Producer Company Registration

Producer Company Registration has allowed the producers to form a company for achieving targets and gaining a profit from the market. A company of producers is a mixture or combination of a cooperative society and a private limited company incorporated under the Companies Act, 1956 and the Companies Act, 2013.

The object as specified in the act must be adhered to and complied with. The government has launched various schemes and incentives under NABARD for small farmers' agribusiness consortium which provides support for the promotion of Farmer Producer Organisation (FPO). The credit guarantee fund has been made for reducing the risk of financial institutions lending to FPO without any collateral.

Process for Farmer Producer Company Registration Under Companies Act, 2013

The following are the steps in the procedure for registration of a producer under the Companies Act:

Step 1: Obtaining for Digital Signature Certificate (DSC) and Director Identification Number (DIN)

The registration is completely online which requires a DSC for signing the forms. The directors shall apply for DIN and Class 3 DSC for filing incorporation forms.

Step 2: Name Approval Application

The name application is done by the SPICe RUN Form. The industrial code of activity and objects required for making name approval applications.

Step 3: Filing of SPICe Form

Once the name approval is received, then details relating to the producer company registration are drafted in the SPICe+ form. It is a simplified program for the incorporation of a company electronically. The details of the form are:

• Details of the Producer Company Online: The objects of the company as provided in the relevant section of the Companies act. There must be a minimum of five directors and not more than 15 directors. However, in the case of an inter-state cooperative society formed as a company of producers, then it can have more than fifteen directors for a period of one year from the incorporation date.
• Details of Members : There is a requirement of ten or more individuals or two or more producer company registration and a combination of both. The liability of members is limited by the memorandum to the unpaid amount on the shares held by him/her..
• Application for PAN and TAN
• Declaration by Directors and Subscribers
• Declaration and Certification by Professional

Step 4: Filing of E-MOA and E-AOA

The forms MOA and AOA are to be drafted at the time of registration application. The MOA describes the constitution of the company. The share capital includes only equity shares. The AOA states the internal rules and regulations of the management of the company.

Step 5: Issuance of Certificate of Incorporation (COI)

After the submission of all the documents and their approval is received within 30 days through the COI. The bank account is opened after receiving the certificate of incorporation.

Step 6: Issuance of PAN and TAN

The PAN and TAN are issued with the incorporation certificate of the company.

Producer Company Registration Documents

The given are documents for the registration of the company as follows:;

• Step 1 : Declaration of director in DIR-2 with a copy of identity proof and address proof.
• Step 2 : NOC from the owner in case of the rented property or sale deed in case of owned property
• Step 3 : Proof of office address such as rent agreement, etc. with rent receipts..
• Step 4 : Copies of a Utility bill not older than 2 months..
• Step 5 : All subscribers to the memorandum must have their valid DSC...
• Step 6 : mail ID and contact number.
• Step 7 : Photograph of subscribers and directors to the memorandum
• Step 8 : Certificate of incorporation.

Objects of Producer Company Registration

The main objects of the producer as per the Companies Act, 1956 and the Companies Act, 2013 are

1. Production

The activities involve any type of production relating to the harvesting, procurement, pooling, marketing or export of agriculture.

2. Processing

It involves activities including preserving, distilling, drying, brewing, venting and canning, etc

3. Manufacturing

Activities relating to manufacturing like a supply of machinery or any other equipment involved in it..

4. Education

To provide education on mutual assistance to the members and others..

5. Technical Services

Services like research and development, consultancy services and other activities for the promotion of the interest of the members..

6. Distribution of Powers for Producer Company Registration

Activities like generation, the transmission of land and water resources and conservation of these resources..

7. Promoting Techniques of Mutual Assistance

It promotes techniques of mutual assistance between members

8. Welfare Measures for Benefit of Members Decided by the Board

It promotes welfare measures and other facilities for members..

9. Ancillary Activities Incidental like Financing of Procurement, Processing, Marketing, or Other Activities.

Activities such as financing of procurement, processing, marketing and other activities.

NABARD Schemes for Farmer Producer Company

The National Bank for Agriculture and rural development (NABARD) has supported the producer organizations (PO) in meeting the needs of producers. The Schemes provided are given as follows:

• Producers Organisation Development Fund (PODF )

A fund is created under NABARD named Producers Organisation Development Fund in 2011 for supporting organizations on three tiers namely for producer company registration; credit facilitation, capacity building and market linkage support. This is a new scheme i.e., PODF interest differential means the total amount is divided by appropriation of interest for promotion and nurturing.

• Producers Organization Development and Upliftment Corpus (PRODUCE) Fund

This fund was created by the Government in 2014-15 for building 2000 Farmer Produce Organizations (FPO). The goal is to promote new FPO and support their initial financial requirements for making sustainable business enterprises. Examples of PO are agricultural, non-farm products, artistic products, etc.

• Central Sector Scheme for Promotion and Nurturing of Farmers Producers Organizations (FPO)

The Government has launched this scheme on the formation of 10000 FPOs and their promotion. A Credit guarantee fund of Rs. 1000 crore having an equal contribution from the government for producer company registration and NABARD set up under a subsidiary of NABARD.

• Farm Sector Promotion Fund

The scheme is providing financial assistance to institutions with farmers' clubs for providing adoption of technologies by the agriculturists by the provision of training cum exposure visits and organizing for giving demonstrations using various technologies. Financial credit counselling is organized by providing support for financial literacy.

• Skill development for improvement in the productivity

There are schemes for developing the skills of the producers by learning new techniques and keeping them updated.

• Exposure visits and expert meetings, etc.

The company must arrange meetings with experts of the fields and gain knowledge from the specialists.

• Capacity building initiative

The schemes arranged for making connections within the community with the perspective of gaining knowledge and meeting expectations of consumers.

Benefits to Members of Farmer Producer Organization

The following are the benefits provided by the articles to the members of the company:

• Every member of producer company registration must obtain such value for the produce pooled and supplied as the Board of Directors determines and the remaining amount is to be distributed later in cash or consideration other than cash or allotment of equity shares in proportion to the product given to the company in that financial year
• Every member on the share capital contribution receives a limited return like they can be allotted bonus shares as per the provisions of the act.
• In case of any surplus amount, once the return is distributed then can be disbursed in the form of a patronage bonus between the members in proportion to the business done by the company and decided by the members in the general meeting.