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Producer company registration
Producer Company registration is very important in order to form a Producer Company. We will complete the entire process in 14-20 days because we value your time. Before knowing the importance of the Producer company registration let us first know about a Producer company.
What is a Producer Company?
Producer Company concept in India was introduced with the objective of boosting and further enhancement of agriculture economy of India. It is all because India’s economy is mixed but with a primary focus on the activities developed in agriculture-hood. More than 65% of the population of India depends on agriculture activities for their living hood.
In a legal context, it is defined under section 465(1) of Companies Act, 2013 with reading of section 581 of Companies Act, 1956. Concisely, it can be understood as a legal recognition body of farmers/agriculturists with the purpose to improve the standard of their changes in living and ensure a good status of their available support, incomes and profitability. Under the Companies Act 2013, a Producer Company can be formed by 10 individuals (or more) or 2 institutions (or more) or by a combination of both (10 individuals and 2 institutions).
There are various activities defined under stipulated provisions for doing under the name of Producer Company with primary produce of their members or import of goods or services for their benefits are listed down:
- Selling, or
However, the objects given under section 581B of Companies Act, 2013 are as follows: “The objects of the Producer Company shall relate to all or any of the following matters, namely: (as given in the law)
- Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary production of the Members or import of goods or services for their benefit, provided that the Producer Company may carry on any of the activities specified in this clause either by itself or through other institution.
- Processing includes preserving, drying, distilling, brewing, vinting, canning, and packaging of the 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, revitalization of land and water resources, their use, conservation and communication 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 activity, ancillary or incidental to any of the activities referred to in clauses (a) to (i) or 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 (a) to (j) which include extending of credit facilities or any other financial services to its Members.”
Activities Authorised under Producer Companies
The Producer Company is required to deal with the produce of its members and is authorized to carry on any of the following activities:
- Processing (processing also includes, preserving, brewing, vinting, drying, distilling, canning and packaging) of the produce of its members;
- Manufacture, sale or supply of equipment, machinery or consumables to its producer members;
- To provide education on the mutual assistance principles to the producer members of the producer company and others;
- To render consultancy services, technical services, training, R&D and all other required activities for promoting the interests of producer members;
- Generation, transmission and distribution of power, conservation and communication relatable to primary produce, revitalisation of land and water resources,
- Insurance of the primary produce and its producer;
- To promote the techniques of mutuality and mutual assistance;
- The welfare of members as may be decided by the Board;
- Financing of procurement, marketing, processing or other activities such as extending of credit facilities or any other financial assistance to its producer members.
- Any other activity (ancillary or incidental to the main objectives of the producer company) in order to promote mutual assistance amongst the producer members and the lines of principles of mutuality.
Conditions for registering Producer Company in India
- Any 10 or more producers (Individuals) can join together to form a production company but there is no upper limit on the number of members, or any 2 or more producer institutions can form a producer company.
- A minimum capital of Rs. 500,000 is required to incorporate a producer company.
- There should be minimum 5 directors (maximum of 15) in a producer company.
- It can never be converted into a public company however it can be converted into a multi-state co-operative society.
Necessary Documents Required
- Photographs of all Director
- PAN and Aadhaar of all Director
- Company Name Suggestion
- Contact Number and Email id of all Director
- Business situation documents such as Sale Deed, Lease Deed, Rent Agreement, Agreement for Sale or others. (NOC is required in case of Rented/Leased)
- Electricity Bill / Telephone Bill (Latest Paid Copy) of such business situation place.
Government schemes for Farmer Producer Companies
Small Farmers Agri-business Consortium (SFAC) was directed by the Department of Agriculture and Cooperation, Ministry of Agriculture, Govt. of India, to support the State Governments in the incorporation of Farmer Producer Organizations (FPOs). The Proactive approach of central government which started in 2011-12 under the two Central Sector Schemes of Vegetable Initiative for Urban Clusters (VIUC) and Integrated Development of 60,000 Pulses Villages in Rainfed Areas has expanded in its scope and covers special FPO projects taken up by some State Governments under general Rashtriya Krishi Vikas Yojana (RKVY) funds as well as under the National Demonstration Project under the National Food Security Mission (NFSM) and Mission for Integrated Development of Horticulture (MIDH).
In many of the Central Sector Schemes like National Vegetable Initiative for Urban Clusters (VIUC), Mission for Integrated Development of Horticulture (MIDH) and National Food Security Mission (NFSM) in which funds are allocated to States, there is a provision for the promotion of Farmer Producer Organizations (FPOs)’. After Central allocations are made under these programs to the States in a particular financial year, States prepare the Annual Action Plans for approval by the State Level Sanctioning Committee (SLSC) chaired by the Chief Secretary. In doing so, many of the States provide for adequate outlay for the FPO promotion component also, amongst others. After approval of the Action Plan by the SLSC, many of the States approach SFAC and transfer requisite funds to it for implementation of the FPO promotion work.
In order to support the FPOs in terms of strengthening their capital base, SFAC has launched a new Central Sector Scheme “Equity Grant and Credit Guarantee Fund Scheme for Farmers Producer Companies” on 1st January 2014. The Scheme has two major components:
a) Equity Grant Scheme: A grant of up to Rs.10.00 lakh is provided to every registered Farmer Producer Company (which is registered under the special provision of the Companies Act) to match the member equity raised by the institution. This will enhance the equity base of the FPC and enable it to approach financial institutions for raising working capital.
b) Credit Guarantee Fund (CGF): The CGF will offer a cover of 85% to loans extended by banks to Farmers Producer Companies without collateral, up to a maximum of Rs.1.00 crore.
Filingpool will help you to register Former Producer Company (FPO)