Agriculture has significantly contributed in the Indian economy and its contribution is acknowledged throughout the world. Producer companies plays a pivotal role in strengthening the agriculture sector by supporting the producers of agriculture products in form of a corporate structure. Thus, concept of producer company was introduced which basically takes all the features of a cooperative society and merged with the framework of a body corporate. Under Producer Company, Basically group of farmers comes together to act as member of producer company to carry agricultural business on self-help basis with an intention to earn profit and provide help to each member of its company through democratic management.
• Producer Company is corporate structuring for agricultural activities thus it increases the productivity in agriculture.
• It operates on self-help basis thus support its members by providing them financial support.
• Producer Company enjoys minimal regulatory control from authorities.
• It is hybrid form of cooperative society and body corporate thus enjoys benefits of both form of business.
1. Apply for Digital Signature of proposed members and directors of the Company.
2. Ascertain name of the Company and check the availability of the same in accordance with section 4 of the Act and Rule 8 of the Companies (Incorporation) Rules 2014.
3. File name application in PART A of web based form SPICE+, applicant can file two proposed name in this web based form, after approval of name, file incorporation documents in E form Spice.
4. Proposed directors of the Company can also apply for DIN in same form is they are not holding DIN prior to application. Maximum three directors can apply for DIN allotment at the time of application.
5. Applicants needs to submit below given documents with E Form Spice. • Memorandum of Association • Articles of Association • Proof for Registered Office • Declarations in prescribed format for engagement in agriculture activity • Id and Address proof for subscribers and directors etc.
6. After scrutiny by the Registrar at Central Registration Centre, in case of any deficiency the Registrar may call for additional documents or clarification after providing a chance to resubmit form in 15 days, however if all the documents and details are appropriate than Registrar will issue Certificate of incorporation in form INC-11.
7. After incorporation, Company is require to file a declaration in form INC-20 A within 180 days of incorporation. This declaration will state that that every subscriber to the memorandum has paid the value of the shares agreed to be taken by him and Company has verified its Registered Office.
What is included in this
1. 2 Digital Signature Certificate (DSC)
2. 2 DIN;
7. Assistance in opening of Bank Account;
8. Certificate of Incorporation;
9. 24/7 assistance;
10. Time to time legal updates;
11. Follow-up with the MCA
1. What is producer Company?
A body corporate having objects or activities specified in Act and registered as Producer Company under this Act
2. Who is a producer?
Any person engaged in any activity connected with or relatable to any primary produce.
3. What is producer institution?
A Producer Company or any other institution having only producer or producers or Producer Company or Producer Companies as its member • whether incorporated or not • having any of the objects referred in the Act which agrees to make use of the services of the Producer Company or Producer Companies as provided in its articles.
4. What is Minimum and Maximum Number of Directors for Producer Companies?
Minimum Director: 5 Maximum Director: 15
5. What is Maximum Number of Member for Producer Companies?
The formation of producer company is done as private limited company but the provisions of maximum number of members as applicable on private company does not apply in case of producer company To summarise there is no maximum limit on number of members of Producer Company.
6. Who can form a Producer Company?
• Any ten or more individuals, each of them being a producer • Any two or more producer institutions • A combination of ten or more individuals and producer institutions
7. Can a producer Company carry business of other products?
1. Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit;
2. Processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its Members;
3. Manufacture, sale or supply of machinery, equipment or consumables mainly to its Members;
4. Providing education on the mutual assistance principles to its Members and others;
5. Rendering technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its Members;
6. Generation, transmission and distribution of power, revitalisation of land and water resources, their use, conservation and communications relatable to primary produce;
7. Insurance of producers or their primary produce;
8. Promoting techniques of mutuality and mutual assistance;
9. Welfare measures or facilities for the benefit of Members as may be decided by the Board;
10. Any other activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner;
11. Financing of procurement, processing, marketing or other activities specified in clauses (1) to (9) which include extending of credit facilities or any other financial services to its Members.