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Documents Required for Producer Company Registration: A Detailed Overview

Documents Required for Producer Company Registration

Since 62 percent of the population depends on agriculture in some way for a living, it is well known that the agricultural sector is regarded as the foundation of the Indian economy. However, because they lack the money to buy modern farming methods, Indian farmers are not only unorganized but also in a terrible situation. As a result, it has to work hard to receive its fair part of the profits. As a result, more than 12% of Indian farmers decide to end their lives. In light of their deplorable and pitiful situation, the government ultimately decided to appoint an expert committee to look into the situation. Additionally, the group introduced the idea of a Producer Company in Indian Society in 2002. In this article, we will discuss the Documents required for Producer Company Registration.

What is a Producer Company?

A Producer Company is generally a group of individuals who are involved in the production of primary produce or who have one or more primary produce-related goals. Additionally, the 2002 Companies (Amendment) Act’s Part IXA deals particularly with the Indian Producer Company. Any individual involved in a close-knit or related activity to the primary producers is referred to as a producer. Thus, the name “Producer Company” serves as a catch-all for everything listed below.

Generating, acquiring, grading, pooling, handling, marketing, selling, and exporting the primary producers of the members, or importing products or services.

The objective of the Producer Company

A Producer Company wants to support all small-scale farmers so that they can save more money and have more freedom to choose the most cutting-edge technology for a higher quality of life. The goals or causes described below are what led to the formation of a Producer Company:

  • Production of agricultural core products.
  • Acquiring the main agricultural products.
  • Main agricultural produce is harvested and graded.
  • Primary agricultural produce handling and poling.
  • Main agricultural products are marketed.
  • Activities involving the sale or import/export of agricultural products.

Additionally, a Producer Company’s primary goal is to make it easier to establish a cooperative business as a private company and to increase the likelihood that an existing cooperative firm can be converted into a private company.

Pre-Registration is necessary in order to establish a Producer Company in India.

To establish such entities, a minimum of 10 Producers must be present. The producer will be responsible for the business’s promotion and incorporation. Promoters can be either persons or producer institutions.

  • It is necessary to have at least 5 Directors present in order to form a Producer Company in India.
  • In most businesses, directors and promoters can be the same people.
  • There is no restriction on the number of members.
  • The production company will always be considered a private company and never a public company.
  • Only equity share capital should be present in the proposed Producer Company.
  • The frequency of at least four board meetings each year should be conducted every three months.

Benefits of Farmer Producer Company Registration

The following is a summary of the advantages or benefits associated with the registration of a Producer Company:

  • Producer Company is recognized as a distinct legal entity.
  • A producer company’s members are only responsible for the amount still owed on the subscribed shares.
  • Compared to any unregistered organization of farmers or agriculturalists, Producer Company gives its members more legitimacy.
  • Producer Company offers the convenience of simple management. Furthermore, the ROC (Registrar of Companies) can be notified if the firm wishes to change its Board of Management by simply completing the necessary documents.
  • A production business with a valid registration can simply buy or sell real estate under its name.
  • A producer firm is qualified to receive deposits from farmers or to lend money to them at an affordable interest rate.
  • A Production Company is qualified to receive FD (Fixed Deposits)[1] or RD (Revolving Deposits) deposits (Recurring Deposits). 

Documents needed for a Producer Company 

The following is a list of the documents required to form a Producer Company:

  • From each and every director and stockholder
  • A form of identification such as a passport, voter ID card, or PAN card
  • Address Evidence
  • A replica of the most recent bank statement
  • Utility bills, such as telephone, mobile, or electricity bills
  • Passport-sized images of each Director and Shareholder;
  • Any other evidence that a person is a serving member, such as a Sarpanch Letter, Khasra-Khatuni, an ITR with Agriculture Incomes, etc.

In relation to the Potential Registered Office:

  • A copy of a recent utility bill, preferably from within the last two months.
  • Scanned copies of the rent agreement and the real owner’s NOC (No-Objection Certificate).
  • If the aforementioned property is owned, the ownership records or the sale deed for it should be provided.

Conclusion – Documents Required for Producer Company

The primary goal of bringing up this subject was to create legislation that would permit the conversion of existing cooperatives and their formation into corporations. Additionally, the Indian Producer Company is a corporate body, and Section 581B specifies its goals and activities. One of the main goals of the Registration of a Producer Company is to make it feasible for cooperative businesses to be formed as companies and to make it possible for cooperative businesses that already exist to be converted into companies. The secret to a smooth incorporation procedure is documentation. Therefore, before submitting the documents to the web, the applicant must carefully organize them and confirm their legitimacy. That concludes the discussion of the documents needed to register a Producer Company. If you need any additional information, let us know at Bizadvisors.io.

Read our article:A Step by Step Process for Farmer Producer Company Registration

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