A producer company may be founded by two or more institutions, ten or more individuals, or a combination of both, according to the Companies Act of 1956. There is no maximum number of members. Procurement, production, harvesting, grading, pooling, handling, marketing, selling, export of the product, or import of goods and services for the benefit of members should be one of the goals for the formation of a producer company.

The producer firm supports the conversion of cooperatives into corporations and helps the development of cooperatives as corporations. The idea behind the farmer producer company is to encourage the improvement of financially disadvantaged farmers in India through cooperation and joint efforts.

These organizations strive to carry out their underlying objectives, which frequently center on the members’ mutual financial gain. Farmer Business does not intend to in any way benefit the public domain as a result.

Primary Goals of Producer Firms

  • The primary goals of the organization are to produce, harvest, procure, grade, pool, handle, market, sell, and export the primary products of the Members or to import goods or services for their benefit. However, the producer company is free to carry out the aforementioned tasks on its own or through any other institution.
  • Processing of its Members’ produce includes canning, drying, distilling, brewing, vinting, and packaging.
  • manufacturing, selling, or providing consumables, mostly to its members.
  • educating its Members and others on the concepts of mutual help.
  • providing technical services, consulting services, training, R&D, and other activities to further the interests of its Members.
  • Power production, transmission, and distribution, as well as the redevelopment of water and land resources and the usage, preservation, and communication of primary produce.
  • Insurance for farmers or their main crop.
  • As the Board may decide, welfare policies or amenities are provided for Members’ use.
  • Any additional activity that is related to or associated with any of the aforementioned activities, as well as any other activities that may further the members’ mutual help and respect for one another.
  • the provision of credit facilities or any other financial services to its Members, as well as the financing of the procurement, processing, marketing, and other operations mentioned in the aforementioned list.

Farmer Producer Business Types

Production Companies

Production, sourcing, or manufacture of any primary produce for its members (for subsequent sale to others) are the major duties of producer businesses.

promoting companies

A firm can qualify as a farmer producer company even if it engages in the marketing or promotion of fresh products or offers members and others educational services.

Tech-Services Companies

A producer firm may be registered if it offers producers technical support, offers education and training services, or engages in research and development.

Funding for businesses

Any firm that finances producer activities may register as a farmer producer company, whether those operations are in the production, marketing, or development fields.

Construction Companies

Companies that provide producers with infrastructure, whether in the form of energy, water resources, irrigation methods, land use, or consultancy over the same, may be referred to as producer companies.

Documents Needed for FPO Registration

Directors and Shareholders’ Submission

  • a scanned copy of your passport or PAN card (Foreign Nationals & NRIs)
  • Voter ID, passport, or driver’s licence scan
  • a passport-size scan of the most recent bank statement, phone bill, utility bill, or 
  • mobile bill Signature from a sample photo (blank document with signature [directors only])

For the registered office 

  • Scanned copies of the most recent bank statements, phone or mobile bills, electricity or gas bills, a notarized English rental agreement, and a no-objection certificate from the property owner
  • English-language scan of a sale deed registration or property deed (in case of owned property)

Note: Your residence can also serve as your registered office if you like.

Advantages of the Farmer Producer Company

The combination of a registered corporation and a cooperative organization is known as the Producer Company. It excels at the distinctive features of a cooperative organization and has a governing structure akin to that of a business. This term typically refers to a registered corporation that has a number of people (often farmers) serving as its members.

The list of benefits provided by The Farmer Producer Company in India is as follows:

Acceptance of Deposit

The Producer Company is allowed to accept a deposit in the form of a fixed deposit or a recurring deposit under the current bylaw.

loan secured by security

Legally, Farmer Producer Corporations may act as lending institutions. They are able to borrow money using fixed deposits, gold, and government-issued assets as collateral.

Distribution of profits to members

The farmer producer company keeps its revenue or profit, and it distributes it among the working members of the group.

There are no taxes on agricultural revenue.

As a result, the Producer Company’s profit is not subject to taxes. These organizations are currently exempt from any tax responsibilities imposed by the IT department.

Procedure for Registering a Production Business

Although the Producer Business Registration process is straightforward, it must be carried out by a professional. In addition, the government fully altered the process to encourage ease of doing business. Instead, the process becomes a little more complicated as a result of the government. Hubco.in, on the other hand, has expertise registering more than 200 producer companies and overseeing hundreds of producer companies all over India. Learn the six stages for registering a producer company.


STEP 1 

Compile all the documentation.

The first step is to acquire all the necessary documents according to the above instructions and send them to us in scan copy at info@hubco.in. No tangible copies of the documents are necessary.

Step 2 

Request name approval.

Applying for a company name is the next step after requesting name approval. According to Rule 8 of the Business Incorporation Rules, the company name must be. Name approval is only good for 20 days.

STEP 3: 

Request electronic signatures

To proceed, you must apply for a digital signature. All of the company’s directors and stockholders must have a DSC. DSC is a pen drive-based signature that is used on computers to sign documents online.

STEP 4: 

Prepare all necessary paperwork.

The following step is to get all the required documentation ready for company registration after the name has been approved. The MOA, AOA, INC 9, INC 10, DIR 2, and other documents are ready and available for signing at this time.

STEP 5: 

Register your company

The next step is to file the company’s incorporation with SPICE FORM INC 32 after the promoters have all signed the necessary paperwork. Moreover, the government has also waived the costs at this time.

STEP 6:

Monitoring and approval

Following up with the government is the next step after submitting your application for company registration. Your firm will be registered if all of your paperwork is in order and the government issues the registration certificate.

If you are in Chennai and want to get your company registered Visit: https://www.phoenixtax.in/