Producer Company Registration

Producer Company Registration
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Introduction

The producer company is also known as a farmer-producer company, which is an officially recognised organisation composed of farmers. The incorporation of the company is registered under the Companies Act 2013. This type of company is used for merging a corporate society and a company. Their goal is to organise a pool for local producers who want to become members. The first goal of a producer company is to participate in activities like production, harvesting, pooling, marketing and trading of primary agricultural products. Financial assistance is also available to its members for those activities which are mentioned above. The producer company cannot involve the public in their business transaction directly; the company will only deal with its members.

The Producer Company in India Under the Companies Act, 2013

The Producer Company pursue the rules that are given in Section 465 of the Companies Act,2013, which is refined from Part 9 A of the Companies Act, 1956. Its aim should match the activities which are given in section 581B of the Companie Act, 1956. The Formation and Registration of Producer Company is given in section 581C of the Companies Act, 1956. The producer company needs a minimum group of 10 individuals or two or more organisations with at least five directors and a minimum capital of 5 lakhs. Registration, incorporation and management all things are provided by The Companies Act, 2013. The rules and regulations are also provided by the Companies Act 2013.

Advantages of a Producer Company Registration

  1. A Producer Company combines the professional management of a private company with the benefits of a corporative society.

  2. Only primary producers or producer organisations can become members.

  3. Work under a legal framework that is designed especially for producers, organisation and ensuring professionalism.

  4. There is no link between member’s assets to the company they are only responsible for their investments.

  5. This makes it easy for small groups to start because the membership needs only 10 members but has no upper limits.

  6. There is no interference from outsiders, which means no government and private equity stakes.

  7. They can operate from anywhere in the country, allowing them to expand and conduct their business freely and professionally.

Documents Required for Producer Company Registration

The following documents are required for producer company registration: A 

  1. PAN Card with a photograph is required of all directors and shareholders.

  2. Identity Proof (one of these is required)

  • Aadhar Card

  • Voter ID Card

  • Driving License

  • Passport

  1. Address Proof (0ne of these are required)

  • Bank Statement

  • Mobile Bill 

  • Electricity Bill

  • Landline Bill

  • Producer Proof

  • Income Tax Return

  • Sarpanch Letter

  • Any other proof that declared the person as a producer.

Procedure of Producer Company Registration

A detailed registration procedure is given below:

Step 1: A Digital Signature Certificate is required for all the directors to sign the electronic documents.

Step 2: All the directors of the company must have a Directors Identification Number (DIN), which can be gained from the Ministry of Corporate Affairs (MCA).

Step 3: Choose a unique name of a company to register. The company name should be ended with “Producer Company Limited”. It stands on all the requirements that are given under the Companies Act, incorporation rules, and Trademark Act. And confirm that the name Has not already been chosen by any other organisation or company.

Step 4: It is mandatory to draft all the supportive documents like a Memorandum of Association (MoA) and Articles of Association (AoA).

Step 5: After filling, submit the (Simplified Proforma for Incorporating Company Electronically) SPICE+ form with the required documents to the Registrar of Company (ROC).

Step 6: When the ROC verifies that all the mandatory documents are completed and properly attested with the registration form, then the ROC will register the producer limited company and issue the Certificate of incorporation, which officially recognises the company.

Additional Services

Form INC-35(AGILE-PRP-S) form is used to apply many registrations, including:

  • GSTIN registration

  • ESIC registration

  • EPFO registration

  • Profession Tax Registration

  • Opening bank account

  • PAN

  • TAN 

Conclusion

Starting a producer company in the field of agriculture requires a whole roadmap and careful planning with a legal framework. Producer Company offers access to entrepreneurs to establish their business in the field of agricultural production and gives access to engage in activities related to agriculture. The establishment of a producer company in India offers many opportunities for the farmers to unite under a formal structure and enhance their market influence. After forming the producer company, individuals can get many benefits and access to financial assistance.

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