Producer Company Registration

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Producer Company Registration

In India, a Producer Company is a group of agriculturalists or farmers for the betterment of their living standards. We help to Incorporate the Producer Company in India without any hassle.

  • Free Incorporation Advisory by expert Chartered Accountant
  • DIN and DSC for all 5 Directors
  • Company Name Search and Name Approval
  • MOA and AOA of the Company
  • Government Registration Fees
  • Corporate Identification Number
  • Bank Account Opening

Online Producer Company Registration in India

In India, a Producer Company is a recognized group of farmers working together to enhance their living standards and ensure better support, income, and profitability. According to the Companies Act, 2013, this type of company can be formed by 10 people or more, two institutions or more, or a combination of both, all sharing a common business objective. Producer Company Registration in India is a straightforward process, but seeking expert assistance from services like GST Wala can simplify the entire registration procedure for you. The primary goal of a Producer Company is to collectively handle activities like procurement, pooling, production, marketing, harvesting, and selling of products and services for the benefit of its members. It serves as a bridge for transforming cooperatives into corporations, promoting cooperative development. The essence of a Farmer Producer Company in India is to uplift financially struggling farmers through collaboration and joint efforts.

What is a Farmer Producer Company?

It’s a hybrid between Cooperative Societies & Private Limited Companies registered under the Companies Act. They have democratic governance & each member has equal voting rights irrespective of the no. of shares held.

Activities Performed by a Producer Company in India

Following is the list of activities performed by a Producer Company in India:

  • Provide education to the mutual support principle to its members & others
  • Activities for the promotion of the interest of their members
  • Insurance of producers/their primary produce
  • Sale, supply, or manufacture of equipment, machinery, or consumables mainly to their members
  • Processing includes distilling, canning, preserving, brewing, packaging, drying & venting its members’ producer
  • Provide technical services, training, R&D, consultancy services & all other activities to promote its members’ interests
  • Promoting unique techniques of mutual & mutuality support
  • Financing of procurement, marketing, processing or other activities which comprise extending of the credit facilities or any other financial services to their members
  • Welfare measures/facilities for the members’ benefits as decided by the Board
  • Any other activity, similar to any of the actions which promote or encourage the principles of mutual support among the members in any different manner.

Different Types of Producer Companies in India

Following are the different types of Producer Companies in India:

1.Agricultural Producer Company

This type of Producer Company is set up by agriculturalists, farmers, or producers who are involved in the crop’s cultivation, poultry or dairy farming. The primary objective of an agricultural company is to increase the income of its members & improve their agricultural practices.

2.Sericulture Producer Company

It is set up by various individuals who are involved in the production of silk like silk reelers, weavers, or farmers. The primary objective of this Company is to improve the quality of silk produced, increase its availability & provide better marketing opportunities.

3. Horticultural Producer Company

It is established by individuals who are involved in horticulture like flowers, plants, growing fruits, or vegetables. The primary objective of this type of Company is to improve the quality of its products.

4. Handloom Producer Company

This type of Producer Company is set up by individuals who are involved in handloom weaving/handloom fabric production. The primary objective of a handloom company is to improve their products’ quality.

Advantages of Producer Company Registration in India

Following are some advantages of Producer Company Registration:

1. Separate Legal Entity

It’s a separate legal entity which means it can acquire assets & incur debts in its own name and the Directors of the Company have no obligation to the lender of the Company.

2. 100% Income Tax Exemption

In India, the Producer Company is exempted from paying Income Tax.

3. Loan Facility to Members

Producer Company can extend the financial & credit facility to its members.

4. More Credibility

This is offered to the registered companies as compared to the non-registered ones.

5. Ease in Management

The applicant can make desired alterations in the Board of Management by filing some simple form with regards to the ROC.

Checklist for the Registration of Producer Company

Following is the important checklist for Private Limited Company Registration in India:

  • A minimum of 2 Directors are required
  • A minimum capital of Rs. 5 lakhs required
  • Out of 10 members, at least 5 Directors are required
  • This Company can be established by the joining of at least 2 Institutions
  • Producer Company cannot be converted into a Public Limited Company.

