Indian economy majorly depends on agriculture, during the year 2002, the government of India introduced a business concept called Producer Company with the main objective as to facilitate the formation of co-operative business as companies. Producer companies can help small formers to participate in emerging-high value markets such as export market and the retail markets in India. The Producer Company is one of the business entity registered under the Companies Act, 2013.
Any ten or more individuals, each of them being a producer or any two or more Producer Institutions or a combination of ten or more individuals and Producer Institutions can form a Producer Company under the Companies Act, 2013. Producer Company Registration is regulated by the Central Registration Center (CRC), Manesar, Haryana on behalf of each state jurisdictional Registrar of Companies, Ministry of Corporate Affairs, Government of India. The governing law for the producer companies is Companies Act, 2013. The name of the producer company should be ended with "Producer Company Limited". Every producer company shall have at least five directors and not more than fifteen directors.
The Government of India had announced on 26th January, 2018 that there is zero incorporation fee for the Companies registered with an Authorized Share Capital up to of Rs. 1,000,000/- (Rupees Ten Lakhs), subsequently it had been increased to Rs. 15 lakhs. The remaining fee such as Name Availability, Stamp Duty, Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) is applicable as usual.
The Farmer Producer Company (FPC) registration in India is entirely online. If you’re looking to make your producer company registered, then CompaniesHouse is the team for you. Register your producer company online with us today and you’ll be on your way to operating a registered company under 1 week.
|Authorised Share Capital
|Paidup Share Capital
(1) Identify a cluster where the Producer Company can be formed.
(2) Baseline and Feasibility Studies to ensure that a viable Producer Company can be formed in the cluster. Plan for business activities that are possible to improve the incomes.
(3) The primary producers or Farmers and introduce the concept of Producer Company to them.
(4) Explore the need for a Producer Company with the primary producers. The primary producers should understand the benefits and feel the need for it.
(5) Create a critical group of primary producers, who are very enthusiastic about the idea of Producer Company and empower them further with the concept and details and benefits of a producer company.
(6) Allow enough time to the prospective primary Producer Company members to understand the idea. Make frequent visits to them and clarify all their doubts. The objective should be that the prospective members have right understanding, and willing to participate and work together for their mutual benefit.
(7) Once the primary producers are willing to form a Producer Company and are ready to contribute to the share capital, Identify the Promoter Directors and collect their KEY Documents and approach CompaniesHouse.
Producer Company registratoin in India is entirely online. To register a Producer Company, the Shareholders of the Company have to sign documents digitally using Class-III Digital Signature Certificate (DSC). We will apply Class-III DSCs through eMudhra or other Digital Signature Certificate provider Online. We will attest and submit your documents with eMudhra or other Digital Signature Certificate provider and get your DSCs approved and download the same for signing purpose. Apart from Shareholders, a practicing professional such as Company Secretary or Chartered Accountant has to mandatorily digitally sign and attest the documents to get your Producer Company Incorporated. We also get this done with our associated CA/CS professionals.
Once the DSCs are approved, we will then draft the By-Laws and Articles of the Producer Company and prepare the Producer Company Incorporation documents (ie. eSpice+ PartB, eSpice MOA, eSpice AOA, Form DIR-2, Form INC-9, eAGILE Form, Directors KYC documents, NOC and other declarations as may be required) and once you give confirmation from your end to upload with the MCA, we will do that by paying requisite challan amount online.
Once we upload and pay the incorporation challan amount to MCA, the Registrar of Companies will go through your application and after due scrutiny, approves the same and issues you the Certificate of Incorporation online through your registered email address.
|Certificate of Incorporation (CIN)
|Memorandum of Association (MOA)
|Articles of Association (AOA)
|Company PAN & TAN
|Digital Signature Certificates (DSC)
|Director Identification Numbers (DIN)
|GST Registration (GSTIN)
|MSME Registration (UDYAM)
|Shops & Establishment Registration**
* PT Registration is available in the states of Maharashtra, Karnataka & West Bengal only
** Shops & Establishment Registration is available in the state of Delhi only
Now, the Ministry of Corporate Affairs (MCA) is giving automatic Company Bank Account along with the Certificate of Incorporation in any one of the following banks (ie. Punjab National Bank, ICICI Bank, Kotak Mahindra Bank, Bank of Baroda, HDFC Bank, State Bank of India, Union Bank of India, IndusInd Bank or Axis Bank). You have to select any one of the bank as listed and this is mandatory. If you do not wish to open bank accounts in eigther of these banks, you can open your bank account separately once you get the Certificate of Registration and other incorporation documents such as MOA, AOA and Company PAN. No amount is required to get the bank account opened in these banks. Once you get all documents, you can then submit KYC with the bank and deposit the Sharecapital amount.
