Startup

Overview

A Producer Company is a special corporate structure under the Companies Act, 2013, designed for farmers, producers, and agricultural entrepreneurs. It empowers primary producers by collectively organizing them for better market access, value addition, and profitability. A Producer Company operates with the intent to benefit its members, ensuring fair pricing, reduced intermediaries, and enhanced business opportunities.

Advantages

• Collective Growth: Promotes shared resources and collective decision-making for producers.
• Limited Liability: Members’ personal assets are safeguarded against business risks.
• Separate Legal Entity: Independent operations with perpetual succession.
• Tax Benefits: Eligible for specific exemptions on agricultural income.
• Market Access: Direct linkage to buyers and value chain integration.

How Fibils Helps

• End-to-End Registration: Assistance in registering your Producer Company with the MCA.
• Customized Solutions: Help in drafting MOA and AOA tailored to agricultural or production needs.
• Regulatory Compliance: Support with PAN, GST, and other required registrations.
• Operational Setup: Advisory for legal, financial, and market linkage strategies.

Eligibility Criteria

• Minimum 10 individual producers or 2 producer institutions.
• Activities must revolve around farming, production, or allied sectors.
• Must have a registered office in India.
• Minimum paid-up capital as prescribed by law.

Documents Required

• PAN and Aadhaar cards of all directors and members.
• Proof of producer activity (e.g., land ownership documents, production records).
• Business address proof (utility bill, rent agreement, or property papers).
• Digital Signature Certificates (DSC) for all directors.
• Passport-sized photographs of directors.

Process

• Reserve a unique company name via the MCA portal.
• Draft and submit MOA and AOA with the objectives focused on producer activities.
• File incorporation forms with the Registrar of Companies (ROC).
• Obtain the Certificate of Incorporation.
• Apply for necessary registrations like PAN, TAN, and GST.

Features

• Operates as a separate legal entity to benefit its producer members.
• Members can earn through dividends and bonuses.
• Focused on enhancing member productivity and profitability.
• Can engage in production, procurement, marketing, and distribution of produce.

Types

• Horticulture Producer Company: Focused on fruits, vegetables, and plant produce.
• Dairy Producer Company: Engaged in milk production and allied activities.
• Fishery Producer Company: Focused on fish farming and seafood production.
• Multipurpose Producer Company: Handles multiple agricultural activities.

FAQs
Q1: Can a Producer Company deal in non-agricultural products?
A: No, the primary focus of a Producer Company must remain on agricultural and allied activities.

Q2: Are tax benefits available to a Producer Company?
A: Yes, certain income from agricultural activities is tax-exempt.

Q3: How are profits shared in a Producer Company?
A: Profits are distributed as dividends and bonuses to its members based on their contribution.

Q4: Is there a requirement for regular audits?
A: Yes, Producer Companies must undergo statutory audits and comply with MCA filings.

Unite your production resources and thrive with a Producer Company. Fibils ensures hassle-free registration and comprehensive compliance for sustainable growth.