Farmers today deal with a range of difficulties in an ever-changing agricultural scene, from securing the marketing of their produce to price instabilities. The Producer Company Registration offers this sort of power to farmers to organize and run businesses for their mutual benefit collectively.
How Diligence Certifications can facilitate the process with credibility for a Farmer Producer Company (FPC).
For generations, farmers have been the backbone of this nation, working hard to cultivate lands that feed us all. However, most of the individual farmers struggle to access markets and fair prices for their produce as well as other resources such as technology and credit. With these systematic issues in mind, the FPC has come into existence as a potent remedy towards empowering the farmers.
An FPC is basically a business organization established by farmers themselves for their own benefit; it pools together the demand of members and thereby strengthens their bargaining power. Farmers are empowered to join together to build their livelihoods, increase their productivity, and make sure of a more sustainable future for themselves and their communities through FPC registration. The introduction shall discuss some salient benefits, the legal framework concerned, and some important steps required to register a Farmer Producer Company, ushering in a more strengthened agricultural sector.
Producer Companies, on the other hand, are business organizations which are formed under the Companies Act of 2013. Producer Companies primarily aim at empowering, supporting, and furthering the interests of primary producers and their cooperative societies. This is a fair trade for the farmers and the producers, so that they get better remuneration for what they are providing.
Producer Companies can be formed by a minimum of 10 members who have been engaged in any primary produce or activities connected with it or two or more producer institutions and having an annual turnover not less than 5 lakhs.
Farmer Producer Company has the following objectives:
Introduce modern technology in agriculture which has precision farming techniques, drone technology, and digital platforms for market information:
The regime for registration of Agro Producer Companies primarily falls under Part IXA of the Companies Act, 2013, which contains special provisions for Producer Companies.
Key features include:
Process for registering producer company requires several steps, with very careful completion of the following:
Diligence Certifications make the Producer Company credible and procure the required certificates that truly pave the registration path of the Producer Company. These certifications act as a stamp of approval, which marks the company’s effort towards ethical practices, transparency, and compliance.
How Diligence Certifications help:
A Producer Company is a legal form of business that enables farmers, agriculturalists, and producers to joint common production, processing, and marketing of agri-products with corporate benefit.
✔ Legal Recognition: arranges an organized business structure for farmers and producers.
✔ Afford Limited Liability Protection: protects members' personal assets.
✔ Financial Benefit: entitled to government schemes as well as tax exemption and subsidy.
✔ Better Market Access: facilitates producers in marketing their produce.
✔ Ownership & Control: controlled for their benefit by the farmer members.
✔ Minimum 10 individual producers or 2 producer institutions.
✔ Minimum 5 directors.
✔ Registered office address in India.
✔ Compliance with the Companies Act, 2013.
It normally takes around 15 to 20 working days, depending on the document verification and approvals for the registration.
Only Indian farmers, producers, and agricultural institutions can register a Producer Company.
Feature | Producer Company | Cooperative Society |
Legal Framework | Companies Act, 2013 | Cooperative Societies Act |
Management | Board of Directors | Elected Managing Committee |
Profit Distribution | Profits shared among members | Surplus distributed as per rules |
Government Control | Limited interference | High government involvement |
The Diligence Certifications was created with the primary objective of providing compliance services in India and globally, by assisting in the implementation of business to ensure compliance requirements – all requirements in one place.
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