How to form Farmer Producer Company?

The main goal of Producer Company is to improve the standard of living of agriculturists and farmers. Producer Company is established under the Companies Act 1956, and the Indian agricultural industry is the backbone of the Indian Economy. Around 62% of people are depending indirectly or In India, farmers have low production and inadequate facilities, which makes their life miserable. So, Producer Company Registration empowering all the small scale farmers so they could also opt for the latest and new technologies to lead a better experience. Scroll down to check more information regarding Farmer Producer Company Registration in India.

Primary Object of Farmer Producer Company

The Following Are The Primary Object Of Producer Company That Can Be Set Up With Any Of The Following Objects. 

• Production And Procurement Of The Primary Producers. 

• Harvesting And Grading Of The Primary Producers. 

• Marketing Of Primary Agricultural Produce. 

• Polling Of The Producers Primary. 

• Handling Of The Primary Producers. 

• Import / Export Or Selling Activities In Agricultural Produce. 

Benefits of Farmer Producer Company Registration

Following are the lists of benefits of Producer Company Registration:

• More Credibility: Producer Company offered more credibility to the registered companies as compare to no-registered companies.

• Ease in Management: An applicant can make changes in the management by filling some form regarding the ROC (Registrar of Companies).

• Separate Legal Entity: A registered producer company is also considered as a separate legal entity that can sell or purchase land on its name.

• Limited Liability: The members have minimal liabilities, and their assets cannot cover up the company's losses.

Checklist for the Farmer Producer Company Registration

Below is the checklist for the Producer Company Registration:
• Ten or more individuals can join to form a production company.
• Two or more institutions can form a producer company.
• Minimum 5 directors and a maximum of 15 are required in a producer company.
• Rs. 5 Lakh of minimum capital is required to form a producer company.
• Also, a producer company cannot be deemed as a public company.
• The name of the company must contain “Producer Company Limited” at the end of their name.
• The company must conduct 4 meetings in a year (after every three months).
• The company cannot be considered or registered as a Public Limited Company.

What are the documents required for the Farmer Producer Company Registration?

Following are some essential documents required for the Producer Company Registration:

 Necessary documents to be submitted by Directors and Shareholders:

• Submit a scanned copy of PAN card or Passport (In case of NRIs) and Foreign Nationals). 

• Submit a copy of Aadhaar card, Voter Id, Driving License, etc.

• For address, proof submits a copy of the latest electricity bill / telephone bill / water bill / bank statement, etc.

• Submit the latest passport size photographs.

• Specimen signature of directors only.

 Documents for the Registered Office:

• Latest electricity bill / mobile or telephone bill / bank statement, etc.
• Submit a scanned copy of the Notarized Rental Agreement.
• NOC (No Objection Certificate) from the property owner.
• Copy of Property Deed or Sale Deed (in case of) ) Owned property).

What is the process of Producer Company Registration?

Following is the step by step procedure of Producer Company Registration in India:

Step 1: Search for Company's Name:
For registering the Producer Company name, you have to apply along with the prescribed fee in the SPICe + Form. After the approval, an incorporation application is filed within 20 days of the period.
Step 2: Obtained a DSC (Digital Signature Certificate):
You have to obtain DSC (Digital Signature Certificate) for all the proposed directors in a company. The whole process of producer company registration is digital; that's why DSC must sign the documents digitally.
Step 3: Obtain Director Identification Number (DIN):
After the first step, you have to obtain the Director Identification Number by all the company directors. You can get DIN directly through the SPICe + Form, and there is no need to file a separate form.
Step 4: Preparation of MOA and AOA:
After the name approval, you must start the incorporation process by obtaining the below documents:
• Draft Memorandum of Association as per the objectives of the company.
• Draft Article of Association as per the laws of the Company.
• Draft A Declaration By A Professional.
• An Affidavit Signed By All The Subscribers.
• Obtain Electricity Bill, Water Bill, Gas Bill, And The NOC (No Objection Certificate) From The Owners. Also, Obtain A Rent Agreement In Case of a rented property.
Step 5: Incorporation Application:
Attach all the drafted documents along with the SPICe + form with the relative registrar of companies. After verifying all the documents by the higher authorities, they will issue the incorporation certificate to the company. Usually, it takes around 7-15 days for the verification of documents. 

Conclusion

With the help of registered producer companies, the farmers gain access to input, the latest production technologies, credit, market, etc. After introducing the Farmer Producer Company Registration, those farmers who face many struggles for their survival have experienced a sign of relief.