What is meant by Farmer’s Cooperatives?
The newly amended Companies Act, 2013 introduced the concept of Farmers Cooperative / Producer Company. Producer companies are those companies which are engaged in activities dealing in producing. Here, producing relates to what has been grown or produced, particularly by farming.
How can Producer Company/ Farmers Cooperative come into existence?
A farmer’s cooperative or producer company can come into being by 10 or more producers (persons involved in, or in activities related to, produce or growth), two or more producer institutions or a combination of 10 or more producers and producer institutions. Such a company can only have equity capital, requires a minimum of five directors and an authorised capital of Rs. 5 lakh.
Registration of Producer Company with TaxHelpdesk
Once your order is placed, TaxHelpdesk’s dedicated team for reviewing of documents will check the documents uploaded by you within 24 working hours. After reviewing documents, a Tax Expert will be assigned and your order will be processed. Apart from this, you also will be able to check the status of the order in your assigned account.
Steps to register a Producer Company / Farmers Cooperatives
The procedure for forming a Producer company is similar to the one for forming a private limited company. It can be registered in 5 easy steps:
Documents required for Producer Company / Farmer's Cooperatives Registration
To Be Submitted By Directors & Shareholders
– Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
– Scanned copy of Voter’s ID / Passport/Driver’s License / Aadhaar Card
– Scanned copy of Latest Bank Statement / Telephone or Mobile Bill / Electricity or Gas Bill
– Scanned passport-sized photograph
– Specimen signature (blank document with signature [directors only])
To Be Submitted For Registered Office Address
– Scanned copy of Latest Bank Statement / Telephone or Mobile Bill / Electricity or Gas Bill
– Scanned copy of Notarised Rental Agreement in English
– Scanned copy of No-objection Certificate from property owner
– Scanned copy of Sale Deed / Property Deed in English (in case of owned property)
Time framework of registration of OPC
Time period taken from the date of application on submission of all the required documents:
| Particulars | Days |
|---|---|
| Application of PAN Card | 15 days |
| Application of TAN Card | 7 days |
| Application of DIN | 1-2 days |
| Application of DSC | 3-7 days |
| Drafting of MOA and AOA | 2-3 days |
Advantages & Disadvantages of Producer Company / Farmers Cooperatives
| Advantages | Disadvantages |
|---|---|
| Members’ benefits | Lack of proper control |
| Income Tax Benefits | Compulsory audit |
| Easy Loans | Difficult to manage funds |
FAQs
As per the governing Act, the producer company needs to add the words “producer company” after the name of its company so as to distinguish it from other companies.
Yes, the producer company are required to be audited right from the first year of its incorporation itself and if its turnover exceeds Rs. 5 crore, then the company is required to employ full time company secretary.
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