Producer Company registration in Bihar is a type of company formed to improve the income and living standards of farmers, rural artisans, and other primary producers. It is a hybrid of a cooperative society and a private limited company. The Government of India introduced the concept of Producer Companies through the Companies Act, 1956, and it was later amended in 2013. In Bihar, Producer Companies are registered with the Registrar of Companies (ROC) under the Ministry of Corporate Affairs.
A Producer Company is a company registered under the Companies Act, 2013, and it is formed to carry on any of the following activities: a) Production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary produce of the Members or import of goods or services for their benefit. b) Processing, preserving, and enhancing the value of primary produce of the Members. c) Rendering technical services, consultancy services, training, education, research and development, and all other activities for the promotion of the interests of its Members.
- Limited Liability: Members of a Producer Company have limited liability, which means their liability is restricted to the amount of capital they have invested in the company.
- Separate Legal Entity: A Producer Company is considered a separate legal entity from its members, which means it can own property, borrow money, and enter into contracts in its name.
- Membership: A Producer Company can have a minimum of 10 members and a maximum of 50 members.
- Board of Directors: A Producer Company must have a Board of Directors consisting of a minimum of 5 and a maximum of 15 Directors.
- Annual General Meeting: A Producer Company must hold an Annual General Meeting (AGM) of its members once every year.
- Profit Distribution: The profits earned by a Producer Company are distributed among its members based on their participation in the business.
- Small Producer Company: It is a company where the share capital does not exceed Rs. 10 lakhs and consists of only small-scale producers.
- Farmer Producer Company: It is a company where the members are farmers and produce primary agricultural commodities.
- Multi-State Producer Company: It is a company where the members are producers from more than one state.
Costs: The costs involved in registering a Producer Company in Bihar may vary depending on various factors like the type of company, the number of directors, the amount of authorized capital, etc. However, the approximate costs involved are as follows:
- Company Name Reservation: Rs. 1,000
- Incorporation fees: Rs. 5,500
- Stamp Duty: 0.15% of the authorized capital
- Professional Fees: Depends on the consultant or lawyer hired
Time Involved: The time involved in registering a Producer Company in Bihar may also vary depending on various factors like the availability of the name, the number of directors, the amount of authorized capital, etc. However, the approximate time involved is as follows:
- Company Name Reservation: 1-2 working days
- Incorporation Process: 15-20 working days
- Obtaining PAN and TAN: 7 working days
- Limited Liability: The members of a Producer Company have limited liability, which means their liability is restricted to the amount of capital they have invested in the company.
- Credibility: A Producer Company is considered more credible than other forms of business organizations.
- Access to Capital: A Producer Company can access capital from various sources like the government, financial institutions, and private investors.
- Better Bargaining Power: A Producer Company can negotiate better prices for its members’ produce due to its larger size.
- Professional Management:
Producer company registration in Bihar is registration of companies by, for farmers. Producer company is farmer’s company. Farmers come together, pull their resources and form a company. A producer company can be characterized as a lawfully perceived assortment of ranchers/agriculturists with the mean to work on the norm of their living, and guarantee a decent status of their accessible help, salaries and benefit. Under Companies Act 1956, a Producer Company can be shaped by 10 people (or more) or 2 organizations (or more) or by a mix of both (10 people and 2 foundations) having their business level headed as one of the accompanying:
Pre-Incorporation Checklist for Producer company registration in Bihar:
Any at least 10 makers (Individuals) can combine to shape a creation organization however there could be no maximum breaking point on the quantity of individuals.
Or on the other hand, any at least 2 maker foundations can shape a maker organization.
A base capital of Rs. 500,000 is expected to integrate a maker organization.
There ought to be least 5 directors (limit of 15) in a producer organization.
It can never be changed over into a public organization anyway it tends to be changed over into a multi-state co-usable society.
