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,
A Producer Company is formed by 10 or more individuals or two or more institutions dealing in agricultural produces or post-harvest processing activities. Thus, a producer company is a legally recognized cluster of agriculturists/farmers which aims to improve their incomes, statuses of their available support and profitability, and the standard of their living.production technology, market etc.
- A producer company enjoys a separate legal entity, and offers the facilities of limited liability and perpetuity.
- Producer companies offer greater credibility as compared to that offered by unregistered organizations of agriculturists/farmers.
- Changes in the Board of Management of a producer company can swiftly be made just through filing few simple forms with the ROC concerned.
- Only a duly registered producer company is entitled to sell or own a property in its own name.
- A registered producer company is fully entitled to accept deposits from or give loans to its agriculturist members, at reasonable rates of interest.
Producer Company aimed at empowering farmers by creating a registered body of farmers as Producer Company and this will help them to use the latest technology and reduce the cost of agriculture harvesting.
Farmer Producer Company can be set up with any of the following below mentioned object:
- Production of the primary produce
- Procurement of the primary produce
- Harvesting and Grading of the primary produce
- Poling and Handling of the primary produce
- Marketing of agricultural primary produce
- Selling or export/import activities in relation to agricultural produce
To register a Producer Company in India, the following members in any of the combination is necessary:
- Ten or more individuals, each of them being a producer; or
- Two or more producer institutions; or
- A combination of ten or more individuals and producer institutions
The registration process for a Producer Company is then similar to that of a Private Limited Company. DSC and name approval must first be obtained. The name of a producer company must end with the words “Producer Limited Company”. Once, name approval is obtained from the MCA, application for incorporation can be filed in the prescribed format for incorporating the Producer Company.
If the Registrar is satisfied with the application for incorporation of Producer Company, then he/she will approve the same and issue Certificate of Incorporation. Once, a producer company is incorporated, it shall function similar to a private limited company subject to certain provisions. However, unlike a Private Limited Company, a Producer Company does not have a limit on the number of members. Further, though the name of a Producer Company ends with the words “Producer Limited Company”, it shall under no circumstance become or be deemed to become a public limited company.
PAN Card/ Passport/ Election ID Card of all the directors and shareholder
Latest Bank Statement Voter’s ID/Driver’s License/passport of all the directors and shareholders
Passport-sized photographs of all directors and shareholder
Copy of any Utility bill as a residential proof
In case of rented property a scan copy of Rent agreement along with NOC from the owner
In case of owned Property, a copy of Property Paper