Producer Company is a type of company which holds the main objective of production, harvesting, grading, procurement, handling, pooling, selling, marketing, exporting the primary produce of the company Members or import of services or goods for the members benefit. This type of company is registered under the Companies Act, 2013 in India. Produce are the products or things or any matter which have been produced or cultivated or grown, mainly by farming. So, it is clear that a Producer Company is a company that works mainly with agriculture and crops processing activities.
The main concept of the producer company is to empower the farmers by gathering clusters of farmers in an organised manner as a Producer Company. In India, more than 85% of the farmers are small and marginal farmers with less than 2 hectares of land with them. As these farmers with small farmlands are fragmented and that leads to disorganization and it is not executable for these type of small farmers to make use of the latest farming technologies. The producer company organizes all these farmers together, to unlock the economies of scale and to improve the livelihood of farmers.
Overview of Producer Company
The Companies Act specifies ‘Producer’ in the Producer Company is any person who engaged in the activities that connect with or associate to any primary produce. Produce are the things that have been grown or cultivated through farming.
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Activities of a Producer Company
The Producer Company primarily deals with the produce of its company members and also help or assist them to carry on any of the following activities by themselves or through other institutions on the interest of the members.
- The main activities of a Producer Company are production, procurance, harvesting, sharing, grading, marketing, dealing, selling and exporting the primary produce of the members of the Producer Company.
- Processing is the produce that includes drying, brewing, preserving, giving vent, canning, purifying, sublimating and packing of the produce.
- Manufacturing, supplying or selling of machineries, equipment or commodity consumables to their members;
- Providing the knowledge to its members on the mutual assistance principles.
- Delivering consultancy services, technical services, providing training and other related activities to promote the interests of its members on farming and farming related techniques.
- Providing the insurance of primary produce and to the producers.
- Guiding in transmission, generation and distribution of power, the resurgence of land and water resources, preservation and communication that associate to primary produce.
- The Board can decide and suggest all relatable welfare measures or facilities to the Members for their benefits.
- Helping the members by financing of procurance, processing, marketing or other activities such as extending credit facilities or any other financial related services to its Members.
Registration of Producer Company
To register a Producer Company, the following combinations are necessary.
- Ten or more farmers, each of them should have a piece of land of their own or a producer or
- Two or more producer institutions are necessary or
- A combination of both farmers and producer institution are also eligible (ten or more people and producer institutions)
Procedure for Registering Producer Company
- Any ten or more individuals being a producer or two or more producer organisation, or a combination of the individuals and a producer institute can apply and incorporate as an Indian Producer Company.
- To register a producer company, the applicant has to fill the application in FORM-1A with a payable fee amount of Rs.1000. The registration process has to be done in the Registrar of Companies of that particular state where the company office is aimed to be located.
- Choose a name that is available to register and also it should define the purpose of your producer company in the best way. After getting the confirmation of availability of the name from ROC, prepare a detailed version of MoA and AoA of the producer company considering all the rules of Sec. 581F and 581G respectively.
- After drafting MoA and AoA of the company, get stamped from the appropriate authority in accordance with the rules of the Indian Stamp Act, 1899 either manually or electronically.
- And these documents should have the signature of each and every producer and the date can be the same stamping date.
- The MoA must be drafted in such a way that it should define one or more of the matters which are specified in Sec. 581B.
- The AoA of the company must mention the details of the appointment of the first directors of the producer company who manages the office till other directors are appointed and it should be done within a period of 3 months or 90 days after the registration. The Producer Company should have a minimum of 5 directors and a maximum of 15.
To complete the registration process of Producer Company, you have to be ready with the following documents.
- Duly signed AoA and MoA, it should be dated and stamped.
- Power of Attorney
- Statutory declaration in the e-Form- 1. It must the details of declaring compliance of all and consequent matters involving the formation of companies.
- If you are applying electronically, the payment can be done through the MCA portal. If not then the originally stamped hard copies of the uploaded e-Form-1, MoA, AoA with a copy of the challan in the respective office of ROC has to be presented.
- Filling of Form-18 has to be done
- Filling of Form-32 has to be done
- And finally the Registration Fees
Certificate of Incorporation
The registrar after verification provides an incorporation certificate along with CIN(a 21 digit number). The following documents are required for Company incorporation in India.
Documents required are,
- Copy of PAN Card of all the directors, it is mandatory for all directors of the company who are Indian Nationals to submit PAN card during the registration process.
- Passport size photos of all the directors
- Address proof of all the Directors
- Copy of the identity card. It can be their voter ID card or Aadhaar Card
- If the office premise is rented property, then a copy of the Rent agreement is required. If it is own property, then Copy of the Property papers has to be submitted
- Water and Electricity bill of the Business Place
- NOC letter from the Landlord