Are you a farmer and want to expand your farming business to another level by becoming a farmer producer company? This Article is for you who want to know about the checklist for farmer producer companies
The Ministry of Agriculture’s Department of Agriculture and Cooperation has identified farmer producer organizations as the most appropriate institutional form for mobilizing farmers and building their capacity to collectively leverage their production and marketing strength. In this article, you will get a checklist for farmer producer company.
What is a Production Company as per the Companies Act, 1956?
According to Section 581 B of the Companies Act, 1956, a producer company is a company incorporated under the Companies Act, 1956 that has the joint goals of agriculture production, post-harvesting processing activities, import and export of goods, procurement, selling and distribution, initial production of the individual members potential to earn extra earnings.
A producer company is a group of 10 or more persons and two institutions that work together to handle agricultural and post-harvesting processing tasks. Simply said, it is a group of farmers who band together to enhance their living conditions and revenue.
Steps to Register a Farmer Producer Company
Get DSC and DIN numbers for all directors and shareholders:
The first stage in obtaining Farmer producer company registration of the company is to obtain digital signature copies for all of the company’s directors or shareholders to sign electronic documents. Following that, you must receive a DIN, or Directors Identification Number, to proceed with the process. You no longer need to file a separate form if you apply for DIN together with the SPICE Form.
Application for company name approval:
After obtaining the DSC and DIN, you must now apply to the registrar of offices to have your company’s name approved. To do so, you must apply in the appropriate format and pay the Reserve Unique Name (RUN) charge. Following the submission of the application, the registrar will verify the originality of the name and authorise it on that basis.
Fill out an application for incorporation:
You are now at the final step of submitting your certificate of incorporation application. An incorporation application is filed with the appropriate Registrar of Companies in SPICE form, including the necessary documents such as the Memorandum of Association, Articles of Association, affidavit, and declaration.
Drafting of MOA & AOA
The drafting of the Memorandum of Association (MOA) and Articles of Association (AOA) is usually done after the registrar has made the name available. Major items must correspond to Spice. These documents are essentially the Company’s charter and internal rules and regulations. The Directors/Promoters draught the MOA and AOA with the assistance of a professional.
Because there are at least ten subscribers, the Producer company’s MOA and AOA must always be physical, and the production company’s MOA and AOA shall never be in electronic mode. Following the proper submission of the SPICE form, the applicant must proceed with the drafting/preparation of information in INC-33 (MOA) and INC-34 (AOA).
Details need to be filled in AGILE PRO, including GST, Bank details, etc.
After filing the spice form correctly, the next task for the applicant is to fill the agile pro form from the dashboard.
What documents are required for the registration of the farmer producer company?
- All directors and shareholders must have a PAN card, a passport, or an election ID card.
- The most recent bank statement
- All directors and shareholders must show their voters ID/license/passport
- All directors and shareholders must have passport-sized pictures
- A copy of any utility bill as evidence of residence
- In the event of a property on rent or lease, a scanned copy of the rental agreement and a NOC from the owner are required
- A copy of the property papers in the case of owned property.
Things to be kept in mind before going for registration
- A minimum of five directors and ten members are required
- A producer business must have a minimum paid-up capital of ₹5 lakhs
- There is no specific prescribed maximum number of members; hence, the company can have unlimited members
- The Producer Firm cannot be deemed a public company in India
- The previous production business is only permitted to have equity share capital
- Every year, at least four board meetings must be held; these meetings cannot be held less than once every three months
Conclusion
After reading this article, readers get a very clear picture of what a producer company is and what type of activities it has been dealing with. Further, there is step-by-step guidance provided whether how to register a producer company. There are some of the questions answered, including whether registration is required to be done for a farmer producer company or not. In the end, a list of documents has been provided which are essential and are required during the registration of a company. This write-up also includes some of the tips to be kept in mind before going for registration of the company.
FAQs
Does a proper designated office to be required for beginning with a producer company?
No, a producer company can be started from any place, including any residential or agricultural premises, which must be communicable and registered in India.
How much time is to be taken to receive a producer company incorporation certificate?
It nearly takes around seven days after fulfilling all necessary formalities and procedures from the ROC office.
How many DIN can be entered into the SPICE Form?
A maximum of three (three) DIN can be used through the SPICE form. If the applicant wishes to incorporate a company with more than three directors and more than three people who do not have a DIN. In this case, the applicant must incorporate the company with three directors and nominate new directors after incorporation.
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