The Company PAN & TAN will also be generated simultaneously along with the Certificate of Incorporation. You are not required to apply for it separately. You will only get password protected ePAN & eTAN at the time of Company Incorporation and if you want physcal PAN & TAN, again you need to separately apply for it by paying the applicatiton fee at PAN application center or online. This ePAN & eTAN are sufficient to get other supporing licenses and run your business. The password to open ePAN is the date of registration and the PIN code of the Company Registered office for eTAN.
Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees*:
Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees**.
* This limit is increased to Rs. 40 Lakhs w.e.f 1st April 2019 for all states except the State of Telangana. Special category states ie. Jammu and Kashmir, Ladakh and Assam also opted Rs.40 lakhs limit.
** This limit is increased to Rs. 20 Lakhs w.e.f 1st April 2019 for Special Category States.
We help registering your business under GST by making application online subsequent to the business formation. This GST Registration in India is online and subject to approval with the GST Officer. Normally, with in 4 to 5 days, you will get your GSTIN and some times it may be delayed due to various reasons.
If the Proucer Company manufactures fertilizers, then it has to make an application for seeking the Fertilizer License before Controller of Fertilizers, Ministry of Chemicals.
To get the Quality Standard Certification for an agricultural produce or product, the company has to make an application for granting AGMARK Cetification before the Office of the Directorate of Marketing and Inspection (DMI). They can file application online at www.dmi.gov.in.
A Farmer Producer Company is required to get SPICE BOARD Certification to export the Spices.
If your business deals in Food, Food Items you need to apply for Food License with Food Safety and Standards Authority of India.
Import Export Code (IEC) is required to be taken if you deal in Import or Export of Goods of Services.
Professional Tax is Mandatory for the Companies registered in India. For all states it is not mandatory and infact only for 17 states it is mandatory.
Shops & Establishments registration is mandatory to register with the concerned State Labour Department.
To avail the benefits under The Ministry of Micro, Small & Medium Enterprenuers Act, it is mandatory to get registered under this Act.
Once you register your Producer Company, you need to file certatain periodic documents with the Registrar of Companies, GST department, Income Tax Department and Other Statutory Department online by paying requisite fee. Apart from filing documents, you need to maintain certain records, registers and maintain books of accounts. You need to prepare the Producer Company financials such as Profit & Loss Account, Balance Sheet, Shedules to Accounts, Notes to Accounts, Directors Report etc. You also need to prepare resolutions and minutes of meetings of the board of directors and members of the Company. Our team of experts will assist you in getting all these compliances done at an affordable cost.
Our team of experienced Chartered Accountants & Company Secretaries will help you get funds to run your business by preparing project reports, business plans, term sheets & Share Purshase Agreements etc. We also help you pay less tax to the government through a proper tax planning.
The liability of the members of the Company is limited. The Directors or Shareholders are not personally liable for the debts of the Company. For example, when Company is in default of repayment of debt or loan, there is a protection to the personal assets of the Directors or Shareholders. They can recover the loan amount only by selling the assets of the Company.
SFAC operates a Credit Guarantee Fund to mitigate credit risks of financial institutions which lend to the Farmers Producer Companies without collateral. This helps the FPCs to access credit from mainstream financial institutions for establishing and operating businesses.
SFAC provides matching equity grant up to Rs. 10 lakh to the FPCs to enhance borrowing power, and thus enables the entities to access bank finance.
NABARD set up 50 crore Producer Organisation Develop Fund (PODF) for the development of the Producer Companies in India. This fund will support the producer companies by providing credit support, improving marketing capacity and infrastructure facilities in the floowing ways:
NABARD also provides technical, managerial and financial support for hand-holding, capacity building and market intervention efforts of the Producer Companies. Such support is available in the form of grant, loans, or a combination of the two based on the need of the situation, and is available only to those Producer Organisations which avail credit from NABARD. Capacity building support will not be given in isolation in general. It would essentially be a part of the overall project having loan component. Grant, if any, will be maximum 20% of the loan amount. Capacity building should broadly cover any activity relating to functioning of a producer organization.
Government of India provides budgetary support to Small Farmers Agribusiness Consortium (SFAC) for its Equity Grant and Credit Guarantee Fund Scheme for the Farmer Producer Company. For creation of storage and other agricultural marketing infrastructure under the Integrated Scheme for Agricultural Marketing (Ministry of Agriculture, Government of India), Farmer Producer Companies are eligible to get higher subsidies. Ministry of Rural Development also operates schemes through which support for some activities can be obtained by the Farmer Producer Companies. Training institutions supported by the Ministry or Rural Development, Government of India also impart skill and capacity building training which can be made use of by the Producer Companiesfor its members.
