Producer Company REGISTRATION
A Producer is any person engaged in any close-knit or related activity to the primary producers. A Producer Company is thus an umbrella term that includes all of the following. Producing, harvesting, procurement, grading, pooling, handling, marketing, selling, exporting the primary producers of the members, or the imports of goods or services.
A producer company combines the best features of a cooperative society and a Private Limited Company, offering collective benefits to its member producers under a robust and definitive legal framework. Only business entities registered as Private Limited Companies are eligible for Producer Company registration in India. However, the names that these companies are incorporated with, shall end with the words “Producer Company Limited”. Individuals and institutions involved in Primary Production activities can come together and form a Producer Company in India.
Objective of Producer Company
The main objective of the farmer producer company is to facilitate the formation of co-operative business as companies and to make it possible to convert the existing co-operative business into companies.
As per the Act, the objectives of a producer company should relate to all or any of the following matters: (as given in the law)
a) Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary production of the Members or import of goods or services for their benefit, provided that the Producer Company may carry on any of the activities specified in this clause either by itself or through other institution.
b) Processing including preserving, drying, distilling, brewing, vinting, canning, and packaging of the produce of its Members.
c) Manufacture, sale or supply of machinery, equipment or consumables mainly to its Members.
d) Providing education on the mutual assistance principles, to its Members and others.
e) Rendering technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its Members.
f) Generation, transmission, and distribution of power, revitalization of land and water resources, their use, conservation and communication relatable to primary produce.
g) Insurance of producers or their primary produce.
h) Promoting techniques of mutuality and mutual assistance.
i) Welfare measures or facilities for the benefit of Members as may be decided by the Board.
j) Any other activity, ancillary or incidental to any of the activities referred to in clauses (a) to (i) or other activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner.
k) Financing of procurement, processing, marketing or other activities specified in clauses (a) to (j) which include extending of credit facilities or any other financial services to its Members.
Advantages of Producer Company Registered in India
Separate Legal Entity- A producer company is a separate legal entity, and there is a limited liability of its members.
Greater Credibility - Greater credibility is offered by Producer Company as compared to other unregistered organizations of agriculturists or farmers.
Easy Management- Through the filing of simple forms with the concerned ROC, we can make changes in the Board of Management of a producer company swiftly.
Owing Property- Duly registered producer company can sell or own a property in its own name and it is entitled to accept deposits from or give loans to its agriculturist members at very reasonable rates of interest.
Deposits Acceptance- A Producer Company is eligible to accept deposits in the form of recurring deposit or fixed deposit. It can also disburse loan among the members and farmers at a reasonable rate of interest.
Key decisions to be taken before starting a Producer Company?
1. What would the proposed business activities be?
2. What amount of capital must be invested?
3. What benefits will be offered to the members?
4. Who would be the first directors of the company?
5. What should be the name of the company?
6. What should be the registered address of the company?
Types of Producer Companies
Production Businesses- Production, Procurement manufacture of its members and others' primary producer is the producer companies' primary function.
Marketing Businesses- A business involved in the marketing or promoting the primary produce or provision of education services to members and others can also constitute itself as a Producer company.
Technical Service- Any business that offers technical assistance to the producers, Provides training and educational services, or conducting research and development can register as a Producer in India.
Finance Business- A business financing producing activities then be it production, or marketing r development it can register itself as a producer company.
Infrastructure business- The business involved in providing infrastructure to the producers, whether in the form of electricity, water resources, irrigation techniques, or consultation regarding the same, may also constitute themself as a Producer company.
Producer Company Incorporation Checklist
Businesses looking forward to registering as Producer Companies must first fulfill certain prerequisite conditions as prescribed under the Section 465 (1) of the Companies Act, 2013. These conditions are concerned with the number of members, number of directors, name, address, and capital of the company. A detailed list of all such legally mandatory conditions have been mentioned in the table below.
1. At least 10 producer individuals or at least 2 producer institutions as members
2. At least 5 directors
3. A minimum capital of Rs.5 Lakhs
4. A unique name ending as “Producer Limited Company”
5. A registered address for the principal place of business or the main office
Basic requirement to form a farmer producer company
1. 10 or more than 10 individuals.
2. 2 or more than 2 institutions.
Pre-registration requirements to form Producer Company
1. Minimum number of 5 directors and 10 members should be there.
2. Minimum paid-up capital of Rs. 5 Lakhs is required to form the company.
3. Company can have as many as members they want as there is no maximum limit of the members.
4. The Producer Company in India cannot be deemed as a public company.
5. The former company can have only equity share capital.
6. There should be at-least four boards meeting every year and the meetings should not be held less than once every three months.
Producer Company Registration Documents
1. Copy of PAN Card of directors
2. Passport size photograph of directors
3. Aadhaar Card/ Voter identity card
4. Rent agreement (If rented property)
5. Electricity/ Water bill (Business Place)
6. Property papers (If owned property)
7. Landlord NOC (Format will be provided)
8. Farmer Certificate
Producer Company Registration Process
1. Apply for DIN and DSC- The applicant must apply for a Director Identification Number (DIN) and a Digital Signature Certificate (DSC).
2. Verification of Company Name- This process involves checking and verifying the company name to make sure it satisfies the Ministry of Corporate Affairs' (MCA) requirements. To get a producer Registration certificate, a name reservation application may be submitted to the Registrar of Companies (ROC) with the designation "Producer Limited Company" as the last part of the name.
3. Filling out the Form- The applicant would file the application form to obtain the certificate of incorporation once the name of the company had been approved by the appropriate authorities.
4. Document Submission- After completing the aforementioned steps, the applicant must submit all necessary paperwork to the MCA.
5. Draft the MOA and AOA- The Drafting of the Articles of Association and the Memorandum of Association comes after the completion of document submission.
6. Company Incorporation- The Registrar of Companies will issue the producer company's registration certificate of incorporation after confirming the procedure.
Why The Startup Trends for Producer Company Registration
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3. We will allocate a dedicated manager who will keep you informed about the status of your Producer company Registration. Our support team is available to answer any questions you may have.