Introduction of Producer Company
A Producer Company is basically a corporate body having the objects or activities relating to primary production as specified under the Act. In a producer company, a group of people related to farming and its selling/exporting also.
The Incorporation of this entity is governed by the Part IXA of Companies Act, 1956 and any other law for the time being in force until any special Act is framed. The producer company can also lend loans to its members subject to the conditions.
To form such entity ten or more member are required being the producers; or any two or more producer institutions; or its combination thereof. A Producer Company enjoys all the benefits which are available to any other Company like the liability of its members is limited to the extent of unpaid share capital by its members. It is generally deemed as Private Limited Company.
Legal Window has team of experts providing you the best assistance, timely delivery and guaranteeing the highest customer satisfaction with respect to Company formation process. You may get in touch with our team on 072407-51000 or email firstname.lastname@example.org for Producer Company registration and Producer Company Compliance services
Advantages of Producer Company
Minimum Five persons as Director and maximum fifteen
Minimum ten or more individual and each one of them being persons as Members; or two or more producer institutions or combination thereof.
In case of foreign Entity or individuals opting to incorporate Producer Company; Minimum one Director shall be Indian resident
One person should be appointed as a full time Chief Executive Officer
Minimum Paid Up Capital requirement – 5 Lakhs
Director Identification Number if available
Documents Required for Incorporation of Producer Company
Process of Incorporation of Producer Company
1. Complete the Application Form
You are requested to first fill the simple questionnaire provided by our expert team.
2. Document Processing
At the second step, we will be requiring the documents in accordance with the questionnaire filled by you so that we can arrange them as per the requirement and for processing.
3. Application for DSC
First of all DSC (Digital Signature Certificate consisting of the E-signatures) is required to be prepared. This step can be ignored if prepared already. It will approximately take 1-2 days.
4. Name Availability
The next step is to check the name availability. The name should be unique in nature and should not be similar to name of any other entity registered. It may take at least 1-2 days.
5. E-filing for incorporation of a Company
Once the name is approved, an online application is required to be filed through SPICE+ along with the requisite documents as obtained from the client with ROC. The MOA as well as AOA shall be filed online. This process again takes approximately 2-3 days.
6. Get Certificate of Incorporation
Lastly, after the approval a Certificate of Incorporation will be provided through e-mail which signifies that the Company has been incorporated.
Register your Producer Company in ₹ 23,500/- only (Inclusive of all fees)
More Insights on Producer Company Registration
How to Select the Name of Company
- You can check Company name availability thereby logging into MCA where you need to keep in Mind two or three available options along with the activity type. Our team will assist you in the selection of name of company.
- Also, along with checking the name availability we also need to check the trademark if already Registered under the proposed name which makes the online application for registration more Powerful. If you want to have a trademark of your word or logo you can get the same through Legal Window by clicking on the link Trademark Registration
Other Key Points
- If the proposed Director is already having the DIN then you can also check whether DIR-3 KYC is completed. You can verify the same with the help of our experts. If the same is not done yet, it can be done with help of Legal Window.
- The producer company is required to manage all the compliances after incorporation of the company like appointment of statutory auditor, filing commencement of business, Income Tax Filing, Annual Returns with ROC and other compliances as required by the law. Legal Window has a team of experts who keeps an eye on the due dates of your compliances and reminds you through mails.
- The Share Capital of the Producer Company consist only of the Equity Shares
- The voting rights shall be based on single vote for every member
- The Producer Company can only carry the activities as mentioned under the Act.
- Internal Audit is mandatory by an independent Chartered Accountant
- Loans Under Producer Company : The Producer company may provide financial assistance by way of credit facility to any members for upto 6 months The Producer company can also provide financial assistance in the form of loans and advances against the security. The loan shall be repayable between 3 months to 7 years.
Difference Between Producer Company and Co-Operative Society
|S. No.||Basis||Producer Company||Co-operative Society|
|1.||Registration under||Companies Act||Cooperative Societies Act|
|2.||Membership||Only producers and their agencies||Open to any individual or co-operative|
|3.||Area of operation||Throughout India||Restricted|
|4.||Shares||Tradable within membership only||Not tradeable|
|5.||Member stakes||Articles of association can provide for linking shares and delivery rights||No linkage with no. of shares held|
|6.||Voting rights||Only one member one vote and non-producer can’t vote||One person one vote but government have veto power|
|7.||Reserves||Mandatory to create reserves||Can be created if made profit|
|8.||Disclosure and audit requirements||Very strict as per the Companies Act||Annual report to regulator|
|9.||Borrowing power||Many options available||Restricted|
|10.||Dispute settlement||Through Arbitration or in accordance with Companies Act||Through co-operative system|
FAQs on Producer Company
The minimum capital to incorporate a producer company is Rs. 5 Lakhs
A Member is required to deposit the money in the bank account at the earliest and file the form for commencement within 180 days from the date of incorporation of the Company.
Yes, for Indian nationals becoming a Director in a Company it is mandatory to have a PAN Card and Passport in case of Foreign Nationals.
You can register a Producer Company at a commercial or residential place by providing the documents as specified. There is no restriction by the department.
Yes, a Director can also become a shareholder and vice versa as a Company is a Separate Legal Entity.
- Production, harvesting, processing, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit.
- Rendering technical services, consultancy services, training, education, research and development and all other activities for the promotion of the interests of its Members;
- Generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce;
- Promoting mutual assistance, welfare measures, financial services, insurance of producers or their primary produce
No, the money cannot be withdrawn but can be used by the Company for official purpose like for paying salary to staff and employees, other administrative expenses etc.
It is the documentary proof evidencing that the Company has been registered and having its unique identification number as Corporate Identification Number.
- The First Annual General Meeting shall be conducted within 90 days from the date of incorporation.
- The Registrar may permit extension of the time for holding Annual General Meeting (not being the first annual general meeting) by a period not exceeding 3 months.
- The Producer Company shall in each year hold an Annual General Meeting and not more than 15 months shall elapse between the date of one Annual General Meeting to the next.
- The proceedings of every Annual General Meeting along with Directors’ Report, the audited Balance Sheet and Profit & Loss Account shall be filed with the Registrar within 60 days of AGM.
There is no limit on number of Members in case of Producer Company.