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
- Producer Company Registration Online Procedure
These are the following process of the producer company registration in India.
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
The Registrar, after pridefulness, will issue the Certificate of Incorporation (COI) within 30 days of receiving the essential documents.
The producer company registration procedure is the same as that of the Private Limited Company (PLC).
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.
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.
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.
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.
Economics 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.
Batter 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 Capacity of the 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.
Access in Address Climate Change Challanges
By supplying financial & services support systems to mobilize private assets towards climate-resilient agriculture & forestry projects.
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.
Economics 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.
Batter 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 Capacity of the 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.
Access in Address Climate Change Challanges
By supplying financial & services support systems to mobilize private assets towards climate-resilient agriculture & forestry projects.
Public Limited Company Registration In India - Eligibility Criteria
To register a public limited company following criteria are required by a public limited company to qualify for public company registration.
Documents required for a public limited company registration process
FAQ's
Few doubts important to be resolved quickly
The producer companies are public companies under the name of the producer company. Still, on the contrary, the Companies Act, 1956, section 581C, signifies that a producer company cannot be deemed a public company and shall become a corporate similar to a private company.
There are two conditions for forming a producer company. Any ten individual producers can merge to form a producer company, or two or more producer companies can together form a producer company. On the other side, if we talk about the members’ maximum limit, there is no maximum limit for the members to join a producer company.
A corporate body registered with the MCA portal for agricultural production & processing undertakings is known as a Producer Company. The formation accomplishes by a minimum of ten people and two associations.
The Producer Company registration online cost is around Rs. 27,000. Lawgicalindia Business Developers can assist you in registering your own producer company.
It does take time for the farmer producer company online registration process. Every step takes time to be verified and proceed to the next stage. At Lawgicalindia Business Developers, we complete your farmer producer company registration process within 10 to 15 days of working.
There are numerous benefits of a producer company:-
- Separate Legal Entity
- Uninterrupted Existence
- Better Credibility
- Easy Management
- Owning Property
- Limited Liability
There have numerous ways for a producer company registration online, as many platforms offer this service. Lawgicalindia is one such place to register your Company within less time and your budget.
The company requires a minimum of ₹5,00,000 as capital to incorporate a producer company.
