For people and institutions engaged in primary production activities including farming, fishing or any other rural based industries, Producer Company registration in India is a game changer.
A Producer Company combines both cooperative societies and private limited businesses, giving its members a legal framework and collective advantages. In case you are considering creating a Producer Company, this blog will help you through 5 simple steps.
Process of Producer Company Formation in India
Given below is the process for FPO registration and formation in India:
Step 1: Know the Basics
Prior to proceeding with the actual formation, you should understand what a Producer Company is and what it requires. A Producer Company is a legal entity which offers a common platform for producers to get economies of scale, better resources, and also improve their profitability and productivity.
To form a Producer Company in India:
- Members: At least 10 individual producers or 2 producer institutions.
- Directors: More than five directors.
- Capital: Minimum paid up capital Rs. 5 Lakhs.
- Name: The company name should end with “Producer Company Limited”.
- Registered Address: A principal place of business/main office.
Step 2: Gather Required Documents
The next thing is gathering the documents. Proper documentation is essential to your Producer Company incorporation. The documents you’ll need are provided below:
Documents of the Members:
- Passport-size coloured photograph: Each member will bring a recent passport-size picture.
- PAN Card: All members ought to have a PAN Card copy.
- Proof of Identity: It may be an Aadhaar card, voter ID, passport or even operating license.
- Proof of Address: Utility bills, bank statements or other government document identifying the member.
- Proof of Producer Activity: Documents confirming the member’s primary production activities.
Documents of the Premises:
- Proof of Registered Address: Utility bill, rent agreement or property documents of the company’s registered office.
- No Objection Certificate (NOC): From the owner of the property in case the property are rented.
- Rent Agreement/Property Documents: If applicable.
Legal Drafts:
- Company Registration Questionnaire: Completed & signed.
- Consent of Directors (Form DIR-2): Signed consent forms from first directors.
- Signature of Directors Specimen Signature: Each director’s signature on a plain sheet.
- Signed Subscriber Sheet: All subscribers to the memorandum declare.
Step 3: Name Approval and Selection
The name of your Producer Company is very Important. The name ought to reflect your business activity and must follow the Companies Act, the Company (Incorporation) Rules, the Trademark Act and the Names & Emblems Act. The name should be distinct and not identical to any current company, LLP or registered trademark.
When you’ve selected a suitable name, you must reserve it together with the ROC. This is accomplished by using the RUN (Reserve Unique Name) or even Part A of the SPICe + application. Here is how to do this:
- Run a Name Check: Be sure the proposed name exists and doesn’t conflict with existing names.
- Submit the RUN Application: Reserve the name via the MCA (Ministry of Corporate Affairs) Website RUN service.
- Approval & Reservation: When approved, the name is reserved for your company for a particular period.
Step 4: File the SPICe + Application
The name approval is followed by filing the SPICe + (Simplified Proforma for Incorporating Company Electronically Plus) application. This is an integrated web form for incorporation on the MCA portal. The SPICe + form has two parts:
- Part A: For name reservation.
- Part B: For incorporation and other services such as PAN, TAN, DIN (Director Identification Number) and EPFO (Employees’ Provident Fund Organization) registration.
Follow these steps to finish the SPICe + application:
- Fill in Part A: If you haven’t done so already for name reservation.
- Fill in Part B: Give details of company, directors, capital structure and registered address.
- Attach Documents: Upload the scanned copies of the necessary documents mentioned in Step two.
- e-Form Filing: When completed and documents are attached, send the SPICe + form electronically.
Step 5: Get The Certificate of Incorporation
After the SPICe + application is submitted, the ROC will verify the details and documents. When everything goes smoothly, the ROC is going to issue your Certificate of Incorporation which is evidence your Producer Company is formally registered.
The Certificate of Incorporation will contain:
- Corporate Identification Number: Your firm identification number.
- Company Name and Address: Official name/registered address.
- Date of Incorporation: The date your company was registered.
With this particular Certificate of Incorporation, your Producer Company is a legitimate entity and can get business going.
Wrapping Up
Forming a Producer Company in India includes many clearly defined steps, from the fundamental understanding and gathering the appropriate documents to selecting the proper name and submitting the incorporation application. Following these five easy steps will help you structure a Producer Company that builds on the sturdiness of its people, improves productivity, and also produces sustainable development in primary production.
FAQs
How can you form a producer company?
To form a Producer Company, follow these procedures : Know the basics, gather documents, select a name/brand, file the SPICe + application on the MCA portal, and get your Certificate of Incorporation from the Registrar of Companies.
What requirements does a producer company have?
A producer Company shall have more than 10 individual producers or 2 Producer institutions as members, no less than five directors, a minimum paid-up capital of Rs. 5 Lakhs, unique name ending with “Producer Company Limited” and registered office address.
What are the steps for FPO?
To form a Farmer Producer Organization (FPO), identify and organize farmers, register the FPO as a legitimate entity (usually as a Producer Company), produce a business strategy, obtain funding and resources, and run training and capacity building programs for member farmers.
Where can I register a Farmer Producer Company?
To register a Farmer Producer Company, obtain files, pick a name, reserve the title with the ROC, complete and submit the SPICe + program with the MCA portal and receive the Certificate of Incorporation after the ROC verifies all documents and details.
How are FPOs formed?
FPOs are formed by a group of farmers deciding on a legal structure (generally a Producer Company), complying with statutory requirements (when necessary), preparing documents required, registration with appropriate authorities and operational plans to support and improve the members ‘agricultural activities.
