According to the Companies Act, 1956; a producer company can be formed by 10 or more persons; 2 or more institutions; or by a combination of both, there is no upper limitation on the number of members. The one of the objectives for the formation of producer company should be procurement, production, harvesting, grading, pooling, handling, marketing, selling or export of the product or import of good and services for the benefit of members.
The producer company facilitates the formation of co-operatives as companies and support the co-operatives to convert into companies. The concept of farmer Producer Company seeks to foster the betterment of financially aggrieved farmers in India through synergy and collective efforts.
Such entities seek to operate in line with the underlying objects, which typically revolve around the mutual financial growth of the member. As such, Farmer Company has no intention to serve the public domain in any way.
5 Digital Signature Certificates
5 Director Identification Numbers
Name Approval Application
Stamp duty on INR 5 Lakh Authorized Capital
Producer Company Incorporation Certificate
10 e-Copies of Share Certificate
Copy of e-MOA & e-AOA
e-PAN
e-TAN
ESIC Registration through SPICe Plus
PF Registration through SPICe Plus
Bank Account opening (feature) through SPICe Plus
5 Digital Signature Certificates
5 Director Identification Numbers
Name Approval Application
Stamp duty on INR 5 Lakh Authorized Capital
Producer Company Incorporation Certificate
10 e-Copies of Share Certificate
Copy of e-MOA & e-AOA
e-PAN
e-TAN
ESIC Registration through SPICe Plus
PF Registration through SPICe Plus
Bank Account opening (feature) through SPICe Plus
GST Registration
GST Returns for 3 months
INC-20A Filing
5 Digital Signature Certificates
5 Director Identification Numbers
1 Name Approval Application
Stamp duty on INR 5 Lakh Authorized Capital
Producer Company Incorporation Certificate
10 e-Copies of Share Certificate
Copy of e-MOA & e-AOA
e-PAN
e-TAN
ESIC Registration through SPICe Plus
PF Registration through SPICe Plus
Bank Account opening (feature) through SPICe Plus
GST Registration
GST Return for 6 months
INC-20A Filing
Appointment of 1st auditor
SSI/MSME Registration
Free Book Keeping and Tax Consultancy
The producer company is essentially permitted to undertake any of the following tasks by itself or through other entities on behalf of the members:
The procurement, production, harvesting, grading, pooling, handling, marketing, selling or export of the product or import of good and services for the benefit of members.
Processing including preserving, distilling, brewing, canning, & packaging the produce of members.
Manufacture, sale, or supply of machinery, equipment or consumables to its members
Providing education to its members and others on basis of mutual assistance principles.
Giving technical services, consultancy services, research and development, training, etc, for promoting interest of members.
Generation, transmission and distribution of power. Restoration of land and water resources, its use conversation and communication relating to primary produce.
Insurance of primary produce and their producers.
Promotion of techniques of mutuality and mutual assistance.
Welfare measures for benefit of members.
Any other activity which is ancillary or incidental to above-mentioned objectives.
Financing all activities or extending credit facilities or financial conditions of the members.
Producer Company is also acknowledged as the mixture of a co-operative society and a registered company. It excels in the unique elements of a cooperative structure, having governing framework similar to that of a company. Such entity primarily refers to a registered corporate served by a group of individuals (mainly farmers) as its members.
Following is the List of Benefits Rendered by The Farmer Producer Company in India:
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The prevailing bylaw permits the Producer Company to accept a deposit in the form of a fixed deposit or a recurring deposit.
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Farmer Producer companies are legally permitted to function as lending agencies. They are eligible to lend credit against the fixed deposits, gold and government securities.
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The profit or income generated by the farmer producer company remains within the organization and is distributed among the serving members.
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As such, no taxes are levied on the profit generated by the Producer Company. Presently, these entities are exempted from addressing any tax obligations imposed by the IT department. .
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Farmer Producer companies are legally eligible to disburse the credit to the founding members.
To begin with the incorporation process, the proposed member needs to make an online application in the e-form, viz Spice+ on the MCA portal. The said form is available under the services section of the MCA portal which the applicant can access after creating the account.
Spice+ e-form acts as online application for company registration, which is divided into two important parts.
The followings are the mandatory documentation for incorporating Farmer producer companies in India:
PAN & Photo
PAN & Photographs of the active directors & shareholders
ID Proof
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 - Khatuni/ 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
At least ten producers to register the company.
Minimum 5 and maximum 15 directors
Maximum 200 members: if the proposed entity willing to function as a private limited company
Note: Inter-state co-operative society functioning as a producer farmer company may have more than 15 Directors for one year from the incorporation date of a producer company.
Part A enables the applicant to legalize the proposed name; meanwhile, part B renders the below-mentioned services:
Incorporation
DIN (Director Identification Number) allotment
PAN (Permanent Account Number) Allotment
TAN (Tax Account Number) allotment
EPFO registration
ESIC registration
GSTIN allotment
Profession Tax registration
Opening of Bank Account
Spice+ refers to an integrated digital form that renders 10 services by three different ministries operating at the central and state level. This e-form saves time and cost for the applicant and simplifies the registration. Spice+ e-form is introduced by the Government of India given the ongoing initiative Ease of Doing Business (EODB). Ministry of Corporate Affairs usually takes thirty days to grant the certificate of registration from the date of the receipt of the application.