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A producer company is a type of company that is formed by 10 or more individuals or 2 or more producer institutions or a combination of both. The primary objective of a producer company is to carry on the activities related to production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary produce of the Members or import of goods or services for their benefit
Expert in Producer Company
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Overview of Producer Company
A producer company is a company incorporated for production, harvesting, procurement, grading, pooling, handling, marketing, selling, the export of primary produce of the Members, or import of goods or services for their benefit. Hence, a producer company primarily deals with agriculture & post-harvesting activities. The concept of producer companies was introduced to empower farmers.
- It can be formed by 10 or more producers or two or more producer institutions or a combination of 10 or more producers and producer institutions.
- It can only have equity capital, require a minimum of five directors and authorized capital of Rs. 5 lakh. The important point is to note that it cannot be converted into a public company but can be converted into a multistate co-operative society.
- Production businesses, marketing businesses, technical service businesses, financing businesses & infrastructure businesses providing services to producers can be registered as a producer companies.
- The process of registering a producer company is similar to a private limited company.
Advantages of Producer Company
|Separate legal Entity||A Producer company is considered as a separate legal entity for the law. Accordingly, it can hold property in its name, sue & be sued, borrow in its name, etc.|
|Limited Liability||The members are considered separate from the company. So, they are not liable for the creditors of the company.|
|No claim on Property of company||Since, it is considered as a juristic person, no member can claim any rights over the property of a Producer Company as long as it is going concern.|
|Perpetual Succession||The existence of a producer Company does get affected due to the departure or death of any member.|
Step 1: Obtaining DSC and DIN: Digital Signature Certificate(DSC) and Director Identification Number(DIN) is required for the proposed Directors of the Private Limited Company which is necessary to file the company registration documents. For this, you will only need to provide a few scanned documents and details; our representatives will fill out the form and submit it online. DIN and DSC can be obtained for the proposed Directors within 1 to 2 days.
Step 2: Name Approval: A minimum of one and a maximum of six proposed names must be submitted to the MCA. Subject to availability, naming guidelines and MCA processing time, Name Approval can be obtained in 2 to 3 working days.
Step 3: Drafting MOA and AOA Electronically: It takes 2 to 3 days to draft MOA and AOA Electronically in Spice MOA (INC-33) and Spice AOA (INC-34).
Step 4: Company Registration: After drafting the e-MOA and e-AOA, the incorporation Spice Form INC-32 is submitted along with a link form Spice MOA (INC-33) and Spice AOA (INC-34) to the MCA. MCA will usually approve the application for incorporation in 5 to 7 days, subject to their processing time. Please note that forms 49A and 49B have to be mandatorily applied with SPICe. If the same is not filed within 2 days of submitting SPICe (INC-32), the application for incorporation will be marked as ‘Invalid’.
For Directors & Shareholders
1. Self Attested PAN Card copy
2. Self Attested copy of any one of the Identity Proof(Voter’s ID/Passport/Driver’s License)
3. Self Attested copy of Address Proof in the name of the director (Any utility bill i.e., mobile bill/water bill/ electricity bill, or bank statement which should not be older than two months)
4. Passport-sized photograph
For Registered Office
1. Rent Agreement (Notarised: For rented property)
2. Sale Deed/Property Deed in English (in case of owned property)
3. No-objection Certificate from the property owner
4. Latest Electricity Bill / Mobile or Telephone Bill / Latest Bank Statement/Gas Bill
FAQ's Producer Company :-
At least 5 people are required to register a producer company in India.
Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and may be struck off from the register after some time. A struck-off Company can be revived for a period of up to 20 years.
It is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a DIN. It never expires and a person can have only one DIN.
It is an electronic version of a physical signature. It can be used to verify documents in the company registration process.
The books of a producer company need to be audited from its very first year. And in the case of the turnover crosses Rs. 5 crore, it must employ a full-time company secretary to manage its affairs.
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I have recently registered a Private Limited firm and was looking for a CA to take care of the filings, Startup India Certificate, and other formalities. I have received emails from legal Suvidha and a few others. I tried talking to them all. But, Mr. Mayank from Legal Suvidha was very impressive and was patient enough, prompt to answer all the queries. He has a very professional team and after the initial formalities, I started interacting with the team. It's not even 2 weeks but I really feel overwhelmed by their service and professionalism. I received my startup India certificate yesterday and my filings have been done promptly. The team at legal suvidha Ms. Nidhi, Ms. Priyanka, Ms. Koshika, and Ms. Saloni all show the same professionalism and are readily available to take care of the official filings and stuff. Overall a great experience till now and looking forward to a great journey!
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