Producer Company is a separate kind of legal organization under the cooperative societies in India. The main purpose of the Producer Company is to assist farmers in agricultural production, acquirement, storing, packaging, selling and distribution and give them benefits.
How Does Producer Company came to the Existence?
In India, most of the farmers live in underprivileged condition. They don't have access to the modern technologies, resources and financial assistance. Natural calamities and crop failure scenario make it worse for them to survive. Many of them have resorted to take their own lives.
To address this particular issue of the farmers, the Indian Government had assembled an expert committee led by the prominent economist Y. K. Alagh. They proposed the concept of the Producer Company in 2002. Henceforth, it came into existence.
How Producers Company Works?
Producer Company can be formed by a minimum of 10 people or 2 establishments. The combinations of both also work as well. It is a legally identified as farmers entity with the desire to revamp personal and professional lives of farmers in the rural areas.
The Primary Objectives of Producer Company
The main purpose of the Producer Company is to perform the below mentioned subjects.
- Acquisition
- Preparation and Production
- Accumulation
- Classifying
- Amalgamate
- Supervision
- Retailing
- Trading
- Export
All these purposes are related to the farming and cultivation. Now company registration online services available at cost-effective fees. We can discuss the purpose of the Producer Companies in details.
- Creation, gathering, obtainment, reviewing, pooling, dealing with, showcasing, selling, fare of essential creation of the Members or import of merchandise and administrations for the benefits of farmers.
- Preparing and protecting, drying, refining, fermenting, minting, canning, and bundling of the crops, produced by the Members.
- Assembling, deal or supply of farming equipment, seeds or consumables for the most part to its Members.
- Giving instruction on the shared help standards, to its members and others.
- Delivering specialized services, consultancy administrations, preparing, innovative work and any remaining exercises for the betterment of its Members.
- Age, transmission, and dissemination of force, rejuvenation of land and water assets, their utilization, preservation and correspondence relatable to essential produce.
- Protection and storage of essential products.
- Promoting habits of mutual cooperation among the members.
Producer Company Registration Requirements
- Minimum 10 people or 2 institutions must come together to create a Producer Company. Their combination will also works.
- The Minimum capital must be ₹5 lakhs.
- The minimum numbers of directors is 5. The upper limit is 15 at most.
Please note that the Producer Company cannot be transformed into a public company.
Registration Process of Producer Company
The producer company registration process is similar to private limited company. The below mentioned steps should be taken.
- Apply for the Digital Signature Certificate (DSC) and Directors Identification Number (DIN), at first.
- Name reservation application need to send to the Registrar of Companies (ROC). The name of the company must be concluded with the word "Producer Limited Company."
After both of these processes are done, now you must file the application for the incorporation process of your producer company. You need to submit the below mentioned documents along with the incorporation application.
- Members and Directors Identity and address proof.
Copy of Aadhar Card, PAN Card, Voter ID, Driving License, and Passport would work as identity proof.
Copy of recent bank statement (with address), Electricity Bill, Telephone bill, Gas connection bill would be sufficient as address proof.
- DSC and DIN
- The Producer Company's Articles of Association (AOA) and Memorandum of Association (MOA).
- Company's office address proof (if the company is on rented ground, then rent agreement/rent receipt and NOC is must)
- Directors consent form DIR-2 and DIR-8.
- INC-7, INC-22 and DIR-12.
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