Why Set Up a Producer Company: Producer companies are typically established to facilitate the activities of primary producers, such as farmers, artisans, and others involved in agricultural and related activities. The primary objectives include:
- Promoting the economic interests of members.
- Improving the agricultural and rural economy.
- Providing access to better resources, technology, and markets.
- Enhancing the bargaining power of members.
- Promoting sustainable farming and production practices.
Procedure to Set Up a Producer Company:
- Eligibility Criteria:
- A minimum of 10 individuals (primary producers) or two or more producer institutions (cooperatives or producer companies) can form a producer company.
- Name Approval:
- Apply for the approval of the company’s name to the Registrar of Companies (ROC). The name should end with “Producer Company Limited.”
- Drafting Memorandum and Articles of Association:
- Prepare the Memorandum of Association (MOA) and Articles of Association (AOA) according to the format specified in the Companies Act, 2013.
- Registration and Incorporation:
- After the ROC’s approval of documents, you will receive a Certificate of Incorporation. This certificate indicates that the producer company is legally formed.
- Obtain PAN and TAN:
- Apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for the producer company.
- Open a Bank Account:
- Open a bank account in the name of the producer company and deposit the initial capital.
- Apply for Other Registrations:
- Depending on your activities, you may need to apply for other registrations like GST, FSSAI, etc.
