Introduction
Any individual involved in a nearer industry to the primary production is referred to as a producer. Thus, “Producer Company” serves as a catch-all for everything which is given below:
Producing, gathering, purchasing, sorting, managing, promoting, reselling, selling membership of the local producers, or importing goods and services.
Farmer Producer Company
A Farmer Producer Company can be formed by any 10 or more primary producers or by two or more institutions of producers, or by a contribution of both of them. A Farmer Produce Company means a hybrid between cooperative societies and private limited companies. Under the Indian Companies Act, 2013, must be registered the Farmer Producer Companies in which have democratic governance, and each producer or member has equal voting rights notwithstanding the number of holding shares.
Aims of Producer Company
The main aim of the producer company is the output of its members. It may occupy any of the actions above on behalf of the committee, directly or indirectly, or through a third party.
The main objective of the farmer produce company involves processing like; sterilizing, bottling, curing, boiling, pouring outing, and packing the produce of its members.
Produce, sell, and supply technology or supplies primarily to its member and teach its representatives and other members about the mutual aid concept.
To provide all services essential to further the interests of its members, including technical assistance, consulting, and training.
Initiatives that advance the interests of its members.
Power generation, transmission, and distribution are related to prime production are regenerating the water and land assets through communication and perpetuation.
The main aim of the Farmer Producing company is to promote cooperation and support practices, and farmer insurance.
Funding purchasing, handling, or other actions in which including widening credit facilities or other banking sectors to its representatives.
Establishment of the Farmer Producer Company
Under the Companies Act of 1956, the producer company may be founded by 2 or more organizations, 10 or more persons, or a mix of both. There is no maximum number of groups of participants. Acquisition, manufacturing, processing, distributing, exporting of the product, or importing goods and services, etc. for the good of the people should be among the aim of creating a supplier company.
The producer firm supports the transformation of unions into corporations and that helps the development of cooperatives as corporations. The idea of a farmer through cooperation and coordinated efforts, the Producer Company has a main goal to improve the situation of farmers who have suffered financial injustice in India.
These organizations strive to carry out their main aim which frequently centers on the mutual member of financial gain.
The goal of the Farmer Producer Industry:
The producer company is primarily endorsed to carry out any of the measures on behalf of a group, either directly or through other organizations which are as follows:
Import goods and services that meet the requirements of representatives; or
Sourcing, production, managing, advertising, trying to sell, transfer of the commodity, etc.
Processing member-produced food like; canning, distillation, brewing, and repackaging of food.
Educating its users and others following concepts of mutual benefit.
Determined by technical assistance, consulting, training, and other services to further the interests of its members.
Provided Insurance for growers of fresh vegetables.
The promotion of admiring and helpful approaches.
Member-benefitting welfare initiatives.
Any additional activity that is related to or circumstantial to the goals above.
Supporting all activities includes providing financing options, or improving the financial situations of the member.
Members of the Farmer Producer Company and Their Position in a Company:
Only primary producers or organizations of producers can become members of the Farmer Producer Company.
Membership is obtained by purchase of shares in a Farmer Producer Company
In a Farmer Producer Company act or work done by its members only.
The Farmer Producer Company was created by its members.
These companies also wind up by their members only.
Farmer Produce Company’s members act through their General Meetings.
Minimum Share Capital for a Farmer Producer Company
The Farmer Producer Company has a minimum authorized capital is Rs.5Lakh.
The Authorized Capital of the Farmer Producer Company can be more than Rs.5Lakh which is mentioned in the Memorandum of Association.
The authorized share capital should be sufficient for carrying out the main objects or goal that is
mentioned in the memorandum.
The authorized share capital should be feasible.
The Framer Producer Company has a minimum paid-up capital is Rs. 1Lakh.
Advantages of the Farmer Producer Company
The potential benefit which is provided by The Farmer Producer Company in India is as follows:
1. Acceptance of Deposit:
The Producer Company in which allowed receiving a payment in a particular deposit manner or a recurring deposit under the current law.
2. A Loan Secured by Security:
The Farmer Producer Corporations may work as lending institutions. They can borrow money using term deposits, investments, and government-issued assets as collateral.
3. Distribution of Profits to Members:
The farmer producer company keeps its revenue or profit and distributes it among the working members of the group or our company.
4. There are No Taxes on Farm Income:
As a result, the overall earnings of the Producers are not subject to taxes. These organizations are currently free from any tax process that is scheduled by the Income Tax department.
5. Loan Program for Members:
Technically, Farmer Producer Corporations may provide credit to the source members.
Documents Required for the Farmer Producer Company
There are some documents required for forming the Farmer Producer Companies in India which are as follows:
PAN Card and photos of the current directors and shareholders of the company
Aadhar cards, driving licenses, passports, and voter IDs are acceptable forms of id proof for directors, employees, and investors.
Producer Proof
Sarpanch letter or Khasra – Khatuni or Income Tax Return with Farm Income or Any other evidence of a member as a working person
Registered Home evidence
NOC from the proprietor, Proof of residence, and if the property is rented then submit the Rental agreement.
Pre-incorporation legal requirements for formation
The company should be registered with at least 10 suppliers in the Farm Produce Company in India.
In India, if the suggested organization is willing to operate as a private limited company then it must have a minimum of 5 or a maximum of 15 managers and 200 people.
For one year following the formation of a farmer company then an international cooperation society operating work as a farmer, the farming company will have more than 15 Members in the company.
Registration of a Farmer Producer Company in India
The suggested member should submit an online form in the e-form Spice+ on the Registration page to start the formation procedure of the company in India. After logging in, the candidate can download the form which is given on the MCA portal for a maintenance agreement.
The Spice+ e-form is divided into two key components which serve as an online process for registering a company under the Company Act of 1956 in India.
Parts A and B
The petitioner can legalize the chosen name in Part A, and the following services are given in Part B:
Registration, allocation of a Director Identification Number, and allocation of a PAN.
It is establishing a bank account, EPFO filing, ESIC register, professional tax register, and Tax Account Number allocation.
Conclusion
It concluded that Under the Companies Act of 1956, the producer company may be founded by 2 or more organizations, 10 or more persons, or a mix of both. The producer firm supports the transformation of unions into corporations and that helps the development of cooperatives as corporations. The idea of a farmer through cooperation and coordinated efforts, the Producer Company has a main goal to improve the situation of farmers who have suffered financial injustice in India. Acquisition, manufacturing, processing, distributing, exporting of the product, or importing goods and services, etc. for the good of the people should be among the aim of creating a supplier company. Farmer Producing Company is to promote cooperation and support practices, and farmer insurance.
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