farmer producer company registration
producer company registration
A Farmer producer company is a corporate body registered as a Producer Company under the Companies Act 1956 (As amended in 2002). It’s prominent for producing, harvesting, processing, grading, handling, marketing, selling, and exporting primary crops or importing goods or services functioned for profit. It also includes promoting mutual assistance, welfare measures, financial services, producers’ insurance, or their primary produce. Provisions to Section 465(1) of the Companies Act, 2013 states that provisions of Part IX-A of the Companies Act, 1956 shall be significant to a Company in a manner as if the Companies Act, 2013 has not been cancelled until a particular Act legislates for Producer Companies. Accordingly, Part IX of the Companies Act of 1956 would continue for producer companies.
Pre-registration requirements to set up a Producer Company
- There should be at least 5 directors and 10 members to set up a Farmer Producer Company.
- It must need minimum paid-up capital of Rs. 5,00,000 to form the Company as per the requirements.
- The Company can have as many members as they want as there is no maximum limit of the members.
- The Indian Producer Company can not be considered a public company.
- The former Company can have equity share capital as per the rules.
- There should be at least 4 board meetings yearly, and the maximum gap between two consecutive Board Meetings shall be 120 days.
Producer Company Registration Online Procedure
1. Farmer Producer Company Formation
A Producer Company formed by ten or more individuals or by a combination of ten or more individuals as per the norms produced by organizations
2. The Farmer Producer Company must fulfil its objectives as specified in the Act
The Registrar, after pridefulness, will issue the Certificate of Incorporation (COI) within 30 days of receiving the essential documents.
3. Farmer Producer Company registration process
The producer company registration procedure is the same as that of the Private Limited Company (PLC).
4. Acquire Digital Signature Certificate (DSC) and Director’s Identification Number (DIN)
The foremost step is to obtain a Digital Signature Certificate (DSC) along with a Director’s identification number (DIN) from all the Directors with self-attested copies of documents like PAN, Aadhaar card, and contact details.
5. File the proposed company
The following step is to file the proposed company name in FORM-1A with the particular state’s ROC and the prescribed charge of the procedure. Once the name is available, the ROC informs about the availability of the company’s name.
6. Draft the necessary documents
After the ROC abide, you must draft the required documents like the Memorandum of Association (MOA) to incorporate the company’s articles and enlist the amount of share capital, along with Articles of Association (AOA) to contain the by-laws of the Company.
Company Registration Procedure
Documents required for Producer Company Registration in India:
- Identification proof (PAN Card/ Passport) of all the directors and shareholders.
- Passport of all the directors and shareholders.
- Passport-sized photographs of all the directors and shareholders.
- Copy of any Utility bill as residential proof.
- In the case of rented property, a scanned copy of the Rent agreement and NOC from the owner.
- In the case of owned Property, a copy of Property Papers.
Benefits of farmer producer company online registration
Limited Liability
All enterprises can run the risk of being unable to reimburse their liabilities. An individual producer would be liable for all the enterprise’s debts. The producer company’s members have limited liability. Therefore, we would lose only the amount invested in the company, and the directors’ personal property would be safe.
Economies Of Scale
Only a few Indian farmers own over two acres of land. Therefore, most farmers need assistance to safely unlock the advantages of economies of scale. With a producer company, multiple farmers can work collectively and lower costs, reduce risk, and even access better credit facilities. It enables better planning and bargaining power with buyers.
Better Management
A single farmer can manage the entire enterprise and work within a producer company and divide it between its directors. The Board of Management governs the entity, which has a tenure of five years. Also, a producer company has a separate legal existence, which means that it does not affect by the demise of any of its members.
Increase the bargaining ability of farmers
By coming together and pooling their resources, farmers in a Farmer Producer Company can negotiate better prices for their products with consumers.
Help to reduce wastage and losses
By toiling together, producer companies can process and transport their produce, diminishing wastage and ensuring that farmers get a reasonable product price.
Enhance access to credit
By forming a legal entity, farmer-producer companies can access government schemes and loans, which they can utilize to fund infrastructure and other resources.
Furnish a platform for knowledge sharing
Farmers can learn from each other’s experiences through farmer-producer companies and access the latest technologies and best practices.
Equip smallholder farmers with a voice
In an increasingly packed marketplace, they must have a robust voice in the decision-making processes affecting them.
Assist in Address Climate Change Challenges
By supplying financial & services support systems to mobilize private assets towards climate-resilient agriculture & forestry projects.
FAQ's
Few doubts important to be resolved quickly
1. Is a Producer Company a Private or a Public Company?
2. Who can form a producer company?
3. What is Producer Company Registration?
4. What are Producer Company registration online fees?
5. What time does it take for your farmer producer company registration process?
6. What are the benefits of the Producer company?
7. From where to register for a producer company?
8. What is the Minimum Capital Required to form a Producer Company?
Packages For Producer Company Registration
GOLD
- Registration within 15 days
- Authorised Capital upto 15 lacs*
- 5 DIN & 10 DSC
- Certificate of Incorporation
- MOA, AOA, PAN, TAN, ESIC
- GST Registration
- Udyam Registration
- Professional Website
- 1 year Domain & Hosting
- Basic On-Page SEO
- Google Analytics & Web mails
- Iso 9001:2015
- Commencement Certificate
- Trademark Registration
- NGO Darpan Registration
- Auditor Appointment
- ITRs of All Directors & Company
- Audit & Annual Compliances
PLATINUM
- Registration within 15 days
- Authorised Capital upto 15 lacs*
- 5 DIN & 10 DSC
- Certificate Of Incorporation
- MOA, AOA, PAN, TAN, ESIC
- Udhyam Registration
- GST Registration
- Professional Website
- Website Support for 1 year
- 1 year Domain & Hosting
- Basic On-page SEO
- Google Analytics & Web mails
- Iso 9001:2015
- Commencement Certificate
- Trademark Registration
- Auditor Appointment
- ITRs of All Directors & Company
- Audit & Annual Compliances
DIAMOND
- Registration within 15 days
- Authorised Capital upto 15 lacs*
- MOA, AOA, Pan, Tan, e-copy
- 2 DIN & DSC
- Certificate of Incorporation e-copy
- Professional Website
- 1 year Domain & Hosting
- Basic On-Page SEO
- Google Analytics & Web mails
- GST Registration
- Udyam Registration
- Iso 9001:2015
- Trademark Registration
- Appointment of Auditor
- Commencement Certificate
- Audit & Annual Compliances
- ITR of Company