Producer Company Registration
In 10 days.
From Anywhere.At a Single Click
- DSC of 2 Partners
- Name Reservation
- Partnership Deed Drafting
- TLLP Identification Number
- PAN & TAN
- Bank Account Opening template
Producer Company is a company registered under the Companies Act, 2013, which has the objective of production, harvesting, procurement, grading, pooling, handling, marketing, selling, 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.
The economy of India is an agricultural centric economy. Around 60% of population depends on agricultural activities for their livelihood. But, the primary producers and farmers have had a long struggle in India. In order to address these problems, the Government of India set up an expert committee, led by Y.K. Alagh (an economist) to look into the matter. In the year 2002, they introduced the Producer companies concept to the Indian economy. Since then, they have helped primary producers gain access to input, credit, production technology, market etc.A producer company can be defined as a legally recognized body of farmers/ agriculturists with the aim to improve the standard of their living, and ensure a good status of their available support, incomes and profitability.
India is an agriculture-based country with around 62% of its people depending directly or indirectly upon agriculture. Indian farmers are completely unorganized and they are not able to use the latest technologies in the agricultural sector production. Due to this, farmers account for 12% of all suicides in India. An expert committee has been set up by the government to look in this matter. A Producer Company is a company registered with the object of agriculture production, post-harvesting processing activities, procurement, selling and distribution, export of primary production of the members or import of goods for their benefit. In India, Producer Company can be set up by the 10 or more individuals or by the combination of 10 or more individuals and 2 institutions. The main object of the Producer Company is to deal with agricultural activities and post-harvest processing activities.
- Step 1:Obtain DSC (Digital Signature Certificate)
The process of registering a Producer Company is similar to that of a Private Limited Company.
- Step 2:Obtain DIN (Director Identification Number)
The next step is to obtain DIN (Director Identification Number) by all the proposed directors in a company. Now DIN can be obtained directly through SPICE Form and there is no need to file a separate form.
- Step 3:Name Approval Application
For registering the Producer Company name, an application is filed with the prescribed fee in RUN (Reserve Unique Name) form with the registrar of companies. On application, ROC verifies the name availability. After the approval of the Producer Company name, an incorporation application is filed within the period of 20 days.
- Step 4:Incorporation Application
After obtaining name approval, an incorporation application is filed in SPICE form along with the necessary documents such as MOA, AOA, affidavit, and declaration with the concerned Registrar of Companies. After verification of the incorporation form, Certificate of Incorporation is issued by the ROC and it takes around 7 days.
Producer Company is formed by the number of individuals who are primary producers and in need of timely financial assistance. Therefore, a special provision was passed as per companies act for loan sanctioning to the members of the producer company.
- Credit facility
- Loans and advances
- NABARD (National Bank for Agriculture & Rural Development) Loan
The credit facility will be available to a member of the producer company for a period of not more than 6 months.
Loan and advances will be issued to the members against security for a period of not more than 7 years from the date of loan disbursement.
To meet the requirement of the Producer Company, financial assistance is provided by the NABARD (National Bank for Agriculture & Rural Development). In the year 2011, Producer Organization Development Fund (PODF) of Rs. 50 Crore has been set up by the NABARD out of the NABARD operating surplus.