PRODUCER COMPANY

Producer Company is a company registered under the Companies Act, 2013, which has the objective of production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary produce of the Members or import of goods or services for their benefit. Produce are things that have been produced or grown, especially by farming. Therefore, a Producer Company deals primarily with agriculture and post-harvest processing activities.

Over 85% of the Farmers in India are small and marginal farmers with land holdings of less than 2 hectares. This fragmentation in farmers and farm lands, leads to disorganization and it is not viable for Indian farmers to adopt the latest technologies. By organization of these farmers into producer companies, economies of scale can be unlocked and the livelihood of farmers can be improved. Thus the concept of Producer Company is aimed at empowering farmers by creating clusters of farmers organized as a Producer Company.

Why Producer Company?

To offer a statutory and regulatory framework that creates the potential for producer-owned enterprises to compete with other enterprises on a competitive footing. To provide for the method of formation and registration of “Producer Companies” which, inter carries the principles of “mutual assistance” and “Co-operation” within the more liberal regulatory framework afforded by the company law with suitable adaptation. To provide an opportunity (on a purely voluntary basis), to the existing large multi-state cooperative institutions and societies, to voluntarily convert themselves into the new form of producer companies.

Requirements

i. Minimum 5 directors are mandatory to run a producer company. All directors must possess DIN and DSC.

ii. Minimum paid-up authorised capital to incorporate Producer Company is of Rs. 5 lakh.

TO INCORPORATE THE PRODUCER COMPANY ONE NEEDS TO DO:

  • Choose a name
  • Have a Company address
  • Appoint minimum of 10 members out of which appointment of five directors is mandatory.
  • Register Producer Company with MCA.

For Registered Office Address One needs:-

If, Owned Premises: Any latest utility bill i.e. Electricity bill/water bill/mobile bill in the name of the owner which should not be older than two months + NOC from the owner.

If, Rented Premises: Any latest utility bill i.e. Electricity bill/water bill/mobile bill in the name of the owner which should not be older than two months + NOC from the owner + Rent agreement/Rent receipt.

Applicant

Any of the following combination of producers can incorporate a producer company:

  • Ten or more producers (individuals)
  • Two or more producer institutions
  • Combination of the above two

PRODUCER COMPANY REGISTRATION PROCESS :

  1. Obtaining DSC & DIN
  2. Name Approval & License
  3. Producer Company Registration

ADVANTAGES OF PRODUCER COMPANY REGISTRATION :

  1. Separate Legal Entity
  2. Uninterrupted Existence
  3. Better Credibility
  4. Easy Management
  5. Owning Property
  6. Limited Liability

DOCUMENTS REQUIRED FOR PRODUCER COMPANY REGISTRATION :

For Promoters & Directors

  1. PAN Card
  2. Photograph
  3. Aadhaar Card/ Voter identity card
  4. Rent agreement (If rented property)
  5. Electricity/ Water bill (Business Place)
  6. Property papers (If owned property)
  7. Landlord NOC (Format will be provided)