INTRODUCTION: -

In the Companies Act 2013, a producer company is characterised as an organisation that is framed and enrolled under the Company Act, with the target of production, harvesting, grading, procurement, pooling, handling, marketing, selling, and commodity of essential produce of its individuals or import of goods and services for their advantage. The essential produce incorporates the results of farmers or agriculture, cultivation, animal husbandry, fisheries, dairy, beekeeping, or whatever other essential produce is determined by the Central government. A producer company is framed by at least 10 people or at least two foundations, with at least 5 directors and it is a separate legal entity. Members from the Producer company have limited liability, and the risk of the organisation is restricted to its assets. A Producer is any individual who participated in any close-knit or related action to the primary producer. A producer company is consequently an umbrella term that includes all of the following. Harvesting, Producing, reaping, grading, evaluating, pooling, taking care of, promoting, selling, trading the essential makers of the individuals, or the imports of goods or services. The producer company works with the arrangement of co-operatives as organisations and supports the co-operatives to change over into organisations.

MORE DETAILS ABOUT PRODUCER COMPANY: -

  1. OBJECTIVES- The essential goal of a Producer Company is to help its members by advancing their inclinations concerning marketing, production selling, and export of their essential produce. The company can import goods and services that are expected by its members for their advantage.
  2. MEMBERSHIP- A Producer Company can have only active members who are taking part in the production of essential produce, and no less than 2/3rd of the complete number of members ought to participate in primary production activities. The most extreme number of members in a producer company can be 15,000, and each member has one vote regardless of their shareholding.
  3. GOVERNANCE- A Producer Company is overseen by a board of directors, which is elected by the members of the organisation. The board of directors ought to have not less than 5 directors, and they ought to be chosen in a general meeting of the members. The directors are chosen for a term of five years, and they can be reappointed for a limit of two terms.
  4. LIABILITY- Members from a Producer Company have restricted responsibility, and their risk is restricted to the degree of their shareholding in the organisation. This actually intends that in the event of any misfortunes or obligations brought about by the organisation, the members are not by and by at risk past their interest in the organisation.
  5. REPORTING AND AUDITING: -A producer company is expected to keep up with proper books of records and get them audited yearly. The audited financial statement and annual reports of the organisation ought to be introduced to the individuals in the annual general meeting. The organisation must file a financial statement and annual report with the Registrar of Companies.
  6. CONVERSION- An existing helpful society that is participating in the development of essential production can be changed over into a producer company under the Companies Act 2013.
  7. TAXATION- A Producer Company is taxed as a regular organisation under the Income Tax Act, and it is qualified for different tax benefits that are accessible to organisations engaged in agricultural exercises.
  8. SHARE CAPITAL- The minimum authorised and paid-up share capital for a Producer Company is Rs. 5 lakhs and Rs. 1 lakh, respectively. The organisation can raise additional capital by issuing shares to its members, dependent upon the provision of the Companies Act.
  9. INCORPORATION- A Producer Company can be incorporated as a private limited or public limited company, and it should incorporate the words 'Producer Company' in its name. The registration process is like that of some other organisations, and the registration fee is lower than that for a regular organisation.
  10. NABARD REGISTRATION- Under National Bank for Agriculture and Rural Development producer company can register itself to avail technical and financial assistance to promote agriculture activities.

The idea of Farmer Producer Company looks to encourage the advancement of monetarily distressed farmers in India through collaboration and aggregate endeavours.

Such entities look to work in accordance with the basic objective, which ordinarily spins around the shared monetary development of the member. In that capacity, Farmer Company has zero desire to serve the public domain in any capacity.

FARMER PRODUCER COMPANY OBJECTIVE:-

  1. The production, procurement, grading, harvesting, pooling, marketing, handling, selling of the item or import of goods and services to assist the member.
  2. Processing includes distilling, preserving, canning, brewing, and packaging the produce of members.
  3. Providing mutual assistance and education to its member
  4. Providing research and development, training, consultancy, technical services and so on for promoting interest of members.
  5. Provide insurance for the produce of the producer
  6. Provide welfare measures for its member

ADVANTAGES OF THE FARMER PRODUCER COMPANY: -

  1. ACCEPTANCE OF DEPOSIT- The overarching bylaw allows the producer company to acknowledge a deposit in the form of a fixed deposit or a recurring deposit.
  2. SECURITY LOAN- Farmer Producer companies are lawfully permitted to work as lending agencies. They are qualified to loan credit against fixed deposits, gold and government securities.
  3. MEMBERS PROFIT- The benefit or income created by the farmer producer company stays inside the association and is circulated among the serving members.
  4. ON AGRICULTURE INCOME THERE WILL BE NO TAX- Accordingly, no taxes are levied on the benefit created by the producer company. These entities are excluded from addressing any tax obligations by the IT department.
  5. MEMBERS LOAN FACILITY- Farmer Producer Companies are lawfully qualified to dispense the credit to the established members.

REGISTRATION PROCEDURE FOR FARMER PRODUCER COMPANY:-

Members need to make an application in the e-form, viz SPICE+ on the MCA gateway. The said structure is accessible under the service section part of the MCA portal which the candidate can access after creating the account.

SPICE+e form is divided in two parts which act as an online application.

PART A and B

Part A legalise the proposed name , Part B renders the services like:-

  • Incorporation
  • DIN (Director Identification Number) allotment
  • PAN (Permanent Account Number) Allotment
  • TAN (Tax Account Number) allotment
  • ESIC registration
  • GSTIN allotment
  • Opening of Bank Account

Spice+ refers to a coordinated digital form that renders 10 services by three distinct ministries working at the central and state level. This e-form saves time and cost for the candidate and works on enrollment. Spice+ e-form is presented by the Government of India given the continuous drive of Ease Of Doing Business (EODB). The Ministry of Corporate Affairs generally requires thirty days to grant the certificate of enrollment from the date of the receipt of the application.

DOCUMENTS REQUIRED FOR REGISTRATION:-

  • PAN & Photographs of the active directors & shareholders
  • Aadhar card, Driving License, passport, & voter ID of the Directors, members, and shareholders.
  • Address Proof- Bank Statement, utility bills such as landline bill, mobile bill, and electricity bill
  • Producer Proof
  • Sarpanch letter/ /Khasra - Khatauni/ Income Tax Return (ITR)with Agriculture Income/ Any other proof a person as a serving member
  • Registered Address proof
  • No objection certificate from the owner, Utility bill and Rent agreement
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