A Producer Company is a specially designed entity for farmer producer organisations (FPOs) that aims to enhance the livelihoods of its members while empowering the agricultural sector. By combining the benefits of private limited companies with the cooperative principles inherent in FPOs, a Producer Company enables farmers or agriculturists to work collectively, boost income, and access financial support.
At Mytaxwala, we provide end-to-end services to register your Producer Company in India quickly and efficiently. Our expert team guides you through every step—from document preparation to final incorporation—ensuring that your organization complies with the Companies Act, 2013 and other regulatory requirements.
A Producer Company, sometimes referred to as a Farmer Producer Company (FPC), is a legal entity registered under the Companies Act, 2013. It is designed for groups of farmers or agricultural producers who want to improve their economic status, achieve better market access, and enhance the quality of their produce. Key features include:
● Hybrid Structure: Combines elements of private limited companies and cooperatives.
● Member-Driven: Owned and managed exclusively by primary producers, ensuring decisions remain focused on member welfare.
● Limited Liability: Members’ liability is restricted to their contribution, thus protecting personal assets.
● Democratic Governance: Every member gets an equal say in decision-making, regardless of the size of their shareholding.
● Focused Objectives: The company’s primary purpose is to facilitate production, marketing, value addition, and other activities related to its members’ agricultural produce.
The core objective of a Producer Company is to promote the interests of its members by supporting activities such as:
● Agricultural Production and Marketing: Facilitating improved production techniques, procurement, grading, handling, and marketing of primary agricultural produce.
● Processing and Value Addition: Engaging in processing activities like preservation, packaging, and other value-added processes.
● Supply of Inputs: Marketing or supplying machinery, equipment, and essential consumables to its members.
● Training and Consultancy: Providing education, technical assistance, and consultancy to promote best practices in agriculture.
● Financial Support: Extending credit facilities and financial services, and assisting in accessing subsidies or grants.
● Resource Management: Involving in sustainable management of land, water, and other essential agricultural resources.
● Ancillary and Support Activities: Engaging in any supportive activities that further the overall objectives of member welfare and sustainable production.
Governing Legislation:
Producer Companies are registered under the Companies Act, 2013, and must adhere to the guidelines set forth in Section 465 and related provisions. The objectives of the company must align with the promotion of agricultural production, marketing, and allied activities.
Eligibility Criteria:
● Membership: A minimum of 10 primary producers is required to form a Producer Company.
● Objectives: The company’s objectives must solely focus on promoting agricultural production, marketing of members’ produce, and other related welfare activities.
● Capital Requirements:
○ Authorized Share Capital: A minimum of Rs. 5 lakh is required.
○ Paid-up Capital: The company must have a minimum paid-up capital of Rs. 1 lakh.
● Shareholder Structure: Only primary producers or entities directly involved in primary production can be members. External government or private equity investments are not permitted to ensure member control.
● Governance: The company must have a democratically elected Board of Directors, with a minimum of 5 directors, serving terms as prescribed by the Act.
Mytaxwala’s streamlined approach to Producer Company registration ensures you navigate the entire process effortlessly. Here’s a step-by-step guide:
○ Memorandum of Association (MoA):
Clearly state your objectives (focusing on production, marketing, or related activities) along with details of authorized and paid-up capital.
○ Articles of Association (AoA):
Outline internal rules and the governance structure.
○ Other Forms:
Complete Form DIR-12 (director details), and any additional affidavits or agreements as required.
After registration, Producer Companies must adhere to ongoing regulatory requirements:
● Audit and Reporting:
Conduct annual audits and file financial statements with the RoC.
● Annual General Meetings (AGM):
Hold regular board and general meetings as mandated.
● Statutory Reserve:
Maintain a statutory reserve from net profits until it equals the paid-up share capital.
● Other Compliances:
Follow guidelines related to taxation, shareholding, and operational transparency to ensure sustainable business practices.
● Expertise:
Our team of professionals specializes in agricultural and non-profit company registration, guiding you through each step of the process.
● Cost-Effective:
We offer competitively priced registration services with transparent fees.
● Streamlined Process:
Our online platform makes document submission and status tracking simple and efficient.
● Post-Incorporation Support:
Beyond registration, we provide assistance with compliance management, annual filings, and other statutory requirements.
● Empowering Agriculture:
We are committed to supporting the growth and sustainability of farmer producer organisations, empowering primary producers to enhance their incomes and livelihoods.
Ready to transform your agricultural venture? Contact Mytaxwala today to begin your Producer Company registration journey and unlock the potential of collective growth and sustainable agriculture. Our dedicated team is here to help you every step of the way.