Authorized activities of Producer companies:
The Producer Company is expected to manage the produce of its individuals and is approved to continue any of the accompanying exercises:
Processing (processing also includes, preserving, brewing, vinting, drying, distilling, canning and packaging)of the produce of its individuals;
Production, deal or supply of hardware, apparatus or consumables to its maker individuals;
To give instruction on the common help standards to the maker individuals from the maker organization and others;
To deliver consultancy administrations, specialized administrations, preparing, R&D and any remaining required exercises for advancing the interests of maker individuals;
Age, transmission and appropriation of force, protection and correspondence interesting to essential produce, revitalisation of land and water assets,
Protection of the essential produce and its maker;
To advance the strategies of commonality and shared help;
The government assistance of individuals as might be chosen by the Board;
Supporting of obtainment, advertising, handling or different exercises, for example, stretching out of credit offices or some other monetary help to its maker individuals.
Some other movement (subordinate or accidental to the fundamental goals of the maker organization) to advance the common help among the maker individuals and the lines of standards of commonality.
Benefits of Producer Companies:
Coming up next are the advantages of registration of Producer Company:-
The members of the producer company will be qualified for get extra offers in similar extent to the offers held by them.
Advances and Investments: As referenced over the Producer Company comprise of people who are essential makers, and consequently, are needing monetary help every once in a while. Thus, a unique arrangement under the organizations acts 1956 was passed for giving credits to maker individuals. A Producer Company can give monetary help to its individuals through:-
∙ Credit facility : This is accessible to any part for a period not surpassing a half year (such office should be regarding the matter of the Company).
∙ Credits and advances: These are given to the maker part against security, repayable inside a period not surpassing a long time from the date of dispensing of such credits or advances.
∙ Tax Benefit (Taxability of Producer Company): The Income Tax Act, 1961 under segment 10(1) absolves the horticultural pay. Notwithstanding, the exclusion gave under area 10(1) for the horticultural pay at times fluctuate based on the rural movement completed.
Frequently Asked Questions
QUESTION: 1. What is support in producer company?
Support, thus, is characterized as the utilization of administrations presented by maker organizations to their individuals by interest in their business exercises.
QUESTION: 2. Producer Company according to the Companies Act, 2013
Such organizations are considered to have the integrity of co-agents and the dynamicity of organizations. The Companies Act, 2013 holds no arrangement concerning the Producer Companies and with the institution of the new demonstration, the previous demonstration stands canceled
QUESTION: 3. Is Amul a Producer company?
Anand Milk Union Limited or Amul is an Indian cooperative dairy company, based at Anand in the territory of Gujarat. Framed in 1948, it is a helpful brand overseen by an agreeable body, the Gujarat Co-usable Milk Marketing Federation Ltd. … Amul has wandered into business sectors abroad.
Farmer Company Registration is the process of registering a company that is formed by farmers for carrying on any of the activities related to the production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary produce of the Members or import of goods or services for their benefit. The registration of farmer companies is governed by the Companies Act, 2013, and it is regulated by the Ministry of Corporate Affairs in India.
To register a Farmer Company, the following steps need to be followed:
- Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN) for the proposed directors of the company.
- Apply for Name Reservation: The first step in the registration process is to apply for the reservation of the company’s name. The name must be unique and should not be similar to any other registered company or trademark.
- Drafting of Memorandum of Association (MOA) and Articles of Association (AOA): MOA and AOA are the legal documents that outline the objectives, rules, and regulations of the company. These documents must be drafted and filed with the Registrar of Companies (ROC).
- File Forms with the ROC: After the MOA and AOA are drafted, the forms required for the registration of the company need to be filed with the ROC. These forms include the Form INC-32 (SPICe), Form INC-33 (e-MOA), and Form INC-34 (e-AOA).
- Pay Registration Fees and Stamp Duty: Once the forms are filed, the registration fees and stamp duty must be paid.
- Obtain Certificate of Incorporation: After the ROC approves the registration application, a Certificate of Incorporation will be issued. This document marks the completion of the registration process.
The advantages of registering a Farmer Company include limited liability, access to capital, credibility, and better bargaining power. The process of registering a Farmer Company involves costs such as the fees for Digital Signature Certificates, Director Identification Numbers, Name Reservation, drafting of MOA and AOA, filing of forms, payment of registration fees and stamp duty, and professional fees for consultants or lawyers. The time involved in the registration process may vary depending on the number of directors, the amount of authorized capital, and the availability of the company name.