Producer Company Registration

Producer Company Registration in India - An Overview

YOU CAN NOW REGISTER A Producer Company IN INDIA AT JUST RS. 24,999 (ALL INCLUSIVE)*

The economy of India is an agricultural centric economy. Around 60% of the population depends on agricultural activities for their livelihood. But, the primary producers and farmers have had a long struggle in India. In order to address these problems, the Government of India set up an expert committee, led by Y.K. Alagh (an economist) to look into the matter. In the year 2002, they introduced the Producer companies concept to the Indian economy. Since then, they have helped primary producers gain access to input, credit, production technology, market etc.



Authorized activities for Producer companies

The Producer Company is required to deal with the produce of its members and is authorized to carry on any of the following activities:

  • Processing (processing also includes, preserving, brewing, vinting, drying, distilling, canning and packaging) of the produce of its members;
  • Manufacture, sale or supply of equipment, machinery or consumables to its producer members; To provide education on the mutual assistance principles to the producer members of the producer company and others;
  • To render consultancy services, technical services, training, R&D and all other required activities for promoting the interests of producer members;
  • Generation, transmission and distribution of power, conservation and communication relatable to primary produce, revitalisation of land and water resources,
  • Insurance of the primary produce and its producer;
  • To promote the techniques of mutuality and mutual assistance;
  • The welfare of members as may be decided by the Board;
  • Financing of procurement, marketing, processing or other activities such as extending of credit facilities or any other financial assistance to its producer members.
  • Any other activity (ancillary or incidental to the main objectives of the producer company) in order to promote the mutual assistance amongst the producer members and the lines of principles of mutuality.

    • Advantages of a Producer Company

  • Every member of the Company will receive a value for the product or products pooled and supplied as determined by the Director. The amount will be distributed in cash or by allotment of equity shares. This may be subject to the conditions of the Board.
  • Members can get bonus shares in proportion to the amount held.
  • The additional amount that may be remaining after making provision for payment of limited return and reserves can be distributed as patronage bonus. This will be in proportion to their participation in business activities either in cash or through equity shares.
  • Members of Producer Company are also eligible to get financial assistance by way of credit facility for a period not exceeding 6 months.
  • Loans and advances against security as specified in articles, upon the condition of repayment within a period of 3 months and not more than 7 years.

    • Producer Company Registration Process

    Company Registration in India will boost the progress of startups and provide an additional edge over those who have not registered. The Ministry of Corporate Affairs governs the company registration process with rules and regulations framed following the law.

  • Step 1: Application for DSC (Digital Signature Certificate).
  • Step 2: Application for the name availability.
  • Step 3: Filing of the eMoa and eAoA to register a private limited company along with ESI-PF, PAN & TAN application
  • Step 4: Issued certificate of incorporation by RoC with PAN and TAN

    • Government schemes for Farmer Producer Companies

    Small Farmers Agri-business Consortium (SFAC) was mandated by Department of Agriculture and Cooperation, Ministry of Agriculture, Govt. of India, to support the State Governments in the formation of Farmer Producer Organizations (FPOs). The initiative which started in 2011-12 under the two Central Sector Schemes of Vegetable Initiative for Urban Clusters (VIUC) and Integrated Development of 60,000 Pulses Villages in Rainfed Areas has expanded in its scope and covers special FPO projects taken up by some State Governments under general Rashtriya Krishi Vikas Yojana (RKVY) funds as well as under the National Demonstration Project under the National Food Security Mission (NFSM) and Mission for Integrated Development of Horticulture (MIDH).