It is under the 2013 Companies Act that Producer Company gets registered. There is the objective of procurement, harvesting, production, pooling, grading, marketing, selling, handling, and importing services or goods for own benefits or exporting Member primary produce. Produce are stated to be things which are grown or produced by farming methods. Primarily, post-harvest processing activities and agriculture is primarily dealt with by the producer company.
In India, more than 85% of farmers are marginal or small farmers having land holdings lesser than 2 hectares. It is due to further fragmentation of the farm lands and farmers which has led to disorganization. Adopting the latest technologies is simply not viable for Indian farmers. But having such farmers organized into produce companies, it is possible to unlock economies of scale and improve farmer livelihood. Hence, the procedure company concept here is aimed towards empowering farmers. It is achieved through creation of farmer clusters organized in the form of producer company.
Why register Producer Company?
There are many who do seek producer company registration services and get their producer company registered. Several reasons do exist to register which are given below:
- Easy management: The company’s management board can be changed easily by applying with the Company Registrar with simple forms. The company’s management board controls all its activities.
- Separate legal entity: Under the Act, the producer company is stated to be a juristic person and legal entity. Hence, it enjoys wide legal capacity as well as incur debts and own properties. Its members (Directors) do not have any liability towards the creditors.
- Owning property: The company being juristic person has the right to own, acquire, alienate and enjoy property of its own name. no claims can be made by any member on the company’s property as long it is found a going concern.
- Uninterrupted existence: It has perpetual succession, which means uninterrupted or continued existence until dissolved legally. Being separate legal person, the company is unaffected due to any member departure or death. Irrespective of membership changes, it continues its existence.
- Better credibility: When compared to those unregistered producer organizations, it is able to enjoy better credibility. The Central Government registers and monitors the producer companies, while the State Governments monitor and govern the Producer Organizations.
- Obtaining DIN & DSC: DIN (Director Identification Number) & DSC (Digital Signature Certificate are necessary for the producer company’s proposed directors. It is within a period of 5-7 days that DSC & DIN can be obtained.
- License and name approval: For minimum five Directors, once DSC and DIN are made available, name reservation application for producer company is possible with the MCA. It is within 3-5 working days that it becomes possible to obtain name approval.
- Producer company registration: After obtaining of name approval, there should be submission of all necessary registration documents to MCA with registration application. Generally incorporation application will be approved by the MCA within 5-7 working days, subject to processing time.
One can avail the online producer company registration to quicken the process.