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What is a Producer Company?

The producer company is the company, which is formed officially with a motive to promote the standards of farmers and agriculturist, and it is known as Producer Company.  Thistype of company is formed under Companies Act 1956. According to that act, the registration of Producer Company with a minimum of 10 individuals or more or with two institutions or more or combining 10 individuals or two institutions.  The primary aim of this business should be:

·         Production.

·         Procurement.

·         Harvesting.

·         Marketing.

·         Grading.

BENEFITS OF REGISTRATION OF PRODUCER COMPANY IN OUR COUNTRY

A company while registering online in India gets all the advantages of a Private Limited Company.

Limited Liability

The losses and debt of the company are not allowed to cover up the personal assets of the members of the Producer Company. Theliabilities of the Producer Company members are limited.

Separate Legal Entity

They are considered as a separate legal entity as registered as a Producer Company same like Private Limited Company and they can buy or sell land on their name.

More Credibility

Incomparison with the registered producer companies and non-registered producer company, it is given more credibility.

Easy Management

A member of Producer Company can make a change in the board of management and can give filled up simple forms and submit to the Registrar of Companies (ROC).

This is a great gift to the farmers in India who are the primary producers and hence it results in much more profits to the farmers for their products.  Theseare the benefits for farmer producer registration of the company and makes it more advantageous for the farmers and producers.

CHECKLIST FOR REGISTRATION OF PRODUCER COMPANY IN INDIA

·         Five directors in minimum and 10 members are required to incorporate the company.

·         Rs. 5 lakhs or more is the minimum paid up capital needed to register the company.

·         There is no limit in the members required to incorporate a Producer Company.

·         It cannot be registered as a public limited company.

·         Equity share capital can only be owned by the producer company.

·         They should perform 4 board meeting every year and it should happen every three months.

REQUIREMENTS FOR REGISTERING A PRODUCER COMPANY IN OUR COUNTRY

Additional compulsory requirements for the process of registration of producer organization in our country as,

·         Only one can participate in the ownership of the company and only one individual can be participating related with the process of primary produce and its production.

·         Everybody engaged should be primary producers.

·         The unpaid share amount and its liabilities of the members of the producer company formation are limited.

·         At the end of the company name, it should be Producer Company Limited as per the proposal.

It is actually seen as a Private Limited Company as per the provision of Companies Act as concerned proposed producer company.

AVAILABILITY OF EASY LOANS AND CREDITS AND ITS RULES AND REGULATIONS

The motive of a producer company is to enhance the lifestyle of the primary producers in our country is to reach the ambition of the government as proposed to a special proviso was passed and as per the rule, the loan should be given to the concerned farmer producer or the membersof the company through.

LOAN FROM NABARD

The farmer producer or the member can get loans through NABARD or National Bank for Agriculture and Rural Development through the NABARD scheme and they can get a loan for their financial requirements.

CREDIT FACILITIES

As per the rule, the farmer producer can be given credit facility for a period of 6 months or lesser than that.

ADVANCES AND LOAN FACILITY

From the date of outlay of loan, the farmer producer can be granted advances and loans against security for about 7 years or lesser.

The small and regional scale producer farmer to meet their financial requirements, the National Bank of Agriculture and Rural Development as for help and they get benefited by that.  They can get the loans, advances and credit through NABARD scheme.

The rule suggest that they can get the credit facilities meaning the producers or members of Producer Company can get credit for a period of 6 months or lesser.

ADVANCES, CREDIT AND LOANS

From the date of outlay of loans or 7 years against security according to the rule, the advances can be granted to the member of the producer company and loans can be sanctioned.

FARMER PRODUCER COMPANY AND THEIR ACTIVITIES FOR COMPANY REGISTRATION IN INDIA

Online registration takes care of all the production and harvesting activity and also more of the post activities of the farmers.

Crops and its farm products like processing, brewing, drying, preserving, venting, distilling, canning, and packaging are the procedure that the farmer producer starts hisactivities.

CROP AND FARMS PRODUCTS MANUFACTURING

The high tech machines and equipments that are necessary for the sales and supply for large scale productions of crops and farm products manufacturing includes the famer producer to expand the new technologies that are introduced and the small scale farmers are educated how to use these equipments, so the guidance is provided at the right time to the small scale farmers to grow the crops and increase the harvest.

The mutual assistance principles are introduced and the farmers are encouraged to use them and the members of the farmer producer company are motivated to use them.

As per the interest of the famer member producer, the technical consultancy and training is provided and other activities to promote their harvest.

Primary production and producer insurance is provided.

Distribution and transit of power, maximum use of water and land resources to render a point.

For mutuality and mutual assistance, the producer company is promoted for farming techniques.

Assistance in terms of financial guidance to the member of the producer company for marketing procurements and other functions.

Floriculture, horticulture, animal husbandry, re-vegetation, viticulture, pisciculture, bee raising,  forest products, forestry, and farming products according to the Companies Act 1956, all these primary production,these are accrued as a product arising from the land of the member producer.

·         Handling.

·         Pooling.

·         Selling.

·         Export

PROCEDURE FOR REGISTRATION OF FARMER PRODUCER COMPANY IN INDIA

As per the rules and regulations, the registration of the farmer producer company is as similar to the registration of private limited company.

·         The directors can apply for getting the DSC or Digital Signature Certificate and DIN or Director Identification Number

·         Verifying the availability of the name and to apply for it as per rule.

·         Filing the EMOA and EAOA and drafting the MOA and AOA and other required documents.

·         application for TAN and PAN for the farmer producer company.

·         Incorporation Certificate will be obtained from ROC with PAN and TAN.

·         A current account should be opened in a government authorized bank.

·    The Incorporation Certificate will be issued if all the required documents are perfect and is according to the rules and regulations of the government.  it may take 7-15 working days for the verification of the documents as per the ROC.