FAQ

FAQ

1.WHAT IS MPO ?

MPO is MCL’s farmer Producer Organization

2.WHY WE NEED MPO IN MCL BIOFUEL ESTATE PROJECT ?

  • MCL biofuel project is for :
  • 1. Biofuel production
  • 2. Organic farming

Basic aim is to “Increase income of each household (both farmer and non-farmer) by Rs 5000 min

MPO will be formed for making group of all the families in that particular Taluka towards this common goal. Each member will be then eligible for it. Members can contribute towards MCL Biofuel estate in various ways and will increase their income by 5000 Rs per month minimum

3.WHAT IS THE OBJECTIVE OF MPO ?

  • 1. To form a group or association of farmers for developing biofuel manufacturing project in Taluka
  • 2. Each member will contribute towards equity or funding which will be invested in the MCL biofuel manufacturing unit
  • 3. Each member will go for biomass or energy crop farming and will be engaged for raw material supply for the biofuel estate. Non farmer members will contribute in various ways to development of biofuel and organic farming sector business in Taluka
  • 4. MPO shall help in every way to increase and improve the business of biofuel and organic farming which will in turn improve the dividend for each member and also shall help create better income opportunities for all the families in Tahsil

4.IS MPO A GOVERNMENT ENTITY ? WHICH ACT IS IT REGISTERED UNDER ?

  • Yes, it is constituted under law.
  • It is registered under the provisions of section 581 of Companies Act, 1956 (section 465(1) of the Companies Act, 2013)

5.WHO WILL FORM OR PROMOTE MPO ?

MCL Biofuel Startup (MBS) in that particular Taluka will Form MPO. For incorporation of new MPO we need following things –

  • 1. 10 farmers having 7/12 extract or Tahsildar certificate of being farmer
  • 2. All 10 members could be from same family
  • 3. All 10 members can have same or single 7/12 extract
  • 4. MBS can become promoter member if he is not a farmer. He has to arrange 10 farmer members to form MPO.

6.HOW MANY DIRECTORS ARE REQUIRED IN MPO ?

  • Minimum 5 Directors but not more than 15

7.WHAT ARE THE DOCUMENTS REQUIRED FOR FOUNDER MEMBER ?

The following documents are required & to be provided as two copies which shall be self attested

  • 1. 7/12 extract or Tahsildar certificate in the name of each of members (promoters)
  • 2. 4 photographs each of prospective Promote
  • 3. PAN card of each of promoters
  • 4. Adhaar card of each of promoters
  • 5. Identity Proof (Voter ID / Passport / Driving License...any one proof is sufficient) of each of promoters
  • 6. Address proof (Bank Statement or passbook for current 3 months / Mobile or landline bill/ Electricity Bill in own name not older than 3 months) of each of promoters
  • 7. Electricity Bill and Maintenance Bill of proposed registered office of company.
  • 8. NOC & Pan Card of the owner, in case of rented premises being used for proposed registered office (format will be provided after name approval)
  • 9. Digital signature Certificate (DSC) to be Prepared from local agent.

In addition to this following information of promoter is required:

  • i. Place of Birth
  • ii. Education Qualification
  • iii. Occupation
  • iv. Email ID
  • v. Mobile No.
  • vi. No. of Years Stay at present address

All the papers should be self attested

8.WHAT ARE THE DOCUMENTS REQUIRED FOR DIRECTOR ?

The following documents are required to be provided as two copies which shall be self attested

  • 1. 4 photographs each of prospective directors
  • 2. PAN card
  • 3. Adhaar card
  • 4. Identity Proof (Voter ID / Passport / Driving License...any one proof is sufficient)
  • 5. Address proof (Bank Statement or passbook for current 3 months / Mobile or landline bill/ Electricity Bill in own name not older than 3 months)
  • 6. Signature on Digital signature form (shall be provided by agency, one sign across photo)

In addition to this following information of directors is required:

  • i. Place of Birth
  • ii. Education Qualification
  • iii. Occupation
  • iv. Email ID
  • v. Mobile No.
  • vi. No. of Years Stay at present address
  • vii. Interest in other entities

All the papers should be self attested

9.WHO CAN BECOME MEMBER OF MPO ?

