Compliance Solutions for Producer Company Registration
Seamlessly establish Producer Companies (also known as Farmer Producer Company or Farmer Producer Organization) with our compliance expertise, merging cooperative principles with corporate structure for enhanced productivity and mutual benefits.
Overview
Agriculture has significantly contributed in the Indian economy and its contribution is acknowledged throughout the world. Producer companies play 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. Some of the examples of leading Producer Companies in India are royal Travancore Farmers Producer Company, Sahyadri Farmers Producer Company Limited, Maahi Milk Producer Company Limited, etc.
Benefits
- Producer Company is corporate structure with the intent of supporting the producers or farmers, thus it is leading to increase the productivity of agricultural sector of the country.
- It operates on self-help basis thus support its members by providing them financial support thereby contributing the financial growth of farmers.
- Producer Company enjoys minimal regulatory control from authorities.
- It is hybrid form of cooperative society and body corporate thus enjoys benefits of both forms of business.
Minimum Requirement
- Minimum 5 Directors
- Minimum members:
- Ten or more individuals; or
- Two or more producer institutions; or
- Combination of ten or more individuals and Producer Institutions.
- No prescribed limit on maximum number of members.
- Producer Company can only have equity share capital.
- A Producer Company can only be a Private Limited Company.
Process of Registration of Producer Company
- Apply for Digital Signature of proposed members and directors of the Company.
- Determine name of the Company and check the availability of the same in accordance with section 4 of the Companies Act, 2013 and Rule 8 of the Companies (Incorporation) Rules, 2014.
- File name reservation 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.
- Proposed directors of the Company can also apply for DIN in same form if they are not holding DIN prior to application. Maximum three directors can apply for DIN allotment at the time of application. Therefore, in case of Producer Company, the DIN of other Directors is applied in advanced in the Web-Form DIR-3.
- Applicants needs to submit below mentioned documents with Web 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.
- If the registrar is satisfied that all the requirements of the Act have been complied with in respect of registration and matters precedent and incidental thereto, he shall, within 30 days of the receipt of the documents required for registration, register the memorandum, the articles and other documents, if any, and issue a certificate of incorporation under this Act.
- After incorporation, Company is required 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
FAQs
A body corporate having objects or activities specified in Act and registered as Producer Company under this Act.
Any person engaged in any activity connected with or relatable to any primary produce.
A Producer Company or any other institution having only producer(s) or Producer Company/Companies as its member(s), having any of the objects referred in Section 378B of the Act, which agrees to make use of the services of the Producer Company or Producer Companies as provided in its articles is called a Producer Institution.
Minimum Directors: 5
Maximum Directors: 15
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.
- Any ten or more individuals, each of them being a producer; or
- Any two or more producer institutions; or
- A combination of ten or more individuals and producer institutions.
- Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit;
- Processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its Members;
- Manufacture, sale or supply of machinery, equipment or consumables mainly to its Members;
- Providing education on the mutual assistance principles to its Members and others;
- Rendering technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its Members;
- Generation, transmission and distribution of power, revitalisation of land and water resources, their use, conservation and communications relatable to primary produce;
- Insurance of producers or their primary produce;
- Promoting techniques of mutuality and mutual assistance;
- Welfare measures or facilities for the benefit of Members as may be decided by the Board;
- Any other activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner;
- Financing of procurement, processing, marketing or other activities specified in clauses (1) to (10) which include extending of credit facilities or any other financial services to its Members.
- Every Producer Company shall deal primarily with the produce of its active Members for carrying out any of its objects.
