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Producer company registration
Overview of
Producer company registration
A producer company is a type of company registered under the Companies Act, 2013 in India, specifically for the benefit of farmers or primary producers.It conducts business as usual, but with a focus on advancing the interests of farmers and the agricultural industry. The main objectives of a producer company are to:
Carry out activities for the benefit of its members, such as procurement, grading, pooling, and marketing of produce.
Provide support services to its members, such as credit, extension, and insurance services. Engage in processing, packaging, and branding of agricultural produce.
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Benefit Of Producer
company registration In India –
Starting a producer company in India offers several benefits, including:
Pooling of resources:
Farmers can combine their assets, such as land, labour, and capital, into a producer company in order to achieve scale advantages and improve their bargaining position.
Improved marketing:
A producer company provides its members with improved marketing and sales opportunities for their produce, by pooling their produce and selling it as a collective.
Access to credit:
A producer company can provide its members with access to credit facilities and other financial services, such as insurance and pension schemes.
Improved production:
A producer company can provide its members with technical and marketing support, which can help improve the quality and productivity of their produce.
Increased bargaining power:
Members of a producer firm can improve their bargaining position and secure higher prices for their produce by pooling their resources.
Legal recognition:
A producer company is a legally recognized entity, which provides a formal structure for the organization and management of agricultural activities.
Limited liability:
Members of a producer company have limited liability, meaning that they are not personally responsible for the debts of the company beyond the capital they have invested.
Documents required for starting a
producer company registration in india
The following documents are required for registering a producer company in India:
- Proof of identity and address of the directors, such as PAN card, Voter ID, Passport, and Utility bill.
- Address proof of the registered office, such as Rent Agreement, Sale Deed, or Electricity Bill.
- Memorandum of Association (MOA) and Articles of Association (AOA), which outline the company's objectives, rules, and regulations.
- PAN and TAN of the company.
- Digital Signature Certificates (DSCs) and Director Identification Numbers (DINs) of the directors.
- NOC from the owner of the registered office.
- Consent to act as a director from all the proposed directors.
- A declaration from a practicing Company Secretary or a Chartered Accountant in practice certifying that the proposed company complies with the requirements of a producer company under the Companies Act, 2013.
Eligibility criteria for registering a producer
Eligibility criteria for registering a producer company registration in india
To be eligible for registering a producer company in India, the following criteria must be met:
Minimum number of members: Each member of a producer company must be an individual and a main producer, such as a farmer, maker, weaver, or fisherman, and the firm must have a minimum of ten members.
Maximum number of members: A producer company can have a maximum of 100 members.
Primary producer membership: At least 10% of the members of a producer company must be primary producers and the rest of the members can be primary producer institutions, such as farmer producer organizations or co-operatives.
Area of operation: A producer company must operate within India and can have its activities spread over one or more states.
Objectives: A producer company's primary goals must be to carry out tasks for the benefit of its members, including purchasing, classifying, pooling, and selling produce, as well as to offer members support services like credit, extension, and insurance.
Capital structure: A producer company must have a minimum paid-up capital of Rs. 5 lakhs.
Management: A production company must have a Board of Directors, and every member must be individual business members, with a minimum of five and a maximum of fifteen members.
Forms to file for Producer company registration in india
The following forms are required to be filed for registering a producer company in India:
Form SPICe (Simplified Proforma for Incorporating Company Electronically): This form is used to apply for the incorporation of a company and obtain DIN, DSC, and PAN/TAN for the company.
Form INC-7 (Application for reservation of name): This form is used to apply for the reservation of the name of the proposed producer company.
Form INC-22 (Active Company Tagging Identities and Verification): This form is used to declare the registered office address of the producer company.
Form MGT-14 (Annual Return): This form is used to file the annual return of the producer company with the Registrar of Companies (ROC).
Form PAS-3 (Return of Allotment of Shares): This form is used to file the details of share allotment with the ROC.:
PSR Compliance Assistance
The process of registering a Producer company involves adhering to many requirements, preparing documents, and complying with pre-incorporation and post-incorporation compliances. Moreover, complying with specific MCA mandates is imperative to avoid incurring hefty penalties and late fees. This process can seem daunting and confusing without professional assistance. PSR Team provides expert service in the online registration process of one’s company on the MCA website.
During your journey to registering your business, our team of professionals will help you at every stage.
Frequently Asked Questions(FAQ's)
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01. What is a Producer Company?A Producer Company is a type of company that is formed to promote the economic interests of its producer members. It is registered as a company under the Companies Act, 2013 and can engage in activities related to production, marketing, and sale of primary produce.
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03. Who can become a member of a Producer Company?Only producers can become members of a Producer Company. Producers are people who work in primary production industries like farming, fishing, and mining.
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05. What is the minimum number of members required to form a Producer Company?The minimum number of members required to form a Producer Company is ten.
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07. What is the minimum capital requirement to start a Producer Company?The minimum capital requirement to start a Producer Company is Rs. 5 lakhs.
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02. What are the documents required for Producer Company registration?The documents required for Producer Company registration include PAN card and Aadhaar card of directors and shareholders, passport size photographs, address proof of registered office, and MOA and AOA.
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04. What is MOA and AOA?MOA stands for Memorandum of Association, which defines the company's objectives and scope of operations. AOA stands for Articles of Association, which defines the company's internal regulations and management structure.
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06. How long does it take to register a Producer Company?The registration process of a Producer Company usually takes around 15-20 days, subject to government processing time and document verification.
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08. What is the annual compliance requirement for a Producer Company?According to the Companies Act of 2013, a Production Corporation must submit numerous yearly filing requirements, including annual returns, financial statements, and income tax returns. Additionally, it is also required to hold a General Meeting every year.