A person being a “producer” i.e. any person engaged in any activity or connected with or reliable to any primary produce of farmer i.e. arising from agriculture, animal husbandry, horticulture, floriculture, forestry, forest products, bee raising and farming plantation products), or from any other primary activity or service which promotes the interest of farmers or consumers or produce of persons engaged in handloom, handicraft and other cottage industries or any product resulting from any of the above activities, including by-products of such products. Thus any member a farmer or not farmer can become MPO.

10.WHAT ARE THE DOCUMENTS REQUIRED FOR MEMBER (OTHER THAN PROMOTERS) OF MPO ?

The following documents may required to provided in two copies which shall be self attested

  • 1. 2 photographs each of prospective members
  • 2. PAN card
  • 3. Adhaar card
  • 4. Identity Proof (Voter ID / Passport / Driving License...any one proof is sufficient)
  • 5. Address proof (Bank Statement or passbook for current 3 months / Mobile or landline bill/ Electricity Bill in own name not older than 3 months)

11.HOW MPO WILL BE REGISTERED ?

  • 10 or more individual farmer with agricultural land (along with proof as 7/12 extract or Tahsildar certificate) who desires to apply for Farmer Producer Company need to form a Company; it have to be registered as Producer Company and shall have the words “Producer Company Limited” as the last words of it name.

Basic steps incurred in Formation:

  • 1. Securing DSC (Digital Signature Certificate) for directors
  • 2. Securing DIN (Director Identification Number)
  • 3. Applying for Company Name
  • 4. Drafting & registering Memorandum & Articles of Association (MOA & AOA)
  • 5. Application for Incorporation (Registration of Company) with Registrar of Companies (ROC)
  • 6. Submitting various forms (as per the case) demanded by ROC

12.WHAT IS THE PROCESS OF REGISTRATION OF MPO ?

Minimum10 farmers (producers) as promoter of MPO 10 or more individual farmer with agricultural land (along with proof as 7/12 extract, or any other document issued by govt. indicating such applicants as farmer) who desires to apply for Farmer Producer Company need to form a Company.

In formation process the steps shall be as follows:

  • a) DSC preparation and KYC of all Promoters
  • All filings done by the companies are required to be filed with the use of Digital Signature Certificate (DSC).
  • b) DIN (Director Identification Number)
  • The DIN Number can be obtained online without any fees by providing identification proof number (Only PAN Card, Elector Photo Identity Card, Passport, Driving License number is accepted). Producer Companies are required to apply for DIN in Form DIR-3 attaching prescribed documents.
  • c) Name Registration with RoC for MPO
  • It has to be registered as Producer Company and shall have the words “Producer Company Limited” as the last words of it name. The application for the reservation of name to be filed in Form INC-1 with DIN of all 5 Directors PAN numbers of rest 5 Promoters. Form INC-1 need to file with details of all promoters. As example in a company wants to propose “Unicorn” as their company’s name in Indapur Taluka of Raigad district shall register the MPO’s name as “MCL-Indapur Unicorn Producer Company Limited”
  • d) Preparation of MOA & AOA
  • After ascertaining the name, MOA & AOA need to be prepared. Memorandum & Articles of Association should be printed & get duly stamped & signed by all promoters with their name, father’s name, occupation, address and number of shares subscribed for. Authorized Capital shall be of 15 Lacs with Nominal face value of shares as Rs. 10 each. Draft of MOA & AOA may provided by MCL on request for the applicants
  • e) RoC filing & documents submission
  • SPICe forms cannot be used for formation of Producer Companies. Producer Companies is incorporated through Form INC-7, Form DIR-12, Form INC-22. The Incorporation document is required to be filed in Form INC-7, Form DIR-12, Form INC-22, Form INC1, Form INC-9, Declaration in Form INC-8, Form DIR-2 for each director, and declaration of compliance.
  • f) Fees payment RoC for registration after document complying process
  • Total formation expenses including ROC fees, Stamp duty, Notary Charges & Professional fees for authorised share capital of Rs. 15 Lacs will be Rs. 35,000/- plus 18% GST excluding DSC charges.
  • g) Tax Registration
  • Businesses liable for income tax must obtain a tax identification card and number [known as Permanent Account Number (PAN)] from the Revenue Department. In addition to this, businesses liable to withhold tax must necessarily obtain a Tax Deduction Account Number (TAN). Goods & Service Tax (GST) Registration should also be obtained.
  • h) Bank Account
  • Desiring applicant need to open a Bank Account with minimum two officially nominated (authorized) signatories in the name of the company
  • Once registration process is done, the desiring applicant shall choose a location for implementing the project and opt the block division (Taluka) where desiring applicant wishes to work for.

