What is a Producer Company?
A producer company is a body of farmers/ agriculturists, Incorporation of producer company is for benefits given to Farmers Under Companies Act 1956, a Producer Company can be formed as per Section 581C of Chapter II of Companies Act, 1956 by 10 individuals (or more) or 2 institutions (or more) or by a combination of both (10 individuals and 2 institutions) having their business objective as per Section 581B as one of the follows:
- Selling, or Export
- Processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its Members
- Manufacture, sale or supply of machinery, equipment or consumables mainly to its Members
- Providing education on the mutual assistance principles to its Members and others
- Rendering technical services, consultancy services, training, research and development
- Insurance of producers or their primary produce
- Promoting techniques of mutuality and mutual assistance
- Any other activity, ancillary or incidental to any of the activities mentioned above.
The process of Registering a Producer Company is similar to register a Private Limited Company.
- First step is to obtain Digital Signature (DSC) and Director Identification Number (DIN) for the proposed first Directors of the company.
- An application for name reservation in Form INC-1 is to be filed with the relevant Registrar of Companies (ROC) along with 6 names in the order of preference.
- As per the Act the name of a producer company must end with the words “Producer Company”.
- an application for incorporation is to be filed in the prescribed format for the incorporation of the Producer Company along with following documents:
- Memorandum of Association
- Articles of Association
- A Declaration by a professional in Form- INC-8
- The directors consent Letter in the Form DIR – 2 and details in DIR – 8
- All the drafted documents must be attached to Forms INC – 7, INC – 22 and DIR – 12 and uploaded to the ROC website.
- When Registrar is verified with the application and the documents filed for incorporation of Producer Company, he will approve the same and issue Certificate of Incorporation.
Benefits for Producer Companies
In Indian Economy more than 60% of population depends upon agriculture activities for their livelihood. But our Farmers are struggle a lot to cop of this problem Government of India introduced the Producer Company’s concept to the Indian economy. IN this concept many farmers and Primary Producers come together and get many benefited as follows: