Register a Producer Company Online in India

Start a company owned by farmers or producers to work together on processing, marketing, or selling products.

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Four Steps to Get Your Trust Registration

Fill the Form

Provide business details

Add to cart

Pay the required fee online

Submit Documents

Upload required papers

Certificate delivery

Official Document Delivery

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Basic Plan

₹ 12,999
+GST

Standard Plan

₹ 15,499
+GST

Basic Plan
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₹ 26,499
+GST

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Overview of Trusts

A producer company is a corporate entity designed specifically for farmers and agricultural producers under the Indian Companies Act, 2013. It allows small producers and farmers to collaborate, enhancing their bargaining power and access to markets. The structure focuses on processing, production, procurement, grading, pooling, handling, marketing, selling, the export of members’ produce, and import of goods for their benefit.

This model of organization helps farmers achieve higher revenues through collective efforts while providing a systematic way to manage agricultural activities with efficiency and scale. Producer companies are crucial for improving agricultural productivity and profitability, promoting mutual assistance among farmer members, and enabling better access to technology and financial resources.

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Benefits for

Members
Company

Better Market Access

Members gain better market exposure and sales opportunities through collective selling and marketing efforts.

Input Cost Reduction

Bulk purchasing of supplies and shared services lowers the costs of inputs like seeds, fertilizers, and machinery.

Access to Credit Facilities

Enhanced ability to secure loans and financial support, as companies can provide guarantees on behalf of members.

Risk Mitigation

Collective operations reduce individual risks associated with farming and marketing of produce.

Training & Development

Members benefit from training programs and technical support, enhancing farming techniques and business management skills.

Profit Distribution

Profits are distributed fairly based on the quantity and quality of produce supplied by the members to the company.

Legal Identity & Credibility

Enhances trust among stakeholders, facilitates legal contracts, and eases financial transactions.

Limited Liability

Limits financial risk to the amount invested in the company, protecting company assets.

Access to Capital

Can issue shares, accept deposits, and access loans, expanding financial resources.

Bargaining Power

Greater leverage in negotiating prices and terms with suppliers and buyers.

Government Incentives

Access to various government schemes designed to support agricultural development and infrastructure.

Tax Advantages

Potential tax exemptions and benefits specifically tailored for agricultural activities.

Minimum Requirements

As Per Company Act 2013, there are Minimum Requirements That Need to be met For Producer Company Incorporation in India.

Number of Members

Number of Members

Directors

Directors

Registered Office

Registered Office

Share Capital

Share Capital

Documents for Producer Company Incorporation

To incorporate a Producer Company in India, the following documents are required

Identity & Address of Directors and Members

Registered Premises Documentation

Scanned Copy of PAN & Aadhaar/Driving License/Passport/Voter ID

Copy of Recent Utility Bills (Not Older Than Two Months)

Copy of Recent Utility Bills or Bank Statement (Not older than 2 months)

Scanned Notarized Rental Agreement (English Version)

Digital Passport-Size Photo

Scanned No-Objection Certificate from Property Owner

Email ID & Phone Number

Scanned Copy of Sale/Property Deed in English

Note: The registered office for your business can be a residential address; it does not need to be a commercial space.

Trust Registration Procedure

Where state-specific trust acts exist, they govern trust registration; otherwise, the Indian Trusts Act, 1882 applies.

Define Name of Trust: Choose a legally permissible and unique name for the trust to avoid any confusion with existing entities.

Define Objects and Area of Work: Clearly outline the trust’s objectives and the geographical areas where it intends to operate, specifying the type of charitable work and beneficiaries.

Choose Trustees of the Trust: Select trustworthy and competent individuals who align with the trust’s mission to manage and oversee its operations.

Execute Trust Deed on Requisite Value of Stamp Paper: Draft the trust deed including all the details above, and execute it on stamp paper of the value mandated by the state where the trust is being registered.

Obtain Signatures of Settlor and All Trustees: Ensure that the settlor and all trustees sign the trust deed in the presence of a witness to validate their consent and understanding of the trust’s terms.

Affix Attested Photographs of All Trustees: Attach duly attested recent photographs of all trustees to the deed as part of the documentation requirements.

Register the Trust Deed with Registrar/Sub-Registrar: Submit the signed and completed trust deed to the local registrar or sub-registrar’s office. The choice of office depends on where the trust operates or holds property.

File Application for Registration of Trust: Lodge a formal registration application with the Assistant/Deputy Charity Commissioner along with all necessary documents and the prescribed fees.

Attend Hearing in Response to Inquiry: Attend a hearing where the Assistant/Deputy Commissioner will conduct inquiries about the trust to verify the information provided and assess the trust’s compliance with legal requirements.

Obtain Registration Certificate: After the hearing, if the trust is found compliant, a registration certificate will be issued, marking the trust’s formal recognition and enabling it to commence operations.

Note on Private Trust Registration in India: Registration of private trusts, especially those holding immovable property, is not mandatory under the Indian Trusts Act, 1882, but is advisable for legal clarity and to prevent disputes.

Registrations Required After Creation of a Trust

After establishing a trust in India, obtaining the following registrations is essential to ensure legal compliance and access to various benefits and funding opportunities

Section 12AB Registration: Provides income tax exemption on the trust’s income, improving financial efficiency and sustainability.

Section 80G Registration: Allows donors to claim tax deductions on their donations, encouraging greater contributions to the trust.

Purpose: Managed by NITI Aayog, this registration provides a unique ID to the trust, facilitating access to government schemes and fostering transparency and accountability. It is also often required when opening a bank account for the trust.

Purpose: Specifically for applying to central and state government grants. This registration ensures that trusts can access various government funding opportunities efficiently.

Purpose: Mandatory for receiving foreign contributions, this registration ensures proper utilization and accounting of foreign funds, thereby enhancing regulatory compliance and international funding opportunities.

Purpose: Necessary for undertaking Corporate Social Responsibility (CSR) activities on behalf of companies, allowing the trust to receive CSR funds from corporates, thereby contributing to community development and social initiatives.

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Frequently Asked Questions

What is a Producer Company?

A Producer Company is a legally recognized corporate entity formed by farmers or producers, mainly aimed at cooperative activities related to agricultural production. This type of company allows farmers to pool their resources for collective benefit and operate under a corporate framework.

Who can form a Producer Company?

A Producer Company can be formed by any ten or more individuals or two or more institutions, each of whom would be a producer, or by a combination of ten or more individuals and institutions. These members must be involved in activities related to the primary produce.

What are the main objectives of a Producer Company?

The objectives typically include production, procurement, harvesting, pooling, handling, marketing, selling, export of members' produce and import of goods or services for their benefit. They may also involve the processing of produce, manufacture, sale, or supply of machinery, consumables, or other services.

How is a Producer Company governed?

A Producer Company is governed by a Board of Directors which must have a minimum of five and a maximum of fifteen members. The management of the company is entrusted to the Board, which is accountable to the company members.

What are the benefits of forming a Producer Company?

The benefits include better access to investment, technology, and inputs; improved production and marketing capabilities; enhanced creditworthiness; and the ability to enter into new markets and negotiate better terms with buyers. Moreover, members can benefit from economies of scale, reducing costs, and increasing revenues.

How is a Producer Company different from a traditional cooperative?

Unlike traditional cooperatives, Producer Companies can return profits to the members, not based on their patronage (use of services of the cooperative) but rather on the shares they hold. This aligns the benefits more closely with contributions to capital and can attract more significant investment.

What are the statutory requirements for a Producer Company?

The Producer Company must be registered as per the Companies Act, 2013. It needs to maintain annual compliance by filing annual returns and audited financial statements with the Ministry of Corporate Affairs.

Can a Producer Company issue shares?

Yes, a Producer Company can issue equity shares to its members. The shares can be issued at par or at a premium, and the members' voting rights can be restricted to a single vote per member to maintain democratic control, regardless of the number of shares held.