Producer Company

A Producer Company consists of a group of people who are involved in the production of primary produce or having one or more objectives related to the primary produce. 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.

Producer is everyone who carries out activities closely related to primary producers. Thus, manufacturing enterprise is an umbrella term that includes all of the following:

  • Procurement
  • Production
  • Harvesting
  • Grading
  • Pooling
  • Handling
  • Marketing
  • Selling, or
  • Export

The manufacturer is mainly engaged in the production of its active members. Permission is granted to perform any of the following activities alone or through other organizations on behalf of members.

Processing includes canning, drying, refining, boiling, boiling, canning and packaging of member products.
Manufactures, sells or supplies machinery, equipment or consumables primarily to its members
Provide training on the principle of mutual support for its members and others
Provide technical services, consulting services, training, research and development, and other activities to advance the interests of its members.
* Activities to promote the interests of its members
* Generation, transmission and distribution of energy, revitalization of land and water resources, conservation use and communication related to primary production.
* Insurance of the manufacturer or their main product
* Promotion of reciprocal techniques and mutual support
* Welfare measures or institutions that support members, as decided by the board
* Any other activity, complementary or identical to one of the actions, that promotes the principles of mutual support between members in different ways
* Financing the provision, processing, marketing or other activities involving the provision of credit facilities or other financial services to its members.

Production, harvesting, shipping, classification, aggregation, processing, marketing, sales, export of the member’s main producers or import of goods or services.
Producer companies aim to enable all small and marginal farmers to open their economies and they too can choose the latest and new technologies to live a better and better life.
Producer societies can be defined as farmer organizations that are legally recognized to improve living standards and ensure a good status of available support, income and profitability. Under the Companies Act 1956, a manufacturing company may be established by 10 (or more) persons or 2 (or more) institutions or a combination of both (10 persons and 2 institutions) whose business objectives are one of the following:

members’ primary production or import of goods or services for their benefit.

The main purpose of a manufacturing company is to facilitate the establishment of a cooperative as a company and enable the conversion of an existing cooperative into a company.

Registration of Producer Company

For incorporation of a producer company in India, there are needed a minimum of Five Directors and Ten Shareholders/Members; there is no limit kept for the maximum permissible number of members.

The following processes are involved in the procedure for its incorporation:

. Name Approval and Reservation (Form INC-1)
∙ Making DSCs and DINs for Directors
∙ Filing the Incorporation Form INC-7 with the relevant ROC
∙ Filing Forms like INC-22, DIR-12, etc.
∙ And, Submission of other necessary documents.

Documents Required

  • Copy of PAN Card of all the directors
  • Passport size photographs of the directors
  • Copy of the voter identity card/Aadhaar Card
  • Copy of the Rent agreement(If it is a rented property)
  • Water/Electricity bill (Business Place)
  • Copy of the Property papers (If owned property)
  • Landlord NOC

Filing of Documents

  • AOA and MOA duly signed, dated and stamped.
  • Power of Attorney
  • Statutory declaration in the e-Form- 1(on Stamp paper) declaring compliance of all and incidental matters regarding the formation of companies.
  • Ppayment of stamp duty electronically through the MCA portal. In case it is not paid electronically, then original stamped physical copies of the uploaded e-Form-1, AOA, MOA along with a copy of the challan in the concerned office of ROC has to be submitted.
    • Filling of Form-18
    • Filling of Form-32
    • Registration Fees

FAQS

QUESTION: 1, How to Register a Producer Company in India?

Activities of a Producer Company. Production, procurement, harvesting, pooling, grading, marketing, handling, selling and export of the primary produce of members.

∙ Procedure for Incorporation.
∙ Filing of Documents.
∙ Certificate of Incorporation.
∙ Documents Required.

QUESTION: 2, Can producer company accept deposits?

Producer companies are registered and monitored by the Central Government. … Acceptance of deposits – A producer company can accept deposit in the form of RD/FD, and give maturity as well as distribute loans to its farmer/agriculturist members, and charge reasonable interest from them.

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