Producer Company Registration in India- Overview
The economy of India is an agricultural centric economy which implies that majority of the population, around 60% depends on agricultural activities for their livelihood. But the primary producers and farmers have had a long year struggle in India. A producer company may be defined as a legally recognized entity of farmers/ agriculturists with the objective to improve the standard of their living and ensure increase in income and profitability. Producer Company Registration in India, under Companies Act 1956, can be established by 10 individuals or more or 2 institutions or more or by a combination of both 10 individuals and 2 institutions having their business objective as one of the following: Procurement, Production, Harvesting, Grading, Pooling, Handling, Marketing, Selling or Export.
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Producer Company Registration Package
Rs.20,000/-+18% GST
- What we provide
- Documents required
- Certificate of Incorporation (CIN)
- Permanent Account Number (PAN)
- Memorandum of Association (eMOA)
- Articles of Association (eAOA)
- Director’s Identification Number (DIN No)
- Digital Signature (DSC)
- Goods and Service Tax (GST) Registration
- Help to open Bank Account
- Provident Fund (PF)
- Employees State Insurance (ESIC)
- Required two names of the Company
- Companie's Object
- Office Address Proof (Electric Bill / Rent Agreement / Gas Connection Bill / Landline Bill, etc.)
- Director's PAN, Aadhar, Mail, Mobile, Photo
- Director's Electric Bill / Last 1 month Bank statement
- Company Email id and Mobile Number
- Share Percentage
Types of Producer Companies
- 1. Production Business: This type of business deals with production, manufacturing and procurement of primary produce of the company.
- 2. Marketing Businesses: It is a business involved in marketing and promoting the primary produce or provision of educational services.
- 3. Technical Service: Any business that offers technical assistance to the producers, imparts training and educational services, or conducts research and development can register as a Producer in India.
- 4. Finance Business: A business that provides financial assistance in different categories to the companies mentioned in this list can register itself as a producer company.
- 5. Infrastructure business: The business involved in providing infrastructure to the producers, in the form of electricity, water resources, irrigation or consultation regarding the same, may also register themself as a Producer company.
Registration Process for Producer Company
The following guide contains the Producer Company Registration process.
- 1. The first step is to obtain the DSC and DIN of all the directors.
- 2. An application for name reservation is to be filed with the Registrar of Companies (ROC).
- 3. The name must have the suffix 'Producer Limited Company'.
- 4. After receiving the name approval from ROC, file the incorporation application in the prescribed format for incorporating the Producer company.
- 5. Drafting of MoA and AoA.
- 6. The Certificate of Incorporation is issued by ROC after complete verification.
Documents Required for Producer Company Registration
Let us look at the documents required for incorporation of Producer Company.
For Directors and Shareholders:-
- Copy of PAN Card
- Copy of Voter’s Id/ Passport/ Driver's license
- Copy of the latest bank statement/ Telephone or mobile bill/ electricity or gas bill or other utility bill
- Recent Passport size photograph
For the Registered Office:-
- Copy of the Latest Bank Statement/ Telephone bill or other utility bill
- Copy of the notarized rental agreement
- Copy of the NOC from the property owner
- Copy of sale deed or property deed
Producer Company Registration - Advantages
The benefits of Producer Company are given below: -
Separate Legal Entity
A Producer Company is a legitimate and a juristic entity developed under the Act. Therefore, a producer Company has an extensive legally recognized boundaries and can declare property and also obtain obligations. The members or the directors of a producer entity have no obligation to the company's lenders as it is a separate legal entity.
Tax Benefits
If the companies are registered as farmer-producer companies then 100% deduction is eligible to the companies with an annual turnover of Rs. 100 crore and companies earning profit out of the same will not have to pay any tax. The Government of India has extended the advantages of Producer Company to 100% deduction to farmer as the farmers are the biggest contributors of our economy and reason behind its growth.
Simple Management
With basic structures of the company documented with the Registrar of Companies they can effectively change the Board of Management of the producer organization. The Board of Management of a producer company controls and manages the functions easily.
Loans and Investment
The Government offers support to these members of the producer companies with the finances as they are the initial producers and they require funding from time to time. Hence, the Government has established NABARD for the benefits of Producer Company for farmers’. The objective is to provide loans to the farmers for a time period not extending beyond six months to meet their needs.
Good Governance
The Government ensures that the interest of the members of the producer organization for the success of the organization is fulfilled.
Support for Procedure Company
SFAC, NABARD, Departments of Government, Corporate, Domestic and International Aid Offices provide financial aid and support to the Producer Organization Promoting Establishment (POPI) for the purpose of advancement of the producer companies.
Better Facilities
The members working in the benefits of Producer Company are entitled to government facilities like MNREGA, Pension, loan, PDS, and Scholarship.
Timeline for Producer Company Registration
Generally, it takes about 10 to 15 days to register a Producer Company.
Cost of Producer Company Registration in India
The Producer Company Registration fees ranges from Rs. 15,000 to Rs. 25,000 excluding GST.
Why Choose TAX SEVA KENDRA-An Online Producer Company Registration Consultant in India
TAX SEVA KENDRA is committed to helping entrepreneurs start, manage and grow their business with peace of mind at an affordable price. We possess years of experience in registration of Producer Companies in various regions of India. We focus in educating the entrepreneur on the legal and regulatory requirements and be a partner throughout the entire business life cycle, offering support to the company at every stage to make sure they are compliant.
FAQ Producer Company Registration
What is the minimum number of members required to register a Producer Company?
Minimum 5 people are required to register a Producer Company.
What are the documents needed for Producer Company Registration?
You are required to provide the following documents:
Identity proof and address proof for all the proposed Directors of the Producer Company.
PAN Card is mandatory
In addition, the owner of the registered office must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.
What is the time taken for registering a Producer Company?
We take about 10 to 15 days. The time taken for registration does depend on submission of relevant documents by the client and speed of Government Approvals.
What is the minimum capital required to form a Producer Company?
The minimum capital required is Rs. 5 lakhs.
Who can form a Producer Organization?
Any 10 or more producers 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.
Where are the provisions related to producer company prescribed?
The provisions related to the producer company are prescribed under section 581 of the Companies Act, 1956. These provisions have been incorporated under section 465(1) of the Companies Act, 2013.
What compliances have to be adhered by a producer company?
The producer company has to abide by the following compliances:
- Get its annual accounts audited by an authorized chartered accountant
- Hold minimum of four board meetings annually
- File Income Tax Returns
- ROC and MCA compliance.
Are the shares of the members in a producer company transferable?
Yes, but the shares can only be transferred to an active member and not an outsider.
What is the term of a director in a producer company?
The Director shall hold his office for a period not less than 1 year but not more than 5 years. Every director shall be eligible for reappointment. The Directors of the Board are appointed by the members in the Annual General Meeting.
What will happen if a member ceases to be in the list of producer company?
In case the member ceases to be a part of the producer company, then the directors will notify the member to give up the shares of that member. A written notice will be sent by the directors to the member of the company.
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