GSTARK Producer Company

An introduction

Abhishek Thakur & Rajiv Ranjan

G S T A R K & ASSOCIATES
WWW.GSTARK.CO.IN
+91-9810-230-556
BACKGROUND
The economy of India is an agricultural
centric economy. Around 60% of
population depends on agricultural
activities for their livelihood. But, the
primary producers and farmers have had a
long struggle in India. In order to address
these problems, the Government of India
set up an expert committee, led by Y.K.
Alagh (an economist) to look into the
matter. In the year 2002, they introduced
the Producer companies concept to the
Indian economy. Since then, they have
helped primary producers gain access to
input, credit, production technology,
market etc.
The main objective of
the producer company is to facilitate the
formation of co-operative business as
companies and to make it possible to
convert existing co-operative business into
companies.
DEFINITION
Producer company can be defined as a
legally recognized body of farmers/
agriculturists with the aim to improve the
standard of their living, and ensure a good
status of their available support, incomes
and profitability. Under Companies Act
1956, a Producer Company can be formed
by 10 individuals (or more) or 2 institutions
(or more) or by a combination of both (10
individuals and 2 institutions) having their
business objective as one of the following:
 Procurement
 Production
 Harvesting
 Grading
 Pooling
 Handling
 Marketing
 Selling, or
 Export
of the primary produce of the Members or
import of goods or services for their
benefit.

PRE-REGISTRATION REQUIREMENTS
Minimum number of 5 Directors and 10
Members should be there, or, any 2 or
more producer institutions can form a
producer Company;
The former Company can have only
Equity Share Capital.
It can never be converted into a public
company however it can be converted
into a multi-state co-operative society.
DOCUMENT REQUIREMENTS
One Passport size photo, PAN Card
copy and Aadhar Card copy of all the
Proposed Directors and Producers;
Mobile No. & Email ID of Proposed
Directors and Producers;
Place of birth, Area of Occupation,
Education and Duration of stay at
present address;
Proof of identity: passport copy / voter
id card copy / driving license copy;
Proof of residence: electricity bill /
mobile bill / bank statement (not older
than 2 months).
INFORMATION REQUIREMENT
Proposed name of Proposed Producer
Company (Any 2);
Main Object / Activity of Proposed
Producer Company;
Duly Notarized Rent agreement of
property for situation of Registered
Office of Proposed Company along
with Rent Receipt;
Electricity bill / water bill / phone bill of
such property in the name of landlord
(not older than 2 months);
Authorized capital of the Proposed
Producer Company;
Bifurcation of shares subscribed by the
proposed subscribers.
COST OF INCORPORATION
Professional Charges for the Whole
Procedure of Incorporation of a Producer
Company is Rs. 35,000 (Rupees Thirty-five
Thousand Only).
Fees Must be paid in advance.
Quotation Includes all Statutory fee &
other Expenses, Name application, ROC
Certification, filing of Forms, approvals,
documentation, and liasoning with the
Department related to incorporation of
company.
No additional fees of any kind shall be
charged extra.