Startup Counter

THINGS TO KNOW BEFORE YOU REGISTER-PRODUCER COMPANY

producer company

INTRODUCTION:

  • Producer Company is a company registered under the Companies Act; 2013 and shall carry on any of the following activities:- Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of members or import of goods or services for their benefit; Processing including preserving, drying, distilling, brewing, venting, canning and packaging of produce of its members; and Manufacture, sale or supply of machinery, equipment or consumables mainly to its members. Producer Company can be formed only by producer. Minimum 5 directors are required to form a producer company.

Advantages:-

  • 1. The members of the producer company will be entitled to get bonus shares in the same proportion to the shares held by them.
    2. The surplus (after providing provision for payment of limited return and reserves) may be given as patronage bonus* to the members of the producer company.
    3. The Company can provide financial assistance to its members through:-The credit facility, to any member, in connection with the business of the Company, for a period not exceeding six months.
    4. NABARD Loan: NABARD has taken up the cause of supporting and to meet the needs of Producer Companies. It set up a Rs. 50 crore Producer Organisation Development Fund (PODF) in 2011, out of its operating surplus.

Documents Required:-

  • 1. Copy of PAN Card of all the directors
    2. Passport size photographs of the directors
    3. Copy of the voter identity card/Aadhaar Card
    4. Copy of the Rent agreement(If it is a rented property)
    5. Water/Electricity bill (Business Place)
    6. Copy of the Property papers (If owned property)
    7. Landlord NOC

BASIC

All Inclusive Fees
68799
  •  

PRO

All Inclusive Fees
72799
  •  

PREMIUM

All Inclusive Fees
78799
  •  

Procedure:-

  • 1. Choose a name. The name shall have the words PRODUCER COMPANY at the end.
    2. Have a Company address
    3. Appoint minimum of 10 members out of which appointment of five directors is mandatory.
    4. Register Producer Company with MCA.
       a.  Making of DINs and DSCs
       b.  Drafting of the perfect MOA and AOA of the Producer Company
       c.  Filing application for Incorporation of the company

FAQs:-

Producer Company is a company registered under the Companies Act, 2013, which has the objective of production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit.

 As the minimum numbers of members are more than 10, SPICE forms cannot be used for formation of Producer Companies. Producer Company is incorporated through Form INC – 7, Form DIR – 12 and Form INC – 22.

This isn’t required. The entire process is now automated and handled online. You will receive the DIN numbers and Certificate of Incorporation by e-mail from Ministry of Corporate Affairs (MCA).

Expect it to take 35 to 40 days to complete the entire procedure. This will, however, depend on whether you have all your papers in order and the workload of the RoC.

Most importantly, all directors must have an identity and address proof and rights to practice on the property they are operating on. The owner of the registered office will also need to submit an NoC, stating that the company may operate from that location.

. Yes, a producer company must have its books audited from its very first year. And in case turnover crosses Rs. 5 crore, it must employ a full-time company secretary to manage its affairs.

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