A Complete Guide to Farmer Producer Company Registration: Procedure, Benefits & Compliance

Introduction

• Briefly describe the importance of agriculture in India and why farmers need stronger institutional structures. (Based on the article’s overview.) ENTERSLICE PRIVATE LIMITED
• Introduce what a “Producer Company” is and why it matters to farmers.

What Is a Producer Company?

• Statutory meaning under the Companies Act, 2013 as well as the older Act of 1956. ENTERSLICE PRIVATE LIMITED
• How it functions as a hybrid of a cooperative society and a private company. ENTERSLICE PRIVATE LIMITED

Key Objects of a Producer Company

• Production, processing, manufacturing, education, technical services, generation (electricity/water), insurance, promotion, welfare and allied activities. ENTERSLICE PRIVATE LIMITED
• Explain each object with brief examples (e.g., harvesting/marketing produce, processing food grains, providing technical R&D to members).

Benefits of Registering a Producer Company

• Separate legal entity & limited liability for members. ENTERSLICE PRIVATE LIMITED
• Credibility, better access to technology and funding. ENTERSLICE PRIVATE LIMITED
• Simplified management structure, easier conveyance of agricultural land, ability to accept deposits. ENTERSLICE PRIVATE LIMITED

Eligibility Criteria

• Minimum 10 individuals, or two institutions + individuals, or a combination. ENTERSLICE PRIVATE LIMITED
• Minimum paid-up share capital of ₹5 lakh. ENTERSLICE PRIVATE LIMITED
• Minimum and maximum directors (5 to 15). ENTERSLICE PRIVATE LIMITED
• Name must end with “Producer Company Ltd” and must be unique. ENTERSLICE PRIVATE LIMITED

Procedure for Incorporation

• Apply for DSC & DIN. ENTERSLICE PRIVATE LIMITED
• Name approval (RUN process) and then certificate of incorporation (around 10 days). ENTERSLICE PRIVATE LIMITED
• Drafting of Memorandum of Association (MOA) and Articles of Association (AOA) and signing of affidavits. ENTERSLICE PRIVATE LIMITED

Documents Required

• Identification documents (PAN, Aadhaar, election ID) of members/directors. ENTERSLICE PRIVATE LIMITED
• Bank statements, photos, utility bills of members. ENTERSLICE PRIVATE LIMITED
• Registered office documents: utility bill (not older than 3 months), rent agreement, NOC from owner, sale deed. ENTERSLICE PRIVATE LIMITED
• MOA & AOA, certificate of incorporation. ENTERSLICE PRIVATE LIMITED

Recent Amendments in Agriculture Sector

• Farmers Produce Trade and Commerce Bill, 2020 (also called Farmers Amendment Bill) enabling intra-state and inter-state trade. ENTERSLICE PRIVATE LIMITED
• Farmers Agreement for Price Assurance and Farm Services Bill, 2020 – agreements on assured price. ENTERSLICE PRIVATE LIMITED
• Essential Commodities (Amendment) Act, 2020 – changes in regulatory control for essential commodities. ENTERSLICE PRIVATE LIMITED

Post-Registration Compliance

• Annual audit by practising CA. ENTERSLICE PRIVATE LIMITED
• Minimum 4 board meetings per year. ENTERSLICE PRIVATE LIMITED
• File Income Tax Return, ROC & MCA filings. ENTERSLICE PRIVATE LIMITED
• Restrictions/permissions on share transfer. ENTERSLICE PRIVATE LIMITED
• Tax benefit: certain agricultural income exempt under Income Tax Act, 1961. ENTERSLICE PRIVATE LIMITED

Why Choose Enterslice for Registration

• Team of CAs, CS & lawyers. ENTERSLICE PRIVATE LIMITED
• 24×7 support, experience in entity registration. ENTERSLICE PRIVATE LIMITED
• Process: Fill form → Get callback → Submit documents → Track progress → Deliverables. ENTERSLICE PRIVATE LIMITED

Conclusion & Next Steps

• Recap of the advantages of forming a Producer Company for farmers and rural producers.
• Encourage interested producers/farmers/agribusinesses to evaluate their eligibility and consider registration as a strategic move.
• Provide contact call-to-action (as per Enterslice’s form) or advise to consult a professional.