Agriculture, which employs more than half of India's entire workforce and provides almost 17-18% of the country's GDP, is the backbone of the Indian economy. In 2002, the notion of a "producer company" was established to address the pressing concerns of farmers and agriculturalists, commonly known as producers. This article will explain what a producer company is, how to register, and the advantages of doing so.

A body corporate with the objectives or activities listed in section 581B and registered as a Producer Company under the Companies Act, 1956 is described as a "Producer Company."

Activities Carried On By The Members of a Producer Company

• Preserving, brewing, drying, distilling, canning, vinting, and packaging products are all examples of processing.
• Equipment/machinery manufacturing or sales
• Educating its members and others on the concepts of mutual help
• Providing technical services, consulting services, training, R&D, and other activities in support of its members' interests.
• Power generation, transmission, and distribution, as well as the revitalization of land and water resources, as well as their usage, conservation, and communications related to primary products
• Producers' or their principals produce insurance
• Promoting mutuality and mutual help strategies
• The board may decide on welfare measures or amenities for the benefit of members.
• Other exercises that may in any way enhance the ideals of mutuality and mutual help among the members
• Finance purchasing, processing, marketing, or other operations including the provision of credit or other financial services to its members.

Eligibility Criteria For The Formation and Registration Of A Producer Company

The following criteria must be kept in mind while incorporating a producer company:

 1. A minimum number of ten (10) individual  members will be required to form a producer company, or

2. Two or more producer institutions may also come up to form a producer company, or

3. A combination of the above mentioned may come up for the formation of the producer company.

4. On registration of a producer company, it shall be treated as if it is a private limited company.

5. Under any circumstances a producer company can not become or be deemed to be a public limited company.

6. There should be a minimum of 5 directors (maximum of 15) in a producer company.

7. The company's name must finish with the words "Producer Company Limited.

8. Ownership is restricted to those who are involved in or related to the production of primary products.

Step By Step Process and Documentation Of Producer Company Registration

1. Name Approval

For applying for a name reservation, one has to apply it through the SPICE part A form. Two names can be provided for approval. A payment of Rs. 1000 has to be made as govt fees for applying for name reservation. The terms PRODUCER COMPANY must be at the end of the proposed name.

2. Digital Signature Certificate

The second step is to get all of the subscribers/members to sign a Digital Signature Certificate (DSC). The documents are necessary to receive a DSC:

PAN 

Aadhaar Card of the Director 

Subscriber's ID Card 

Email ID

Contact details

3. Draft The Necessary documents

The Memorandum of Association (MOA) must include all of the objectives that the firm plans to pursue. All of the company's bylaws must be included in the Articles of Association (AOA).

4. Filing Of Application For Registration In SPICE Part B

All of the prospective company's subscribers must sign an affidavit stating their legal capacity to participate as shareholders.

The owner whose address will be utilised as the company's registered office must provide a utility bill and a NOC. A lease agreement will be included if it is not owned. 

5. The Certificate Of Incorporation

After the certificate is issued, the company will become a legal entity, much as a private limited company. It cannot, under any circumstances, become a public limited company.

 Advantages Of Producer Company Registration

The advantages of producer company registration are as follows:-

• Distinct Legal Body

Producer Company has the advantage of being an organisation, which means it is a legal and valid body created by the Companies Act. As a result, a producer organisation has a broad legal boundary within which it can declare property and receive responsibilities. Because a producer company is a separate legal entity, individuals or directors have no duty to the producer entity's lenders.

• Simple Management

They can successfully modify the Board of Management of the producing organisation by recording essential business structures with the Registrar of Companies (ROC). A producer organisation's Board of Management is in charge of overseeing and managing the company's operations.

• Loans and Investments Benefits

The government must provide financial support to these members of the producing companies because they are the original producers and will require money from time to time. As a result, the government established the NABARD bank for the benefit of producer companies and farmers.

The bank's goal is to provide loans to farmers for a period of no more than 6 months in order to suit their demands as producer enterprises.

• Existence indefinitely

A producer body has an 'unending succession,' which can be followed indefinitely until it is legitimately broken down. The takeoffs or demise of any section have no effect on a producer organisation since it is an independent legal entity.

• Good Administration

It is the government's job to consider and maintain the interests of the producer organization's members in order for the organisation to succeed.

• Company Procedure Support

SFAC, NABARD, Departments of Government, Corporate, Domestic, and International Aid Offices all contribute money and committed assistance to the Producer Organisation Promoting Establishment (POPI) in order to help the Producer Organisation advance.

• Assist the Members

By attempting the majority of the workouts documented, a Producer Organisation will assist persons in earning a higher income. The Producer Organisation can buy the items in bulk at a lower price. Furthermore, transportation costs are reduced by delivering in bulk.

The organisation may also provide data to growers, allowing them to keep their goods until market prices skyrocket. All of these interventions will result in a pay raise for the primary producers.

• Better Facilities

A producer organisation is a significant platform for primary farmers to get better services. As a result, these Producer Company employees may easily access government services such as MNREGA, Pension, Loan, PDS, and Scholarships.

Conclusion- 

A producer company registration has several advantages that can be enjoyed by the said organisation. Online legal India provides the service of company registration under the guidance of the CAs/CS. 

The experts have years of experience in their respective domains and have served the people with their desired services. You can get the service of producer company registration at an affordable cost and can enjoy their advantages fully.