Documents Required for the Registration of Producer Company

Following is the list of all the vital documents required for the Registration of Producer Company in India:

Documents of the applicant:

  • Latest passport-size photos
  • PAN Card
  • Identity Proof
  • Address Proof
  • Producer Activity Proof.

Premises Documents:

  • Proof of Registered Office Address
  • NOC from the owner
  • Rent Agreement or Property Documents

Other Legal Drafts:

  • Consent of Directors in Form DIR-2
  • Signed Subscriber Sheet
  • Questionnaire for Registration
  • Specimen Signature of Directors

Procedure for Producer Company Registration

Following is the list of all the vital documents required for the Registration of Producer Company in India:

  • Step 1: Obtain DSC: First, you need to obtain a DSC (Digital Signature Certificate), it is vital for signing the digital incorporation application.
  • Step 2: Choose a Unique Company Name: Then, you need to choose a unique name for your Company that aligns with the set name availability guidelines. At the time of the Producer Company Registration process, list your chosen names in the SPICe+ Part-A Form.
  • Step 3: Prepare all Requisite Documents: Once your Company Name is approved, then the next step is to prepare all the vital documents for Company Registration. At this step, MoA, AoA, INC-9, INC-10, DIR-2, etc., are prepared & shared for signature.
  • Step 4: File for Incorporation: Once all the vital documents are signed by the promoters then the next step is to file the Incorporation Form with SPICe+ INC-32 Form.
  • Step 5: Follow up and Approval: Once you have filed for the Registration, then the next step is to follow up with the Government. If all your Documents and application are fine then the Government will issue the Registration Certificate.

Post-Incorporation Compliance for Producer Company

Basically, there are 2 important compliance for Producer Company in India and following are 2 Producer Company Compliance:

1: Annual Report by Auditor

NDH-3 is a half-yearly return filed to check whether the Company is working under the prescribed rules or not. This Return is to be filed by 30th Sep & 31st Mar each year.

2: Internal Audit

This will be conducted at regular intervals by a CS, CA, Advocate, or CMA as per the AoA.

Loans & Investments under Producer Company

Following is the list of all the vital documents required for the Registration of Producer Company in India:

1: Loans & Advances

Loans & Advances are provided to the members against security, repayable within a period not more than 7 years from the date of loan disbursement of such loans or advances.

2: NABARD Loan

In India, NABARD provides support & financial support to meet the requirements of Producer Companies. In 2011, NABARD set up a Rs. 50 crores PODF out of its operating surplus.

3: Credit Facility

This is available to any member for a period of not more than 6 months (such facility must be in association with the business).

FAQs

A producer company is a specialized type of company formed by primary producers, such as farmers, artisans, and agricultural laborers, to collectively engage in various activities related to their produce.

Any primary producer or a group of primary producers involved in agricultural, horticultural, or related activities can become a member of a producer company.

The primary objectives include the production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary produce.

A minimum of ten eligible members is required to form and register a producer company.

The registration process involves submitting necessary documents, drafting the Memorandum and Articles of Association, and complying with regulatory requirements through a professional entity or consultancy.

Producer companies must adhere to compliance requirements related to meetings, financial reporting, and other statutory obligations under the Companies Act, 2013.

Yes, producer companies can issue equity shares to their members to raise capital for their operations and expansion.

No, there is no maximum limit to the number of members in a producer company.

Yes, producer companies have the flexibility to operate across multiple states in India.

Producer companies enjoy certain tax exemptions and deductions under the Income Tax Act, making their operations more tax-efficient.

Yes, with the approval of its members and following regulatory procedures, a producer company can change its objectives.

Producer companies must comply with dividend distribution restrictions specified under the Companies Act to ensure fair returns to members.

The Board of Directors is responsible for managing the affairs of the producer company and ensuring its compliance with laws and regulations.

Yes, every producer company is required to appoint an auditor to audit its financial statements annually.

Yes, subject to the approval of its members and regulatory authorities, a producer company can be converted into another type of company as per the Companies Act.

The benefits include enhanced access to credit, better marketing opportunities, improved bargaining power, and legal recognition as a collective entity, strengthening the position of primary producers.

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