Producer Company
A producer company refers to a legally recognized body that aims to improve the standard of living of farmers and to increase their income and ensure profitability. According to Companies Act 2013 a combination of 10 persons can be done to form a manufacturing company. Its main function is to import and export goods and services for the produce of the members and for their benefit. This can include production, harvesting, pooling, grading, handling, selling and exporting etc. The Producer Company gives training to its members from growing the crop to its selling. This company provides all kinds of facilities related to crop yield to its members. Through this, the members get water for irrigation, seeds to produce the crop, manure and other useful things are provided. These members are provided with facilities in everything from agricultural research to production of crops, increasing its sale. Its main objective is to protect the yield of its members and to increase the yield and provide technical services related to it. Under this company also providing the facilities of Manufacture, sale or supply of machinery, equipment or consumables mainly provides to its members. A producer company must have at least 4 board meetings in a year. This meeting should not be held in less than three months. The producer company in India cannot be deemed as a public company. The former company can have only equity share capital.
- A producer company refers to such an organization of farmers to provide all facilities related to agriculture to the members and to provide all kinds of training related to agriculture and increase their income. This company related to primarily with agriculture and post-harvest processing activities. Only agriculture can get membership in a producer company.
- A producer company is establishes for the purpose of developing agriculture and increase the income of farmers. These companies encourage the members to produce maximum crops and increase their benefits.
Minimum and maximum requirements for a producer company
Number of members
Minimum -10
Maximum- No limit (2 or more producer institutions can form a producer company)
Number of Directors
Minimum – 05
Maximum – 15
Capital required for a producer company
Minimum capital required is Rs. 5, 00,000
Advantages of a Producer Company
- The maximum income of a producer company is tax free because there are many crops in the agricultural income which are 100% tax free.
- A producer company provides its members with all the facilities of growing cutting and selling the crop. This gives them more ease to do agriculture.
- It also gives bonus to its members.
- It also provides advance loans to its members So that they can easily meet all the expenses in agriculture
- It provides all types of agricultural training to its members. With which they can increase their yield more by taking new technical works.
- This company is mainly established with the objective of providing employment to the farmers and increasing their income So that small farmers get more benefits.
- The Producer Company is also provided loan by NABARD (National Bank for Agriculture and Rural Development). These companies can take advantage of this loan to develop agriculture
Documents required for the registration of a producer company
- PAN card of all Directors & Shareholders
- Aadhar Card of all Directors & Shareholders
- Bank passbook 1st page & Latest bank statement
- Electricity bill or Rent agreement
- NOC (In case of rented property)
- DSC (Digital Signature Certificate)
- Passport size photograph of all Directors
Registration Process of a Producer Company
Registration of a producer company is similar to like a Private Limited Company. For the company registration, first of all the directors have to be DIN and DSC. Select the company name after the DIN and DSC is ready. Once the suggested name is approved by the ROC (Registrar of companies) and all the documents related to registration are absolutely correct and the registrar is satisfied with this, then he will issue a certificate of incorporation. The following steps are required to register a producer company:
Obtain a Digital Signature Certificate (DSC):
- PAN Card
- Aadhar Card
- Electricity Bill or Rent Agreement
- Bank account Statement 1st page (signed by the bank)
- Application form filled and signed
- Photo ID card issue by any government authority bearing the signature of the individual
Obtain a Directors Identification Numbers (DIN):
The DIN is an essential document for company registration. This is a unique identification number given to an existing or a potential director of any company which is incorporated. The following documents are required for the DIN:
- Electricity bill or
- Bank statement copy or
- Gas bill or
- Mobile Bill or
- Any other utility bill
- Copy of PAN self-attested
- Copy of Passport
Name Approval:
It is necessary to fix the name of the company while registering. This name should not be similar to any other company, only then this name will be recognized.
Get ready the MOA (Memorandum of Association) and AOA (Article of Association)
The Memorandum of Association & Article of Association, by laws or Trust deed is the main part for an NGO. MOA contains the powers and objects of the company. The Article of Association shall contain the regulations for management of the company. These documents have to be signed by each producer.
Allocation of corporate identification of incorporation
the ROC will register the company after due verification of MOA (Memorandum of association) AOA (Article of association) and other details and will issue the certificate of incorporation (COI). The central ROC will also allocate a corporate identification number (CIN) to the company that is registered. The COI is now issued by the ROC in digital form with the digital signature certificate.
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