Ridhi Karan & Associates

Producer Company

Farmer Producer company Registration

Do you want to start a business of agricultural production, export and trading of primary production in India? Then you are at right stage because Producer Company is the most easy and affordable way to start loan business in India. It only requires 10 persons with easy documents requirement to start the Producer Company. The minimum capital requirement for Producer Company registration is Rs. 5 lakh.

Producer Company aims at empowering all the small and marginal scale farmers so that their economies can be unlocked and they could also opt the latest and new technologies to lead better and improved lives. Are you still waiting? Scroll down right away and get your Producer Company Registration done with no fault at the least cost, ensuring the successful completion of the process in your preferred place!

Note: Farmer Company Can Also Serve A Role Of A Lending Agency With RBI’s Consent. 

Objectives of the Farmer Producer Company 

The producer company is essentially permitted to undertake any of the following tasks by itself or via other entities on behalf of the members

  • Processing includes preserving, distilling, brewing, canning, & packaging its members’ produce.
  • Manufacture, sale, or supply of machinery, or consumables primarily to its members
  • Facilitate education to the serving members in relation to the object of the company
  • Facilitate tech-based services, training, R&D, consultancy services
  • To perform undertakings for the incentivization of the member’s interest.
  • Generating & distributing power, restoration of land & water resources, using conservation as well as communication, are relatable to primary produce
  • Facilitating insurance to primary produce of the producers
  • Fostering thrift of mutuality & mutual assistance within the members
  • Taking relevant measures to maximize the benefit of the members
  • Provide fiscal aid in form of a credit to boost procurement, processing, marketing effort

What are the fundamental benefits of the Farmer Producer Company?

Producer Company is also acknowledged as the hybrid of a co-operative society and a registered entity. It excels on 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 the group of individuals (mainly farmers) as its members.

Following Is The List Of Benefits Rendered By The Farmer Producer Company In India.

Deposit Acceptance

The prevailing bylaw permits the Producer Company to accept a deposit in the form of a fixed deposit (aka FD) or a recurring deposit.

Loan against security

Farmer Producer companies are legally permitted to function as lending agencies. They are eligible to lend credit against the FD, gold, Govt securities.

Profit allocation to the members

The profit or income generated by the farmer producer company remains within the organization and is distributed among the serving members.

No taxes on the agricultural income 

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.

Loan Facility to Members

Farmer Producer companies are legally eligible to disburse the credit to the founding members.

Farmer Producer Company Incorporation: Mandatory Documents 

Following are the mandatory documentation for incorporating Farmer producer companies in India;

  • PAN & Photo
  • PAN & Photographs of the active directors & shareholders
  • ID Proof
  • Aadhar card, DL, 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
  • Owner’s No objection certificate, utility bill, and Rent agreement

Pre-incorporation legalities for incorporating Farmer Producer Company in India

  • At least ten producers: Producers who registered the company. At least 5 and a maximum of 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 as a producer company.

Why Approach E-Taxwala for Incorporation services?

There are plenty of legal requisites that one needs to comply with when it comes to the company incorporation process. From name approval to document authorization to post registration legalities, there are heaps of mandatory compliances that could become a daunting task for the first-timer. E-Taxwala ‘s professionals are competent enough to handle the incorporation legalities with ease and keep things transparent throughout the process so that clients do not face any hassle in commencing their business journey.

Why E-Taxwala is best for Incorporation Services?

  • Facilitate comprehensive support throughout the incorporation process;
  • Well versed of underlying compliances and registration legalities;
  • In-depth experience in tackling post-incorporation compliances;
  • Offers matchless assistance for paperwork and form-filling;
  • Charges Nominal fees for incorporation;

Frequently Asked Questions

1. How many people are required to register a Producer Company?

A minimum of five people are required to register a producer company in India.

2. What are the documents required for registration?

Identity proof and address proof is mandatory for all the proposed Directors of the Producer Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.

3. How long it will take to incorporate a producer company?

E-Taxwala can incorporate a Producer Company for in 20-30 days. The time taken for registration will depend on the submission of relevant documents by the client and the speed of Government Approvals. To ensure speedy registration, please choose a unique name for your Company and ensure you have all the required documents prior to starting the registration process.

4. How long is the registration of the company valid?

Once a Company is incorporated, it will be active and in existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and may be struck off from the register after a period of time. A struck-off Company can be revived for a period of up to 20 years.

5. What is a Digital Signature Certificate?

A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature. Hence, a Digital Signature is required for all Directors of a proposed Producer Company.

6. What is Director Identification Number?

Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.

7. What are the requirements to be a Director?

The Director needs to be over 18 years of age and must be a natural person. The Director must be involved in farming activities.

8. Is an office required for starting a Producer company?

An address in India where the registered office of the Company will be situated is required. The premises can be commercial/agricultural/residential where communication from the MCA will be received.

Cost and time for Producer Company registration

Generally, it takes 10 to 15 days to register a Producer Company and its cost Rs. 30,000/- (inclusive of all taxes and fees). The complete cost breakup of Producer Company registration is as follows;.

Items

Qty

Price

Digital Signature Certificate (DSC)

10

8,500

Director Identification Number (DIN)

3

Nil

Name Approval

1

1,000

MOA, AOA and Incorporation Fee

Nil

Stamp Duty of the Respective State*

1,500

PAN and Tan Application

200

INC 22

300

CA Certification

1,500

Professional Fee

9,745

Goods and Service Tax (GST)

1,755

Company Registration Cost in India

 30,000