farmer 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.

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.