Farmer Producer Company | Producer Company Registration 2020-07-23T20:28:10+05:30

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    What is Farmer Producer Company ?

    Producer Company is a company registered under the Companies Act, 2013, which has the objective of production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit. Produce are things that have been produced or grown, especially by farming. Therefore, a Producer Company deals primarily with agriculture and post harvest processing activities.

    At Registration Arena, we are continuously available to help you understand how to register a producer company.Producer Company Registration in India can be done through Registration Arena in all major cities including Hyderabad, Mumbai, and New Delhi, Chennai, Kolkata & all other Indian cities.

    Allowed Activities for Farmer Producer Company :

    A producer company is basically a body corporate registered as Producer Company under Companies Act, 2013 and shall carry on or relate to any of following activities classified broadly:-
    (a) Production, harvesting, processing, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit.
    (b) Rendering technical services, consultancy services, training, education, research and development and all other activities for the promotion of the interests of its Members;
    (c) Generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce;
    (d) Promoting mutual assistance, welfare measures, financial services, insurance of producers or their primary produce;

    Silent Condition for Farmer Producer Companies:

    i. Only persons engaged in an activity connected with, or related to, primary produce can participate in the ownership.
    ii. The members have necessarily to be primary producers.
    iii. Termed as “Companies with Limited Liability” and the liability of the members will be limited to the amount, if any, unpaid on the shares.
    iv. Name of the company shall end with the words “Producer Company Limited“.
    v. On registration, the producer company shall become as if it is a Private Limited Company for the purpose of application of law and administration of the company
    vi. However, it shall comply with the specific provisions of part IXA.
    vii. The limit of maximum number of members is not applicable to these Companies.

    Refer to our article on the benefits of Producer Company to further educate yourself.

    More about Farmer Producer Company Registration

    Producer Company Registration

    Any of the following combination of producers can incorporate a producer company:
    i. Ten or more producers (individuals); or
    ii. Two or more producer institutions; or
    iii. Combination of the above two (10+2).
    Share Capital:
    i. Share capital of a Producer Company shall consist of equity shares only.
    ii. Members’ equity cannot be publicly traded but only transferred
    iii. Voting
    a. Only of individuals, then voting rights shall be based on a single vote for every member.
    b. Only of producer institutions, then voting rights on the basis of their participation.
    c. Combination of both individuals and producer institutions then voting rights shall be based on a single vote for every member.
    Every producer company is to have
    i. At least 5 and not more than 15 directors.
    ii. A full time chief executive should (CEO) be appointed by the board and
    iii. shall be entrusted with substantial powers of management as the board may determine.

    Advantages Of Farmer Producer Company Registration

    • Preferred by banks, VCs & investors
    • Separate legal entity which limits your liability
    • Owning Property
    • Easy to register, manage & run
    • Easy to dissolve or wind-up
    • Perpetual Existance

    Minimum Requirements For Farmer Producer Company Registration

    Minimum 10 Shareholders
    Minimum 5 Directors are required
    Atleast one Director should be an Indian Resident
    Minimum 5,00,000 Share Capital
    DIN & DSC’s for 5 the Directors

    Procedure For Farmer Producer Company Registration

    Documents Required For Producer  Company Registration

    Identity and Address Proof:
    Identity and the address proof will be needed for all the directors and the shareholders of the company to be incorporated. In case of an Indian national, PAN card is mandatory. For the foreign nationals, apostilled or notarised copy of the passport has to be submitted mandatorily. All documents submitted should be valid. The residence proof documents like the bank statement or the electricity bill must be less than 2 months old.

    Registered Office Proof:
    All companies should have a registered office in India. To prove admittance to the registered office, a recent copy of electricity bill or gas bill or water bill or telephone bill must be submitted. Along with the rental agreement, utility bill or the sale deed and a letter from the landlord with her/ his consent to use the office as a registered office of the company should be submitted.

    List of documents to be submitted by the Director and the Shareholders:
    Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
    Scanned copy of Voter’s ID/Passport/Driver’s License
    Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
    Scanned passport-sized photograph
    Specimen signature (blank document with signature [directors only])
    Note: Any one of the directors must self-attest the first three documents. In case of foreign nationals and NRIs, all the documents must be notarised (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).

    For the Registered Office:
    Scanned copy of Latest Telephone or Electricity or Gas Bill or Water bill
    Scanned copy of Notarized Rental Agreement in English
    Scanned copy of No-objection Certificate from property owner
    Scanned copy of Sale Deed/Property Deed in English (in case of owned property)
    Note: Your registered office need not be a commercial space; it can be your residence, too.

    What are factors one should consider in selecting the company name

    The name of the company is very important. It is considered the first impression for the suppliers, buyers and the stakeholders. It must, therefore, be suggestive, relevant and attractive. There are various factors that one must keep in mind while naming the company.

    It must be short & simple:
    The name must be concise and not be too long. People should be able to say it easily and they should be able to recollect your company’s name the first time they read it or hear it.

    It must be meaningful:
    The name of the company should be related to the business. It must fit the company’s branding.

    It must be unique:
    The name of the company mustn’t be the same or identical to an already existing company or a trademark. One must preferably avoid the plural version.

    Add Suffix:
    The name of the company must end with the suffix “Private Ltd” in a case of a Private limited company and “LLP” in case of a limited liability partnership.

    It shouldn’t be illegal / offensive:
    The name of the company shouldn’t be against the law. It shouldn’t be abusive or against customs and the beliefs of any religion.


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