Producer Company serves as a corporate body that specifically deals with the production, procurement, cultivating, grading, and marketing of the primary product with the aid of its members. Farmer Producer Company also aims to facilitate financial aid to the said members via extended credit facilities.
Such companies don’t work for the public domain as their object is to serve its member only. The member enrolment in Producer Company seeks simple documentation and process. Such companies can also operate as lending companies without RBI’s consent.
- An entity shall be regarded as a producer company. if;
- It is constituted by a group of producers for agri-based undertakings;
- It is a registered corporate and a legalized establishment;
- Producers serving as the company’s shareholders;
- It deals with business undertakings concerning the primary produce;
- It operates for the financial well-being of the member producers;
- Profit margins are shared amongst the members, and the rest finds their way to the share capital or reserves.
Producer Company is also regarded as the hybrid of company & co-operative society. It entails the goodness of a cooperative entity & flexibility of a company and excels on the unique elements of cooperative structure with a regulatory framework identical to that of a company.
What are the key features of the Farmer Producer Company?
Understanding the features of the farmer producer company is the best way to get more clarity on its nature and objectives.
A producer company essentially refers to a production entity operated by the group of producers (mainly farmers) acting as its members. Such companies aim to foster the thrift of mutuality and mutual assistance among the members.
Following are some common benefits facilitated by the registered farmer producer company in India.
Deposit Acceptance
Producer Company has the right to accept a deposit in the form of a fixed deposit (FD) or a recurring deposit.
Loan against security
Producer Company can also function as a lending company that can disburse loans against gold, property, FD, Govt securities.
Ensure Members Upliftment
Since Farmer Producer Company is restrained from operating in the public domain, all the profit and benefits find it way to its serving members only.
No taxes on the agricultural income
Producer Company that generates profit from agricultural-based activities is exempted from paying any taxes to the IT department.
Loan Facility to Members
Producer Company has the rights to lend credit to the serving members.
Documentations required for Farmer Producer Company Registration
Following are the mandatory documentations that one needs to arrange for the incorporation of the farmer producer company in India:
PAN & Photo
PAN and Photographs for the serving directors and shareholders
ID Proof
Aadhar card, voter ID, DL & passport.
Address Proof
Bank Statement, utility bills such as Electricity bill, phone bill, Landline bill.
Producer Proof
Sarpanch letter/ /Khasra – Khatuni/ ITR with Agriculture Income/ Any other proof that can provide a person as producer
Registered Address proof
Utility Bill + Rent Agreement + NOC from Owner
Pre-incorporation requisites for Farmer Producer Company in India
- At Least 10 Producers: Producers who will incentivize/incorporate the company. Here the promoter can be person or producer institutes.
- At Least 5 Directors
- Typically, Promoters and Directors are the same in Companies.
Registration of Farmer Producer Company in India
To initiate the incorporation process, the member of the proposed producer company needs to file an e-form, viz Spice+, on the MCA’s portal. To so do, first, the applicant to need register on the MCA portal and open the Spice+ form enlisted under the Services section on the home page.
Spice+ serves as an e-form for company incorporation, which mainly entails two parts:
Part A and Part B
Part A allows the applicant to register the proposed company name; meanwhile, the Part B facilitates the following services;
Incorporation
- PAN allotment
- DIN allotment
- TAN allotment
- EPFO registration
- ESIC registration
- Profession Tax registration
- Opening of Bank Account
- GSTIN allotment
Spice+ is an integrated web-based application facilitating ten services by 3 Central Govt Ministries & Departments, i.e. MCA, Ministry of Labour & the Department of Revenue in the Finance ministry[1], & One State Government (Maharashtra). This form allows the applicant to save cost and time for commencing a new business in India. Spice+ is the result of continual government efforts towards Ease of Doing Business (EODB).
Why Approach CorpBiz for Incorporation services?
There are a lot of legalities that need to be followed by the applicant when it comes to company incorporation. From name approval to post-registration compliances, there is an endless list of legal requisites that could become a hassle for the first-timer. Corpbiz ‘s professionals not only simplify the incorporation legalities but also allows the applicant to keep a constant tab on the progress for the application in question.
Five Reasons to Choose CorpBiz for Incorporation Services:
- End-to-End Support for Incorporation process;
- Renders better clarity on the applicable legalities and provisions;
- Vast experience in handling post-incorporation compliances;
- Ensure seamless paperwork and form-filling;
- Renders class-leading service and Charges Nominal fees for incorporation;
Conclusion
Farmer Producer Company operates under the ambit of Company Act, 2013 and is liable to comply with the provisions mentioned therein. Each member, producer or director of the producer company is liable to perform their duties in line with norms of the provisions. Write to us for grabbing more detail or information on the Farmer Producer Company registration process.
Read our article:What are the various benefits of registration of Producer Company in India?
