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Producer Co. Reg. Startup

Producer Co.

  • Producer Co.

Description

Starting a Farmer Producer Company

If you’re looking to start a Farmer Producer Company, here’s a simple guide. As per the Companies Act of 1956, you can set up this type of company if:

  1. You have at least 10 individuals or 2 institutions joining hands.
  2. There’s no cap on the maximum number of members.
  3. The main goal is to manage and boost activities like producing, collecting, grading, selling, or even importing goods and services for the members’ benefit.
  4. Think of this Farmer Producer Company as a modern twist on traditional co-operatives. It lets co-operatives step into the corporate world or helps them transition into more structured companies. The real beauty of this concept is how it supports struggling farmers in India, encouraging them to work together for financial growth.
  5. One thing to remember: These companies mainly focus on benefiting their members and aren’t primarily set up for the public’s benefit.

Bonus Point: With the green light from RBI, a Farmer Company can also act as a lending agency.

Goals of the Farmer Producer Company

The Farmer Producer Company aims to help and support its members in the following ways:

  1. Helping members buy, produce, gather, grade, combine, manage, market, sell, or even export their goods. They can also assist in importing goods and services for members.
  2. Assisting in processing members’ products, which includes preserving, making drinks, and packing.
  3. Offering machines, tools, or everyday items for sale to its members.
  4. Educating its members and the community by sharing helpful insights and principles.
  5. Offering technical help, advice, research, training, and more to boost members’ success.
  6. Supporting in producing and sharing power, taking care of land and water, and sharing information about main products.
  7. Providing insurance for the main products and their producers.
  8. Sharing methods that emphasize teamwork and shared support.
  9. Introducing welfare programs to better serve members.
  10. Engaging in any activity related to the above points.
  11. Helping finance all these activities or providing loans and financial help to members.

Our main focus is to ensure the growth and success of our members in the farming sector.

Top Advantages of Farmer Producer Companies in India:

  1. Accepting Deposits

Farmer Producer Companies can easily take in fixed or recurring deposits, thanks to current regulations.

  1. Offering Loans with Collateral

These companies can operate as loan providers. They can give out loans using fixed deposits, gold, or government bonds as collateral.

  1. Sharing Profits with Members

All the earnings these companies make are kept inside the business. Then, they fairly distribute these profits among their active members.

  1. Tax-Free Agricultural Income

The great thing is, the profits these companies make are tax-free! They don’t need to worry about any tax duties from the IT department right now.

  1. Providing Loans to Founding Members

Not just that, Farmer Producer Companies can also legally offer loans to their initial members

Setting Up a Farmer Producer Company in India: Essential Paperwork

If you’re looking to set up a Farmer Producer Company in India, here’s a simple checklist of the documents you’ll need:

  1. Personal Details:
  • Your PAN card and photo.
  • PAN card and pictures of the main directors & shareholders.
  • Identity Documents:
  • Aadhar card, Driving License, Passport, or Voter ID for all directors, members, and shareholders.
  • Proof of Address:

This can be a bank statement or utility bills like your phone or electricity bill.

  • Evidence of Being a Producer:
  • Documents such as a Sarpanch letter, Khasra-Khatuni, Income Tax Return showing agricultural income, or any other valid document confirming you as an active member in farming.
  • Confirmation of Registered Address:
  • If you’re using rented space, you’ll need a no-objection certificate from the property owner, along with a rent agreement and a utility bill for that address.

How to Easily Register a Farmer Producer Company in India

Starting the registration for a Farmer Producer Company in India is straightforward. First, visit the MCA website and create an account. Once you’re logged in, head to the services section to find the ‘Spice+’ e-form. This form is your one-stop solution for registering a company online.

The Spice+ e-form is split into two main sections:

  • Part A: Here, you can confirm your desired company name.
  • Part B: This section offers various essential services such as:
  • Official company registrationAssigning a Director Identification Number (DIN)
  • Providing Permanent (PAN) and Tax Account Numbers (TAN)
  • Registration for EPFO, ESIC, and GSTIN
  • Profession Tax registration
  • Help with opening a bank account

What’s fantastic about the Spice+ form is that it combines 10 services from three government ministries, both central and state. It’s a digital timesaver, cutting costs and making registration easier. Introduced by the Government of India, this initiative supports the “Ease of Doing Business” campaign. Typically, the Ministry of Corporate Affairs will issue your registration certificate within 30 days from the application’s submission date.

BusinessBadhega’s Unique Selling Proposition (USP):

“Your Business Vision, Our Expertise! At BusinessBadhega, we don’t just help you start your business; we walk with you every step of the way. From initial incorporation to post-registration needs, our seasoned team ensures your business is set up right, and stays compliant. And with our transparent and budget-friendly pricing, you get unparalleled value. Let’s partner for success and transform your business aspirations into a thriving reality!”

Producer Co. in Mumbai, Delhi, Chennai, Kolkata, Hyderabad, Bangalore, Kerala, Pondicherry, Bhuvneshwar, Orissa, Assam, Pune, Nagpur, Nashik, Ahmedabad, Surat Vadodara, Chandigarh, Ladakh, Jammu & Kashmir, Haryana, Gurugram, Noida, Varanasi, Kanpur, Lucknow, Bhopal, Indore, Ujjain, Jaipur, Agra, Himachal Pradesh, Andaman & Nicobar, Lakshadweep, Patna, Ranchi
All types of Business Compliances by Business Badhega – India’s Compliance Platform | Bharat Ka Compliances Platform. Pan India Services | Comply India Grow India | Built in India Built for the World
“Unlock Your Business Potential with Producer Co.’s Services! Get Started Today and Watch Your Success Soar!”
Note:- Fee Plus Government Charges addon & as per actual 

Service frequently asked questions

  • A Farmer Producer Company (FPC) is a legal entity formed by primary producers, like farmers, milk producers, fishermen, etc., for the benefit of their agricultural production and post-production activities. It combines the goodness of cooperative societies and private limited companies to provide member benefits and improve income.

  • To incorporate an FPC, a minimum of 10 individual producers, 2 producer institutions, or a combination of 10 such members and institutions is required.

  • The primary objective is to ensure better income for the producers by facilitating better access to quality input, technology, credit, and better marketing avenues. Additionally, it helps in empowering farmer members and enhancing their bargaining power in the market.

  • While FPCs operate on similar lines as private limited companies, they are primarily designed to benefit primary producers. The profits generated by FPCs are distributed among its members, based on their participation, unlike a private limited company where distribution is based on investment.

  • Yes, various central and state government schemes assist FPCs by providing financial support, capacity building, and market linkage, among other things.

  • Yes, an individual member's shareholding cannot exceed 5% of the total share capital of the FPC to ensure equitable distribution and decision-making.

  • Absolutely! An FPC, once registered, can carry out its operations across different states in India without any restrictions.

  • The Board of Directors plays a crucial role in the functioning of the FPC. They are responsible for management decisions, operational strategies, financial planning, and ensuring compliance with various laws and regulations.

  • The incorporation process typically takes anywhere from 30 to 45 days, depending on the completion of necessary documentation and regulatory approvals.

  • Post-incorporation, an FPC needs to maintain proper books of accounts, conduct Annual General Meetings, file annual returns and financial statements with the Registrar, and adhere to other compliance requirements as per the Companies Act.