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Producer Company

Take the First Step towards Collective Growth – Register Your Producer Company.

    Are you an Indian farmer looking to enhance your agricultural activities and unlock the benefits of collective efforts? Producer Company registration is the solution you’ve been searching for. Specifically designed for primary producers like farmers, this specialized business model empowers you to thrive in the agricultural sector.

    Take the first step towards transforming your agricultural journey.

    Producer Company Registration

    Empowering Primary Producers through Producer Companies

    Producer Company registration provides Indian farmers with a business structure that enables them to collectively improve their agricultural activities. By understanding the objectives, features, benefits, eligibility criteria, and registration process, farmers can take advantage of this specialized business model and access various government schemes and financial assistance to enhance their farming practices and overall livelihoods.

    Producer Company registration is a specialized business model designed to empower primary producers, such as farmers, in India.

    Objectives of a Producer Company

    The establishment of a producer company in India can serve various objectives, including:

    A Producer Company is established to facilitate various activities related to primary produce and the welfare of its members. These activities can include production, procurement, harvesting, marketing, processing, manufacturing, supply of machinery and equipment, education on mutual assistance principles, technical services, power generation, insurance, welfare measures, financing, and more.

    Features of a Producer Company

    Producer companies in India possess several unique features, which are as follows:
    1. Producer companies are private limited companies, allowing more than 50 members.
    2. A minimum of 10 individuals or a combination of individuals and producer companies is required to form a Producer Company.
    3. The name of a Producer Company must end with “Producer Company Limited.”
    4. The minimum paid-up capital must be Rs. 5 lakh.
    5. Voting rights follow the principle of “one man-one vote,” regardless of shareholding.

    Benefits of a Producer Company

    Producer companies offer various benefits, including:

    Producer companies enjoy several advantages, such as access to government schemes, equity grants, credit guarantee funds, and benefits for members. These benefits include receiving value for their produce, bonus shares, and patronage bonuses based on participation.

    Eligibility Criteria for Producer Company Registration

    To register a producer company in India, certain eligibility criteria must be met:
    1. A minimum of five directors and ten members are necessary.
    2. Two or more institutions can form a Producer Company, along with individuals.
    3. The minimum paid-up capital required is Rs. 5 lakh.
    4. A Producer Company cannot be converted into a public limited company.

    Documents Required for Producer Company Registration

    To complete the registration process, the following documents must be submitted:
    1. Self-attested PAN card copy
    2. One (Color) Photograph
    3. Self-attested copy of an identity proof
    4. Self-attested copy of an address proof
    5. Company address proof (electricity bill, telephone bill, etc.)
    6. Rent agreement and NOC (if applicable)

    Registration Process for Producer Company

    The registration process for a producer company in India involves the following steps:
    1. Choose a unique name and reserve it through the RUN application on the MCA web portal.
    2. Obtain the DSC (Digital Signature Certificate) and DIN (Director Identification Number) for the directors.
    3. Draft the Memorandum of Association (MOA) and Articles of Association (AOA).
    4. Submit the online application for incorporation.
    5. The Ministry of Corporate Affairs assesses the application.
    6. Upon approval, complete the investment from general reserves.

    It is important to note that after the registration, a producer company must comply with various legal and regulatory requirements, such as maintaining proper books of accounts, conducting annual general meetings, and filing annual returns with the ROC.