamental goals, which typically revolve around the financial advantage of the members. Farmer Producer Company does not intend this to be advantageous to the general public.
Documents Needed To Incorporate A Farmer Producer Company
The following documents are necessary to establish Farmer Producer Companies in India:
PAN and images of the current shareholders and directors
Aadhar cards, driver's licenses, passports, or voter IDs of Directors, workers, and investors for their identity proof.
Producer Proof
- Any additional proof that a member is employed, such as
- A sarpanch letter, a Khasra-Khatuni,
- An income tax return (ITR) with farm income or another document
- Registered-Home documentation
- Rental agreement, Residence proof, and Owner's letter of no objection
Pre-incorporation Legal Criteria Formation
- The business must have at least ten registered suppliers.
- The suggested organization needs to employ 200 employees and have between 5 and 15 managers if it wants to operate as a private limited corporation.
- An international cooperation society acting as a farmer-producer company must have more than 15 Members for one year after the company's foundation.
How To Register Farmer Producer Company in India?
To begin the formation process of Farmer producer companies in India, the suggested member must complete an online form in the e-form Spice+ on the Registration page. After logging in, the candidate can get the above form from the MCA portal's maintenance agreement.
An online procedure for forming a corporation exists, and it is called the Spice+ e-form. It consists of two essential parts.
Sections A and B
Part A allows the petitioner to legitimize the selected name, and Part B offers the following services:
Registration, issuance of a DIN (Director Identification Number), and distribution of a PAN (Permanent Account Number).
Opening a bank account, registering with the EPFO, registering with the ESIC, receiving a GSTIN, registering for professional taxes, and receiving a TAN (Tax Account Number).
Three different ministries operating at the federal and state levels employ an interactive digital platform called Spice+ to provide ten services. The Government of India has developed the Spice+ e-form due to the Ease of Doing Business program (EODB). Using this electronic form allows the user to register more quickly and save time and money. The Ministry of Corporate Affairs typically issues the certificate of incorporation 30 days after receiving the application.
How can Lawgical India assist you?
If you are still confused about India's farmer producer company registration process, then Lawgical India is there to help you. Plan a meeting with our experts to learn more about the Farmer Producer company, its registration process, and the documents required to register the company.
You can reach out to us if you want to learn more!
