Producer Company Registration

PRODUCER COMPANY:

Description: Any 10 or more producers (individuals) can join together to form a production company but there is no upper limit on the number of members. Or, any 2 or more producer institutions can form a producer company. A minimum capital of Rs. 500,000 is required to incorporate a producer company.

Types of Producer Companies

• Production Businesses: The main functions of producer companies are production, procurement or manufacture of any primary produce for its members (for further sale) and to others.
• Marketing Businesses: Even a business involved in the marketing or promotion of primary produce or provision of educational services to members and others can constitute itself as a producer company.
• Technical Service Businesses: Any business offering technical assistance to producers, providing training and educational services or conducting research and development can register as a producer company.
• Financing Businesses: Any business financing producer activities, be it in the production, marketing or development domain, can register itself as a producer company.
• Infrastructure Businesses: Businesses involved in providing infrastructure to producers, whether in the form of electricity, water resources, irrigation techniques, land utilisation, or consultation with regard to the same, may constitute themselves as a producer company.

Benefits of producer Company: It excels in the unique elements of a cooperative structure, having governing framework similar to that of a company. Such entity primarily refers to a registered corporate served by a group of individuals (mainly farmers) as its members.

• Deposit Acceptance: The prevailing bylaw permits the Producer Company to accept a deposit in the form of a fixed deposit or a recurring deposit.
• Loan Against Security: Farmer Producer companies are legally permitted to function as lending agencies. They are eligible to lend credit against the fixed deposits, gold and government securities.
• Profit Allocation to The Members: The profit or income generated by the farmer producer company remains within the organization and is distributed among the serving members.
• No Taxes On the Agricultural Income: As such, no taxes are levied on the profit generated by the Producer Company. Presently, these entities are exempted from addressing any tax obligations imposed by the IT department.
• Loan Facility to Members: Farmer Producer companies are legally eligible to disburse the credit to the founding members.

Documents required:

TO BE SUBMITTED BY DIRECTORS & SHAREHOLDERS

• Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
• Scanned copy of Voter’s ID/Passport/Driver’s License
• Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
• Passport-size Photograph
• Specimen signature (blank document with signature [directors only])

FOR THE REGISTERED OFFICE

• Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
• Scanned copy of Notarised Rental Agreement in English
• Scanned copy of No-objection Certificate from property owner
• Scanned copy of Sale Deed/Property Deed in English (in case of owned property)

Procedure for Producer Company Registration

• Step 1: Name Approval: First, the applicant needs to choose an appropriate name and legalise the proposed name through the SPICe+ form.

• Step 2: Obtain DSC and DIN: The next step in the procedure is to obtain DSC (Digital Signature Certificate) and DIN (Director Identification Number). Further, DSC is needed to sign the documents electronically or digitally, and the Certifying Authority issues the same. Also, DIN is required for all the proposed directors of the company. Furthermore, the same can be acquired by just filing the SPICe+ form as there is no need to file a separate Form.

• Step 3: Drafting of MOA and AOA: After obtaining the DSC & DIN, an application for incorporation is required to be filed in SPICe+ form together with all the necessary documents such as the MOA (Memorandum of Association), AOA (Article of Association), affidavit signed by all the members, and the declaration regarding the competency to act as legal subscribers of the company, with the respective ROC (Registrar of Companies).

• Step 4: Certificate of Incorporation: After verification of the documents and the application for incorporation submitted, a Certificate of Incorporation (COI) is issued by the ROC.Simple and Transparent Services after Registration:
  • Basic: 10 DSC, 10 DIN, 1 RUN Name Approval, Incorporation Fee, PAN, TAN, Share Certificates and Company Kit.
  • Standard: 10 DSC 10 DIN, Name Approval, Incorporation Fee, PAN, TAN, Share Certificates, Company Kit and 1 Year TDS Filings.
  • Premium: 10 DSC, 10 DIN, RUN Name Approval, Incorporation Fee, PAN, TAN, Share Certificates, Company Kit, 1 Year TDS Filings and Trademark Registration.