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