Producer Co.

Starting a Farmer Producer Company

 

If you’re looking to start a Farmer Producer Company, here’s a simple guide. As per the Companies Act of 1956, you can set up this type of company if:

 

– You have at least 10 individuals or 2 institutions joining hands.

– There’s no cap on the maximum number of members.

– The main goal is to manage and boost activities like producing, collecting, grading, selling, or even importing goods and services for the members’ benefit.

 

Think of this Farmer Producer Company as a modern twist on traditional co-operatives. It lets co-operatives step into the corporate world or helps them transition into more structured companies. The real beauty of this concept is how it supports struggling farmers in India, encouraging them to work together for financial growth.

 

One thing to remember: These companies mainly focus on benefiting their members and aren’t primarily set up for the public’s benefit.

 

Bonus Point: With the green light from RBI, a Farmer Company can also act as a lending agency.

 

This guide is designed to be SEO-friendly, easy to grasp, and tailored for a human connection.

 

Goals of the Farmer Producer Company

 

The Farmer Producer Company aims to help and support its members in the following ways:

 

1. Helping members buy, produce, gather, grade, combine, manage, market, sell, or even export their goods. They can also assist in importing goods and services for members.
2. Assisting in processing members’ products, which includes preserving, making drinks, and packing.
3. Offering machines, tools, or everyday items for sale to its members.
4. Educating its members and the community by sharing helpful insights and principles.
5. Offering technical help, advice, research, training, and more to boost members’ success.
6. Supporting in producing and sharing power, taking care of land and water, and sharing information about main products.
7. Providing insurance for the main products and their producers.
8. Sharing methods that emphasize teamwork and shared support.
9. Introducing welfare programs to better serve members.
10. Engaging in any activity related to the above points.
11. Helping finance all these activities or providing loans and financial help to members.

 

Our main focus is to ensure the growth and success of our members in the farming sector.

 

 

 

Top Advantages of Farmer Producer Companies in India:

 

1. Accepting Deposits

 

Farmer Producer Companies can easily take in fixed or recurring deposits, thanks to current regulations.

 

2. Offering Loans with Collateral

 

These companies can operate as loan providers. They can give out loans using fixed deposits, gold, or government bonds as collateral.

 

3. Sharing Profits with Members

 

All the earnings these companies make are kept inside the business. Then, they fairly distribute these profits among their active members.

 

4. Tax-Free Agricultural Income

 

The great thing is, the profits these companies make are tax-free! They don’t need to worry about any tax duties from the IT department right now.

 

5. Providing Loans to Founding Members

 

Not just that, Farmer Producer Companies can also legally offer loans to their initial members.

 

 

Setting Up a Farmer Producer Company in India: Essential Paperwork

 

If you’re looking to set up a Farmer Producer Company in India, here’s a simple checklist of the documents you’ll need:

 

1. Personal Details:

– Your PAN card and photo.

– PAN card and pictures of the main directors & shareholders.

 

2. Identity Documents:

– Aadhar card, Driving License, Passport, or Voter ID for all directors, members, and shareholders.

 

3. Proof of Address:

– This can be a bank statement or utility bills like your phone or electricity bill.

 

4. Evidence of Being a Producer:

– Documents such as a Sarpanch letter, Khasra-Khatuni, Income Tax Return showing agricultural income, or any other valid document confirming you as an active member in farming.

 

5. Confirmation of Registered Address:

– If you’re using rented space, you’ll need a no-objection certificate from the property owner, along with a rent agreement and a utility bill for that address.

 

 

How to Easily Register a Farmer Producer Company in India

 

Starting the registration for a Farmer Producer Company in India is straightforward. First, visit the MCA website and create an account. Once you’re logged in, head to the services section to find the ‘Spice+’ e-form. This form is your one-stop solution for registering a company online.

 

The Spice+ e-form is split into two main sections:

– Part A: Here, you can confirm your desired company name.

– Part B: This section offers various essential services such as:

– Official company registration

– Assigning a Director Identification Number (DIN)

– Providing Permanent (PAN) and Tax Account Numbers (TAN)

– Registration for EPFO, ESIC, and GSTIN

– Profession Tax registration

– Help with opening a bank account

 

What’s fantastic about the Spice+ form is that it combines 10 services from three government ministries, both central and state. It’s a digital timesaver, cutting costs and making registration easier. Introduced by the Government of India, this initiative supports the “Ease of Doing Business” campaign. Typically, the Ministry of Corporate Affairs will issue your registration certificate within 30 days from the application’s submission date.

 

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“Your Business Vision, Our Expertise! At BusinessBadhega, we don’t just help you start your business; we walk with you every step of the way. From initial incorporation to post-registration needs, our seasoned team ensures your business is set up right, and stays compliant. And with our transparent and budget-friendly pricing, you get unparalleled value. Let’s partner for success and transform your business aspirations into a thriving reality!”

 

 

– We’re here for you, offering full support from start to finish during your incorporation journey.

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Let’s make your business dreams a reality, together!