Producer Company Registration establishes officially recognized organizations comprising farmers or agriculturists to enhance livelihoods, resource sustainability, and profitability. Registered under the Companies Act 2013, it operates democratically, giving each member equal decision-making power regardless of shareholding.
Brief About Producer Company Registration
Guide to Public Limited Company Registration
A Producer Company also referred to as a Farmer Producer Company, is an officially acknowledged organization composed of farmers or agriculturists. Its primary goal is to improve the livelihoods of its members and ensure the long-term viability of their resources, incomes, and profitability. Operating as a hybrid between private limited companies and cooperative societies, a farmer-producer company is registered under the Companies Act 2013. It functions with democratic governance principles, ensuring that each member or producer has an equal say in decision-making, regardless of the number of shares they hold.
Key Benefits of Producer Company Registration
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- Hybrid Structure
A Producer Company combines the professional management of a Private Limited Company with the mutual benefits of a Cooperative Society.- Ownership by Primary Producers
Ownership and membership are held exclusively by “primary producers” or “Producer Institutions,” ensuring that the organization remains focused on benefiting those involved in primary production. Member equity cannot be traded, safeguarding against takeovers or exploitation.
- Ownership by Primary Producers
- Professional Framework
While adhering to the clauses of a Private Limited Company, a Producer Company operates under specific clauses outlined in the Producer Company Act (referenced from 581-A to 581-ZL), providing a professional framework tailored to the needs of primary producers. - Limited Liability
In a Producer Company, members’ financial responsibility is capped at their share contribution. This implies that members’ assets are safeguarded against the company’s debts or financial setbacks, limiting their liability strictly to the amount they’ve invested in shares. - Minimal Capital Requirement
With a minimum paid-up capital of Rs. 1 Lakh and minimum authorized capital of Rs. 5 lakhs, it is easier to mobilize small capital for a Producer Company. - Flexibility in Membership
A minimum of 10 producers is required to form a Producer Company, with no limit on the maximum number of members. This flexibility allows even small groups of 10 individuals to establish a Producer Company, promoting accessibility. - No Government or Private Equity Stake
Producer Companies cannot have government or private equity stakes, preventing them from becoming public or deemed public limited companies. This ensures autonomy and professional functioning without external threats. - National Scope
Producer Companies can operate nationwide, providing flexibility to expand and conduct business freely and professionally.
Your Guide to Compliance and Business Success in MSME Sector
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Step 1
Obtain a Digital Signature Certificate (DSC)
The initial step is to acquire a Digital Signature Certificate (DSC) for all the proposed directors of the company. The DSC is an electronic signature used to submit e-forms online securely.
Step 2
Obtain Director Identification Number (DIN)
The next step involves obtaining the Director Identification Number (DIN) for each director. The DIN is a unique identifier for a director and is required for a director to be appointed in any company.
Step 3
Name Reservation
The name of the Producer Company must be unique and end with the words “Producer Company.” For name reservation, Form SPICe+ is filed with the Registrar of Companies (ROC), proposing two names in order of preference and the significance behind those names. The ROC will then approve one of the proposed names based on availability and compliance with naming standards.
Step 4
Filing of Incorporation Application
All the prepared documents and the application for incorporation are to be filed in Form SPICe+ with the ROC. The application must meticulously detail the company’s proposed structure, directors, and registered office.
Step 5
ROC Verification and Certificate of Incorporation
The ROC will scrutinize the application and the attached documents for compliance with legal requirements. Upon satisfaction, the ROC will issue the Certificate of Incorporation, proving that the company has been legally constituted. The company can then commence its business operations.
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Documents required for Producer Company Registration
Navigate the complexities of business setup effortlessly with our comprehensive document checklist. From identity verification to legal formalities, we cover all the essentials for a seamless registration process. Count on our expertise to guide you through every step, ensuring compliance and peace of mind as you embark on your entrepreneurial journey.
Documents required for Producer Company Registration
Navigate the complexities of business setup effortlessly with our comprehensive document checklist. From identity verification to legal formalities, we cover all the essentials for a seamless registration process. Count on our expertise to guide you through every step, ensuring compliance and peace of mind as you embark on your entrepreneurial journey.
- Memorandum of Association (MoA) : This document outlines the primary, ancillary/subsidiary, and other objects of the company.
- Articles of Association (AoA) : This document lays down the by-laws on which the company will operate.
- Form INC-22 for the Registered Office
- Form DIR-12 for Directors Appointment
- Affidavit : File Affidavits (if necessary): If any of the subscribers to the Memorandum of Association have signed in Hindi, file Form INC-7 containing affidavits as required. All subscribers to the proposed company must sign an affidavit declaring their legal competency to act as subscribers.
- Execute Power of Attorney : Execute a Power of Attorney in favour of a consultant or authorized person, empowering them to make necessary changes in the MoA and AoA as required by the RoC.
- Registered Office Proof : If the registered office location is owned by one of the directors, a utility bill and a No Objection Certificate (NOC) from the owner is required. A lease agreement and a NOC from the landlord must be attached if the premises are rented.
