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How Do I Register A Producer Company?
A Producer Company is a type of company registered under the Companies Act, 2013. It is a business entity formed by a group of farmers to carry out activities related to production, procurement, and marketing of agricultural produce. If you’re looking to start an FPC in India, you’ll need to go through the registration process. This can be a complex and time-consuming task, involving a lot of paperwork and legal formalities. Fortunately, our team of experts can guide you through the process and help you get started with ease. With our assistance, you can ensure that your FPC is registered quickly and efficiently, so you can focus on growing your business and serving your community.
A producer company is a specialized type of entity primarily engaged in agriculture and post harvest processing activities. It is usually registered by a group of farmers for the benefit of its members.
It is ideal for those who are engaged mainly in agricultural production, including animal husbandry, horticulture, floriculture, pisciculture, viticulture, forestry, forest products, re-vegetation, beekeeping, and farming plantation products. A producer company may carry out processing, including preserving, drying, distilling, brewing, vinting, canning, and packaging, harvesting, procurement, grading, pooling, handling, marketing, selling, or export and import activity.
The concept of a producer company is aimed at empowering farmers and improving their standard of living. It helps primary producers gain access to input credit, government subsidies, production technology, markets, etc.
Once the producer company is formed, you will be eligible to get several government grants and subsidies. Upon registering a producer company, you may also participate in Farmer Producer Organization Scheme (SFAC) and National Agricultural Market (NAM).
The name of the company is identified as “Business Name Producer Company Limited.”
A Producer Company Is Registered In 4 Easy Steps.
Obtain the digital signature of directors | Obtain the DIN no. of directors | Company Name Approval | Incorporation Certificate |
What Are The Requirements For Producer Company Registration?
- Unique name: To register a producer company, you must have a unique name for the proposed producer company, you can check company name availability through our online company name search tools.
- Directors: The producer company must have at least 5 natural person directors’ appointments. age must be above 18 years and at least 1 director must be a resident of India.
- Share holders: A minimum of 10 individuals, each of them being a producer or any 2 or more producer entities, or a combination of ten or more individuals and producer Entities can form a producer company.
- Authorized capital: You must decide the authorized capital while incorporating a producer company. The authorized capital of a company is the maximum amount of share capital for which shares can be issued by a company to its shareholders. Since the minimum paid up capital requirement of the producer company is Rs. 5 lakh. Therefore, the authorized capital of the producer company must be above Rs. 5 lakh.
- Company objects: To start a company, you must define the nature of business, range of agricultural related activities that the company will carry out. Eg. (harvesting, procurement, production, grading, pooling, handling, marketing, selling, or export).
- Registered office: If you incorporate a producer company in India, the law requires that your company must have an official address where any communication relating to the company is sent. The registered office address will be stated on the incorporation certificate. This address will be publicly available on the Registrar of Companies (ROC) website. An office can be owned or rented and can be commercial or residential premises. You can use your residential address as your company’s registered office. A registered office address must be displayed on all company stationery and websites.
- Online process: The producer company registration process is an online process. You can just scan / photograph the self attested documents of directors, shareholders, and registered office from your mobile phone and share it with us in order to process the application for producer company registration.
Why Choose A Producer Company?
- Tax benefit: Income from agriculture is exempt from income tax, tax benefit and exemption to a producer company completely depends upon the type of activity it undertakes. Time to time The government grants special tax benefits to producer companies for the promotion of agriculture.
- Member’s benefits: The members of the producer company are entitled to get bonus shares proportionate to the shares held by them. The surplus may be given as a patronage bonus to the members of the producer company. Members also receive the value for the produce pooled and supplied as determined by the directors. This amount can be distributed in the form of cash/equity shares.
- Easy raising funds: Govt. has passed a special provision under the companies’ acts. for giving loans to producer members. NABARD also provides support and financial assistance to meet the needs of producer companies.
- Separate legal entity: Producer company is treated as an corporate entity; it can acquire, own assets in its name. The property owned by a company could be tangible.and intangible assets like trademarks, machinery, buildings, residential property, factories, etc. Shareholders cannot make a claim upon the assets of the company.
- Limited liability: Since a producer company is a separate legal entity from its members, the liability of the members for the company’s debts is limited. It provides the best protection for personal assets, as the founder, directors, and shareholders are usually not liable for the company’s liabilities and obligations.
- Uninterrupted existence: Once formed, a producer company has a lifetime existence. unless it is struck off by ROC or liquidated. Ownership can be transferred very easily, but the shares of the producer company cannot be transferred to non producers and if an existing member wishes to leave the producer company, then the shares can only be purchased either by existing producers or by inviting a new primary producer.
A producer company enjoys government subsidies, tax benefits, technology assistance, access to the market, etc.
What Documents Are Required For Producer Company Registration?
Director’s documents for producer company registration:
- Passport size photograph
- Copy of PAN card
- Copy of passport/ driving license/voter identity card
- Proof of residence (electricity bill/telephone bill, /mobile bill, / bank statement )
Documents required for the registered office:
- Latest electricity bill/ mobile bill/ telephone bill (business place)
- Copy of rent agreement (If rented property)
- Copy of property papers (if you own property).
- Landlord’s NOC (Format will be provided)
If shareholders and directors are different, then the following documents of shareholders are required:
If the shareholder is a natural person
- Copy of PAN Card
- Copy of passport/ driving License/ voter identity card
- Proof of residence of shareholders (electricity bill/telephone bill, /mobile bill, bank statement)
If the shareholder is a corporate body:
- Registration certificate
- Copy of PAN card
- All documents should be self-attested and be provided as a soft copy.
Documents Required For NBFC Company Registration:
FAQs - Producer Company Registration
A producer company is a type of corporate entity formed by producers, primarily farmers, artisans, or other primary producers, to collectively undertake activities related to production, procurement, processing, and marketing of their produce.
Any 10 or more primary producers, or any two or more producer institutions, or a combination of both, can form a producer company.
The main objectives of a producer company are to improve the income and livelihoods of its members by enhancing production, productivity, and value addition in agriculture and allied activities.
Forming a producer company provides several benefits, including access to better markets, improved bargaining power, enhanced access to credit and technology, reduced transaction costs, and increased income for members.
The registration process involves obtaining a Digital Signature Certificate (DSC) for directors, applying for Director Identification Number (DIN), obtaining name approval, preparing and filing incorporation documents with the Registrar of Companies (ROC), and obtaining the Certificate of Incorporation.
Mandatory requirements include having at least 10 members or two producer institutions as promoters, a registered office in India, a minimum paid-up capital of Rs. 5 lakh, and compliance with other provisions of the Companies Act, 2013.
Yes, a producer company can distribute profits among its members in proportion to their participation in the business activities of the company.
Yes, a producer company must have a board of directors consisting of at least five and not more than fifteen directors, with the majority being members or primary producers.
Producer companies must comply with various regulatory requirements such as holding annual general meetings, filing annual returns, maintaining statutory registers, and adhering to accounting and auditing standards.
More information about producer company registration can be obtained from the Ministry of Corporate Affairs (MCA) website or through professional consultancy services specializing in corporate registration and compliance.