Producer Company Registration

Get Register your Producer Company at just ₹ 23,500/- only
(Inclusive of all fees)

 

Ideal for agricultural activities

 

For producers and farmers

 

Simple & Secure Online Process

 

Dedicated Professional

 

Get Registration in 10-15 Days

 

Get Post Incorporation Assistance

 
 

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 admin@legalwindow.in for Producer Company registration and Producer Company Compliance services

Advantages of Producer Company

Separate Legal Entity 

Once an entity is registered it is born in the eyes of law which means it is separate from its owners, Directors, Managers, shareholders and employees etc. It can operate simply by its bank account and also provides the right to file case against third parties in case of wrongful act.


Limited Liability 

The liability of the Members is limited to the extent of Capital invested by them in the Company and therefore, they cannot be held personally liable for the debt and obligations of the Company. Therefore, the liability of the members is limited to the amount, if any unpaid on shares.


Beneficial for Members

Initially every member can only receive the value of the produce as decided by the Board. The withheld price may be disbursed after some time in form of cash or by allotment of equity shares. Limited return is provided to the Members but can also be allotted the bonus shares. The surplus can also be disbursed as patronage bonus.

Special User Rights

Active members of the producer company are provided the special user rights, if so authorized by the Articles of Association of the company. It is the right relating to the supply of additional produce by the active members of the Company for which appropriate instruments are issued to active members in respect of such rights.

Minimum Requirements

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

PAN Card of the Member and Directors of the proposed Company

Passport in case of Foreign Nationals

Identity Proof of the Member and Directors of the proposed Company
 (Aadhar /Voter ID/Driving License/Passport)

Address Proof the Member and Directors
(Utility Bill/Telephone Bill/Mobile Bill/Bank Statement not older than two months)

Latest passport size photograph of Member and Directors

Producer Card of Members

Business Address Proof
Owned Property : (Copy of Registry and Latest Govt. Electricity Bill or Water Bill)

Rented/leased : (Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill)  

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)

10 Digital Signature Certificates

5 Director Identification Numbers

INC 20A Commencement of Business Certificate 

Stamp duty on INR 5 Lakh Authorized Capital (Rajasthan)

Company Incorporation using SPICe

Bank Account Open

MOA & AOA

PAN & TAN

GST Registration

ESI Registration

1 Name Approval Application

PF Registration

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.BasisProducer Company Co-operative Society
1.Registration underCompanies ActCooperative Societies Act
2.MembershipOnly producers and their agenciesOpen to any individual or co-operative
3.Area of operationThroughout IndiaRestricted
4.SharesTradable within membership onlyNot tradeable
5.Member stakesArticles of association can provide for linking shares and delivery rightsNo linkage with no. of shares held
6.Voting rightsOnly one member one vote and non-producer can’t voteOne person one vote but  government have veto power
7.ReservesMandatory to create reservesCan be created if made profit
8.Disclosure and audit requirementsVery strict as per the Companies ActAnnual report to regulator
9.Borrowing powerMany options availableRestricted
10.Dispute settlementThrough Arbitration or in accordance with Companies ActThrough co-operative system

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FAQs on Producer Company

How many people are required to form Producer Company?
Minimum five Directors and ten Members agreeing to subscribe the shares of the Company who can be individuals or two producer institutions or combination thereof.
What is the minimum capital requirement to form a Producer Company?

The minimum capital to incorporate a producer company is Rs. 5 Lakhs

What is the maximum time period to deposit the money for share agreed to be subscribed by the First Members of the Company?

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.

 Whether it is necessary to have a PAN Card?

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.

Can I provide the residential place for registered office of the company?

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.

Can a Director or Shareholder be a same person?

Yes, a Director can also become a shareholder and vice versa as a Company is a Separate Legal Entity.

What are the activities allowed for Producer Company ?
  1. 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.
  2. Rendering technical services, consultancy services, training, education, research and development and all other activities for the promotion of the interests of its Members;
  3. Generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce;
  4. Promoting mutual assistance, welfare measures, financial services, insurance of producers or their primary produce
Can the money deposited in bank account as subscription money be withdrawn?

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.

What is Company Registration Certificate?

It is the documentary proof evidencing that the Company has been registered and having its unique identification number as Corporate Identification Number.

What are the Annual Statutory Compliance requirements to be complied by a Producer Company?
  • 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.
What is the maximum limit of Members?

There is no limit on number of Members in case of Producer Company.