13.HOW TO BECOME MEMBER OF MPO ?

  • By buying minimum 25 Equity shares of MPO @ Rs. 10/- each (or in multiplication of 25 shares) + processing fees of Rs. 250/-

14.WHY IS THERE PROCESSING FEES ?

The processing fees shall utilized for the following activities -

  • Registration & Documentation Expenses
  • Promotional Expenses
  • Registration to the program of fuel independence for India 2030
  • Administration Expenses
  • Seminars / Promotions

15.HOW MANY SHARES A MEMBER CAN PURCHASE ?

  • Any number of shares can be a member of MPO

16.WHAT IS THE PROCESSING FEES FOR DIFFRERENT NUMBER OF SHARES ?

  • Uniform Processing fees will be Rs. 250 /- respective of no. of shares.

17.WILL I GET SHARES CERTIFICATE OF MPO ?

  • Yes

18.WILL I ALSO BECOME SHAREHOLDER OF MBS OR MCL ?

  • No

19.WHAT IS THE AREA OF WORKING OF MPO ?

  • Tahsil is the area of working of MPO

20.WHAT IS THE TARGET NUMBER OF MPO MEMBERS?

  • 10,000 (min 1000 and max up to 1 lac as per mandate rule) target of number of members of MPO

21.WHAT IS THE TARGET OF CAPITAL OR FUND TO BE RAISED ?

  • 50 lacs (minimum being 5 lacs & maximum up to 5 Cr. as per mandate rule) is the target of capital or fund to be raise

22.WHAT IS THE ADMINISTRATION STRUCTURE OF MPO ?

23.WHO CAN BECOME DIRECTOR IN MPO ?

  • First time after registration the directors shall be among promoters. After first general meeting (within 90 days) directors will be appointed as per election.

24.WHAT IS THE PROCESS OF APPOINTMENT OF DIRECTOR ?

  • As per Section 581P of the Companies Act, 1956 the Members who sign the memorandum and the Articles of Association may designate therein the Board of Directors (not less than five) until the directors are elected in General Meeting. The election of directors shall be conducted within a period of ninety days of the registration of the Producer Company.

25.WHO WILL VOTE ?

  • Each Member (Shareholder) of MPO will vote.

26.HOW MANY VOTES EACH MEMBER HAS ? DOES IT DEPENDS ON THE NUMBER OF SHARES OF MEMBERS ?

  • The voting rights shall be computed on the basis of a single vote for every member irrespective of the number of shares with shareholders One Member = One Vote

27.WHAT IS THE INFRASTRUCTURE REQUIRED FOR MPO ?

