How to Register Producer Company in Rajasthan

In this article we will discuss Producer Company Registration in Rajasthan, A Producer Company is a Corporate legal entity ( Producer Company Registration ) formed by primary producers, viz. farmers, milk producers, fishermen, weavers, rural artisans, craftsmen. A Producer Organisation can be a producer company, a cooperative society or any other legal form which provides for sharing of profits/benefits among the members. In some forms like producer companies, institutions of primary producers can also become member of PO.

Producer Company is registered as a private limited company with the last word of the producer company in the name comes with producer Limited, There is no limit for the maximum number of members in a producer company and there should be minimum 10 members and the minimum director in the company should be 5.

What are the Benefits of producer Company Registration in Rajasthan

Benefits and Income Tax Act for Agriculture Income
Loan facility can be provided to the members by the company
Can accept deposits in the form of fixed or recurring deposits
Good Pricing for produce
Better management
Procuring at cheaper price compared to individual purchase
Reduced Cost of Transporation
Reduced Cost of Production
Benefit of economies of scale.
Assistance by government in various schemes
NABARD has taken up the cause of supporting and to meet the needs of Producer Companies. It set up a Rs. 50 crore Producer Organisation Development Fund (PODF) in 2011, out of its operating surplus

What is Primary Produce

Primary produce means the produce of farmers from agriculture and
allied activities or produce of persons engaged in handloom, handicrafts and other cottage industries, including any by-product and product resulting from ancillary activities thereof.

Primary produce also includes any activity intended to increase the production or quality of the aforementioned products or activities. Persons engaged in agriculture, horticulture, animal husbandry, fishery, sericulture, apiary, handloom, handicrafts, etc., can become members of the appropriate PO. Persons engaged in the collection of minor forest produce are also eligible for membership of PO although they gather these from forests and strictly are not producers

Documents Required for Members and Directors :

PAN card
Aadhar Card
Bank statement or Bank pass book with name address and Last entry should not be older than 2 months
Passport size photograph of all the applicants
Certificate/Identity that all the applicants are involved in the activities relating to producer company
Video of 20 seconds for digital signature
Email ID
Mobile number

Documents required for Office Address

Electricity bill of office address of producer company
rent agreement if rented
NOC from Owner

Minimum Requirements for Producer Company Registration :

10 Members
5 Directors ( Members and Directors can be same person)
Should be engaged in activities of producer company
Minimum Authorised Capital Should be Rs.5 Lakhs

Time Taken for Registration of Producer Company

Generally it Takes around 20-25 working Days

Essential features of a PO?

It is formed by a group of producers for either farm or non-farm activities.
It is a registered body and a legal entity.
Producers are shareholders in the organization.
It deals with business activities related to the primary produce/product.
It works for the benefit of the member producers.
A part of the profit is shared amongst the producers.
Rest of the surplus is added to its owned funds for business expansion.

Important Activities of Producer Organisation

Procurement of inputs
Disseminating market information
Dissemination of technology and innovations
Facilitating finance for inputs
Aggregation and storage of produce
Primary processing like drying, cleaning and grading
Brand building, Packaging, Labeling and Standardization
Quality control
Marketing to institutional buyers
Participation in commodity exchanges
Export

How to Register Producer Company in Rajasthan