Indian farmers know how to produce the primary agricultural produce but they fail in how to market it. In producer company, the farmer members may appoint experienced personnel in marketing as Directors and market their products at higher rates thereby they get more revenue. So each member will get benefited by having experienced marketing support personnel.
The Income Tax Act, 1961, specifically exempts tax on agricultural income under Section 10(1). However, the exemption for such agricultural income shall sometimes vary depending upon the kind of agricultural activity carried on. It is to be noted that though the IT Act does not per-se give any special benefits or exemptions to Producer Companies as such, but depending upon the kind of agricultural activity it carries on, certain tax benefits can be availed.
Dividend tax at the applicable rates is required to be paid by the Company at the time of patronage bonus, limited return distribution and the same will be tax free in the hands of the members. Bonus shares will not attract any tax in the hands of the members at the time of allotment, however at the time of sale or redemption necessary provision of capital gain tax shall apply.
As an Official Company Registration Agent, we have built strong ties with the Ministry of Corporate Affairs, Govt of India since our own formation. Since we began, our goal has been to provide a seamless incorporation process that is quick and simple to use. Today, our company registration system is one of the most effective and efficient in India. In just over 5 minutes you can submit your new company name application, and often in just 3-5 days, your company will be fully registered. We also keep our company formation pricing competitive, while always exploring innovative ways to provide value to our customers. We are pleased to be one of the most affordable ways to start a company in India.
We have the expertise to advise which is the correct corporate structure they need to put in place. Most customers come to us for help registering a company limited by shares. The limited company structure is popular as it allows profits to be distributed amongst the shareholders while at the same time protecting them through the limited liability aspect. Our team has well over 20-years of combined expertise forming companies and providing corporate and secretarial services that help thousands of our clients grow their businesses each year.
We are incredibly passionate about the quality of our service, and we are incredibly proud of our customer feedback, as shown by our excellent reviews and ratings. Time and time again, we are selected for the value and expertise that our team is known for. We have helped shape the industry by providing innovative business services and bundled packages that have evolved alongside the needs of our customers.
Our clients have access to free support from an expert team. We are always on standby to help. If you need assistance at any point before, during, and after the registration of your company, you will be able to reach us by telephone or email.
We believe in clear and transparent pricing. The price advertised is the price you pay. There are no additional costs to register your business.
In just over 5 minutes you can submit your new company name application, and often in just 3-5 days, your company will be fully registered.
We are experts in our field, our team has over 20 years of experience. Take the hassle out of setting up your business, rest assured that you are backed with the support you need to succeed.
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The whole process, from ordering to using your company registration license, is made as simple and easy as possible to help you build your business.
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DIN stands for Director Identification Number. Every Director of the company will get this unique Director Identification Number subsequent upon the Company Incorporation. With this DIN, he/she can register any number of companies.
A DIN holder has to file his KYC with MCA every year on or before 30th day of September otherwise a penalty of Rs. 5000/- will be imposed.
DSC stands for Digital Signature Certificate. Class-III Digital Signature Certificate is required for each Shareholder while registering his/her company.
There are different companies who issue Class-III DSCs. These companies are called DSC Certifying Authorities. We have associated with eMudhra Tamil Nadu. eMudhra is one of the largest Digital Signature Certifying Authority in India.
An authorized share capital is a share capital amount upto which the shareholders can invest in equity of the company.infact, this the permission limit to invest amount into Equity Sharecapital.
Paid up share capital is an amount, which is deposited by the shareholders of the compnay in company's bank account towards share capital.
Now the company can be registed with a minimum amount of share capital of Rs. 2/- ie. Rs.1/- investment by each shareholder.
A CIN is a company identificaton number, which is generated by the Ministry of Corporate Affairs while generating the Certificate of Incorporation.
We can treat it as the company registration number.
If we apply direct incorporation without applying for Certificate of Name Availability, it may take 3 to 5 working days. Some times, it may be incorporated even in one day.
But it is advisable to apply first company name and then incorporation and in this case it may take 10 to 15 days.
For one lakh authorised share capital company, the total government fee including Digital Signature Certificates would be approximately Rs. 4,000/-.
CompaniesHouse is authorised by the Ministry of Corporate Affairs to provide company registration service throughout India at an affordable cost of Rs. 1,999/-.
Yes, you can start a Company from your home address too.
No, you can not register Company on your own as Professionals like Company Secretary/Chartered Accountant has to sign digitally along with a Director on the application forms, then only your Companay will be registered.
Rs. 5 Lakhs.
Minimum of five directors are required to register a Producer Company.
Minimum of fifteen directors are eligible to register a Producer Company.
Any ten or more individuals each of them being a producer Or any two or more Producer Institutions Or Combination of 10 or more individuals and Producer Institutions are requited to register a Producer Company.
Yes. Ex - produce of persons engaged in handloom, handicraft.