  • i. One Office
  • ii. Staffs as per requirement
  • iii. 5 Directors
  • iv. 1 Chairman
  • v. 1 financial Expert
  • vi. 1 technical expert

28.WILL MPO BE A PART OF MBE MANUFACTURING COMPANY AT TAHSIL ? IF YES, IN WHAT PROPORTION ?

  • YES, MPO will be partner in the LLP formed for MBE Project at Tahsil. The LLP has 3 partners – 1) MCL Biofuel Startup (MBS) 2) MCL 3) MCL Producer Organisation.
  • The proportion shall be in accordance to the Investment brought in for the Project.

29.WHAT IS THE COST OF FORMATION OF MPO ?

  • Total formation expenses including ROC fees, Stamp duty, Notary Charges & Professional fees for authorised share capital of Rs. 15 Lacs will be Rs. 35,000/- plus 18% GST excluding DSC charges.

30.WHAT ARE THE OTHER REQUIREMENTS OF MPO ?

  • 1. MPO should have registered office in said Tahsil
  • 2. Registered office can be ‘house’ or ‘residence’ of promoter
  • 3. MCL will act as technical guide company

31.WHAT IS THE DIFFERENCE BETWEEN CO-OP AND MPO ?

Key differences between MPO and cooperative Organisation as follows

PARTICULARS COOPERATIVE MPO
Registration Cooperative Societies Act. Indian Companies Act.
Objectives Single object Multi-object
Area of Operation Restricted, discretionary Entire Union of India
Membership Individuals and cooperatives Any individual, group, association, producer of the goods or services
Share Non-tradable Not tradable but transferable limited to members on par value
Profit sharing Limited dividends on shares Commensurate with volume of business
Voting rights One member, one vote, but Government and Registrar of Cooperatives hold veto power One member, one vote. Members not having transactions with the company cannot vote
Government control Highly patronized to the extent of Interference Minimal, limited to statutory Requirements
Extent of Autonomy Limited in “real world scenario” Fully autonomous, self ruled within the provisions of Act
Reserves Created if here are profits Mandatory to create every year
Borrowing power Restricted More freedom and alternatives
Relationship with other corporate / business houses / NGOs Transaction based Producers and corporate entity can together float a producer company

32.WHAT CAN BE DONE TO PROMOTE MPO ?

  • Seminars, pamphlets, skits, conferences, educational rallies, banner & advertisements

33.WHICH IS THE GOVT ORGANIZATION WHICH CONTROLS MPO ?

  • MPO control under Roc (Registrar of Companies) under Ministry of Corporate Affairs

34.WILL MPO BE REGISTERED WITH ROC ? WILL THERE BE INFORMATION OF REGISTERED MPO ON THE WEBSITE OF ROC ?

  • MPO have to be registered with RoC as a Producer Company, information can be viewed on MCA’s site

35.HOW DO I PROCEED FOR FORMATION OF MPO ?

  • a) Apply for becoming MCL biofuel startup (MBS)
  • b) Once selected, submit all documents to MCL as mention below -
  • 1. Application Form
  • 2. KYC of applicant Non Disclosure Agreement (NDA)
  • 3. Cancelled cheque of Applicant
  • 4. Recent colour passport size front face photo
  • 5. Post application MOU (Memorandum of Understanding) shall be made between MCL & the applicant.
  • c) Arrange the requirements for MPO as below -
  • 1. Select name for MPO
  • 2. 10 members to register MPO
  • 3. Required documents of 10 members
  • 4. Fees required for MPO

36.HOW MANY DAYS IT TAKES TO FORM A MPO ?

  • It takes usually 10 - 15 days to register MPO, subject to documentation.

37.DO I NEED TO WAIT TILL MPO IS REGISTERED WITH ROC ?

  • No, law has provided a provision that registration can be done once all compilation has been done, by the time MPO can perform.

38.SERVICES OF MCL FOR MPO ?

MCL self provide facility of loan for MPO

39.WHOM SHOULD I CONTACT FOR ANY QUERY RELATED TO MPO ?

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