With 62% of people dependent upon agriculture, India is no doubt an agriculture-based country. But still, farmers in India are unorganized and deprived of the latest technologies and techniques in...
Before you bump into the process of obtaining Producer Company Registration in India, let’s first understand the notion of introducing Producer Company.
Approximately 62% of people in India depend upon agriculture; either directly or indirectly. However, the condition of farmers in India is quite poor due to the unorganized agricultural method and the lack of the latest technologies.
Therefore, the government has set up an expert committee to look into this matter seriously. As a result, the Farmer Producer Company came into existence to help farmers utilize the latest technologies and increase theirs produces.
With Producer Company Registration in India, one can operate the Farmer Producer Company without any legal complication. Furthermore, farmers will be organized, and their livelihood will also improve.
Hence, if you have a keen interest in agriculture but want to start a company of your own for better revenue, then the producer company would be the best option. But before you start your new venture, you must obtain permission from the concerned authority.
Producer Company Registration in India: An Overview
Producer Company Registration is a mandatory permit required for running a farmer producer company in India. Such companies are registered with the Ministry of Corporate Affairs (MCAs) and regulated under the Companies Act, 2013.
Generally, a producer company is the one which comprises a group of people who are engaged in the production of primary produce or have several objectives associated with the primary produce. In a nutshell, a Producer Company deals with agriculture and activities related to post-harvest processing.
Hence, the main idea behind creating a Producer Company is to empower farmers by creating a cluster off organized farmers.
Primary Objectives of a Farmer Producer Company
The main intent of a Producer Company is to reduce the agriculture harvesting cost and provide the farmers with access to technology.
Besides, such companies must be set up with the following objectives:
- Production of the Primary Produce
- Marketing and Promotion of the Primary Produce
- Handling and Poling of the Agricultural Produce
- Procurement of the Primary Produce
- Grading and Harvesting of the Produce
- Import or Export or Selling Activities associated with the agricultural produce
Basic Requirements for starting Producer Company in India
Anybody who is desirous of starting a Farmer Producer Company in India must meet the basic requirements as follows:
- The company must have ten or more producers in the organizations;
- Two or more producer institution together can form a producer company, or;
- Combination of both the aforesaid requirements.
Eligibility Criteria for obtaining Producer Company Registration in India
To obtain the producer company registration in India, you must satisfy the following eligibility criteria:
- There needs to be a minimum of five directors and ten members;
- The company must hold the minimum paid-up capital of Rs. 5 lakh;
- A Producer Company can possess only equity share capital;
- Producer Company can never be deemed as a public company, however later on one can convert it into a multi-state co-operative society ;
Documents required for Producer Company Registration
For obtaining Producer Company Registration in India, the applicant needs to submit the required documents. They are as follows:
- PAN card as an Identity proof of the directors or members of the company;
- Address proof such as Aadhaar Card or Passport or Election ID card;
- Passport-sized photograph of all the shareholders and directors;
- Copy of the latest utility bills such as Electricity bill or Water bill or Telephone bill;
- Copy of Rent Agreement along with the NOC from the owner;
- Copy of proper papers in case the property is owned by the applicant;
- Other documents as requested by the authority.
Steps for Producer Company Registration in India
The process of registering a producer company is pretty similar to that of the private limited company incorporation.
For producer company registration, the applicant needs to make an application with the RoC (Registrar of Companies) in the prescribed format along with the required documents.
The ROC will further investigate and issue the certificate of incorporation depending on the reliability of the application.
The detailed procedure of the same is described below:
Step 1: Apply for Digital Signature Certificate (DSC)
Digital Signature Certificate is the foremost requirement for every kind of company registration in India. The applicant can obtain it by filing an application for the same with the concerned authority. Later on, the directors can use the DSC to file several other applications.
Step 2: Apply for Company Name Approval through RUN
RUN stands for Reserve Unique Name service which is used by the companies for name approval. One can suggest a maximum of two company names.
Firstly, the RoC will check for the availability of the proposed name. Depending upon the value it adds to the company and its uniqueness, the RoC will approve the company’s name.
Moreover, the approved name stands valid for 20 days in case of a new company. However, for the existing company, it is valid for sixty days. Within the required time frame, the applicant company has to file the SPICe form.
Step 3: Filing of SPICe or INC 32 for company incorporation
SPICe is a company incorporation form and stands for Simplified Proforma for Incorporating Company Electronically. It’s a single form used for obtaining the company name approval, DIN, company’s incorporation, PAN & TAN, CIN, etc.
The applicant is required to file SPICe along with above-described documents plus including those listed below:
- INC-9 Affidavit
- DIR-2 declaration from first Directors along with Copy of Identity Proof and residential address;
- Max 3 directors can apply for DIN through Spice [After incorporation, for fresh director DIN can be obtained by filing form DIR 3];
- SPICE MOA (Memorandum of Association);
- SPICE AOA (Articles of Association);
- INC 35 AGILE [GSTIN, EPFO, ESIC].
Step 4: Grant of Certificate of Producer Company Registration
Once you have submitted the application, the RoC will verify it. If he finds the application and documents complete and reliable, he will issue the certification of company registration.
Once you have received the certificate of the company’s incorporation, you need to open a bank account in the name of the company. Further, you can start the operation.