What is the Farmer Producer Company?
Farmer Producer Company Registration is a company registered under the Companies Act, 1956. The company can be registered in India by a farmer or a group of farmers under the provisions of Section 25(1) of the Companies Act, 1956. The main objective of Farmer Producer Company Registration is to make farmers self-reliant. Therefore, this Act provides for the creation of a Farmer Producer Company (FPC).
Table of Contents
- What is the Farmer Producer Company?
- Objectives of Farmer Producer Company Registration
- Formation of Producer Company and its Registration
- Basic Requirements for Incorporation
- Documents required for Farmer Producer Company incorporation
- Memorandum of Association (MOA)
- Annual Compliance for Farmer Producer Company
- Important information for Members and directors of Farmer Producer Company
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Its main activities under the farmer producer company:
- Consist of 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.
- Mutual help, financial services, welfare measures, and insurance for producers or their principal produce are also part of it.
Objectives of Farmer Producer Company Registration
The objectives of a Farmer Producer Company are to reduce the cost of farm inputs, increase productivity and provide income security to farmers. Farmers have been traditionally engaged in subsistence farming and have had no access to credit or markets. This has led them to depend on middlemen who buy their produce at very low prices and sell them at higher prices. The main objective of Farmer Producer Companies is to help farmers become self-sustaining by providing them with opportunities for better returns on their produce.
The more important of these are:
- Harvesting, production, procurement, pooling, handling, grading, selling, marketing export of primary produce of members or import of goods or services for their benefit.
- Processing including preserving, drying, distilling, brewing, venting, canning, and packaging of the produce of its members;
- Rendering technical services, training, education, consultancy services, research and development, and all other activities for the promotion of the interests of its Members
- Distribution of power, generation, transmission, and revitalization of land and water resources, their use, conservation, and primary produce-related communications
- Manufacture, sell, or supply machinery, equipment, or consumables mainly to its members.
- Welfare measures, financial services, insurance of producers or their primary produce, promoting mutual assistance;
The Companies may also engage in other activities that would assist its members or their interests.
Formation of Producer Company and its Registration
The Producer Company is a company that produces goods or provides services. It can be formed by one or more persons who are interested in running the business, and it may be a sole proprietorship or partnership. After complying with the Act's registration criteria and provisions, such a producer company's objectives may be framed as provided in Section 581B as a Producer Company under this Act.
Basic Requirements for Incorporation
For Incorporating a Producer Company,
- A minimum of 5 Directors and 10 members are required for Farmer Producer Company and also, (Directors Min – 5 and Max – 15 )
- The minimum paid-up capital of the company should be 10,000 rs.
- The address of the registered office must be in India.
Documents required for Farmer Producer Company incorporation
- Copy of PAN card of all the members and Directors.
- Four Photographs of each member and Director.
- Identity Proof of all the members and Directors.
- Resident proof of all the members and Directors.
- Proof of address of the registered office.
- A certificate of incorporation or memorandum of association;
- A certificate from ROC stating that no application for registration of any other entity has been made by or on behalf of any partner in relation to any trade name or name similar to that proposed for use by your entity for carrying on its business activities.,
The important thing is - all the documents should be attested by a gazette officer.
Memorandum of Association (MOA)
The following information is included in the MOA to help understand the nature of the company and its relationship with the external environment.
- End with "Producer Company Limited" in the name clause.
- Situation Clause
- Object Clause and Purpose (business) of the company
- Liability Clause
- Capital Clause
- Subscriber Clause
- Members who shall act as Directors
- Territories the objects extend.
Annual Compliance for Farmer Producer Company
Compliance Every year the company has to file,
- Annual accounts must be filed with the ROC within 30 days of the AGM's conclusion.
- Annual Returns must be filed with the ROC within 60 days of the AGM's conclusion.
- Event-Based filing with ROC.
- To avoid penalties, the corporation must keep all records up to date, including its statutory register and Minutes book.
Important information for Members and directors of Farmer Producer Company
- At least four meetings should be held per year, once every three months.
- According to section 581ZO of the Companies Act, any dispute between the company's directors or members, or a combination of both, or another stakeholder, shall be settled through conciliation or arbitration as provided by the Arbitration and Conciliation Act, 1996. (26 of 1996)
- Ensure that the books of accounts are kept up to date; Prepare annual financial statements
This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.
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