How to Start a Producer Company for Farmers?

by Enterslice ITES Pvt. Ltd. Start and Manage Business

Before you dive into how to start a producer company for farmers, you must understand the significance of a producer company.

More than 60% of the population in India is either directly or indirectly dependent on agriculture. But the sad reality is that Indian farmers are the one who is suffering a lot and are completely unorganized. It is so because they aren't able to use the latest technologies in the agriculture sector production.

Considering the same, the Indian Government set up an expert committee to look into this matter. Therefore, in the year 2002, the committee introduced the Producer Company concept to the Indian economy. Since then, the primary producer got great relief by gaining access to input, credit, production technology, market, etc.

Start a Producer Company for Farmers

In this blog, our principal focus would be on the following points:

·         Meaning of Producer Company
·         Basic requirements for Producer Company Registration in India
·         Pre-incorporation checklists
·         Procedures for Producer Company Registration

Meaning of Producer Company

A producer company is a legally recognized body of agriculturists or farmers established with the aim to upgrade their living standards and assure a good status of their available support, incomes, and profitability.

Basic requirements for Producer Company Registration in India

For obtaining the producer company registration in India, you have to meet the following requirements:

·   There must be at least 10 individuals in the company;
·        There should be at least 2 producer institution;
·        There should be a minimum of 5 directors and 10 members;
·        There should be a minimum paid-up capital of Rs. 5 lakhs;
·        A producer company can only have equity share capital;
·     The board meetings should be held at least once in three months, and at least four board meetings should be held every year;

Pre-incorporation checklists

For obtaining the registration, all the directors and shareholders need to submit the following documents:

For Directors and Shareholders of the company

·    A copy of the identity card that could be PAN card or Passport or Voter ID card;
·       Telephone or Mobile bill or the latest bank statements;
·        Passport size photographs of every director and shareholder;
·   A copy of the address proof that could be the driving license or Passport or the Election ID card;

For Registered Office (Residential or Commercial)

· A scanned copy of any utility bill;
· A copy of the rent agreement along with the NOC from the landlord;
· In case the property is owned, then a copy of property papers are required.

If you want to know about the annual compliances of Producer Company, then click here.

Procedures for Producer Company Registration

The procedure of a producer company registration follows the same steps as that of the private company registration. The steps involved in the registration process are as follows:

Step1: Obtaining DSC from the certifying authority

DSC stands for a digital signature certificate which is quite crucial for filling an application form online. DSC is obligatory for all the directors of the company and is issued by the certifying authority.

Step2: Name approval application

After you have DSC, you are supposed to apply for company's name approval from the Registrar of Companies (ROC). You can use RUN (Reserving Unique Name) service where you can propose two names for the company. The proposed name must be unique and must not match with any existing company in the same business class.

Step3: File SPICe form or INC-32

SPICe form or INC-32 can be applied to obtain DIN (Director Identification Number), PAN and TAN of the company, CIN (Corporate Identity Number), and Certificate of Incorporation.

For filing INC-32 or SPICe, you need to submit all the above-described documents along with the MoA (Memorandum of Association) and AoA (Articles of Association) of the company.

Step4: Final Incorporation

Once the ROC finds the documents to be correct and valid, it will issue a CIN along with the Certificate of Incorporation (COI). The process may take around 7-10 working days.

Along with this, the procedure for a producer company for farmers completes. If you are going to open a Producer Company and wish to register it, then visit Enterslice. We are one of the leading company registration consultants in India.

Source by: http://bit.ly/2GB730F