Producer Company Registration
A producer company is a corporate entity established primarily for activities related to production,
harvesting, procurement, grading, pooling, handling, marketing, selling, or export of primary
produce of its members, or import of goods or services for their benefit. These activities typically
revolve around agriculture and post-harvesting operations, aimed at empowering farmers.
The formation of a producer company can be initiated by 10 or more individual producers, two or
more producer institutions, or a combination thereof totalling 10 or more producers and producer
institutions. It operates solely with equity capital and mandates a minimum of five directors, with
an authorized capital requirement set at Rs. 5 lakhs. Notably, a producer company cannot be
converted into a public company but has the option to convert into a multistate cooperative society.
Producer companies encompass a range of activities including production, marketing, technical
services, financing, and infrastructure services that benefit producers. The registration process
for a producer company mirrors that of a private limited company, ensuring compliance with legal
procedures and regulatory frameworks.
This structured approach underpins the establishment of producer companies, facilitating their role
in supporting agricultural and rural development initiatives through organized and corporate-driven
efforts.
Documents Required for Producer Company Registration
The following documents are required for Directors & Shareholders
and for the Registered Office in the process of company
registration:
For Directors & Shareholders:
For Registered Office:
Producer Company Registration Process
The registration process for a Producer Company involves
several crucial steps:
Obtaining DSC and DIN
The initial step is to secure Digital Signature Certificates (DSC) and Director Identification
Numbers (DIN) for the proposed directors. These are essential for electronically signing and filing
company registration documents with the Ministry of Corporate Affairs (MCA). Our representatives
facilitate this process based on scanned documents provided by the directors, typically completing
DSC and DIN issuance within 1 to 2 days.
Name Approval
Next, a list comprising a minimum of one and a maximum of six proposed company names is submitted to
the MCA. This step ensures compliance with naming guidelines and allows for name availability
verification. Name Approval from the MCA is generally obtained within 2 to 3 working days.
Drafting MOA and AOA Electronically
The Memorandum of Association (MOA) and Articles of Association (AOA) are electronically drafted
using the SPICe MOA (INC-33) and SPICe AOA (INC-34) forms. This process typically requires 2 to 3
days to complete, detailing the company's objectives, operational structure, and internal
regulations.
Company Registration
Subsequently, the drafted e-MOA and e-AOA, along with the SPICe Form INC-32, are submitted to the
MCA for incorporation. This submission also includes forms 49A and 49B, which are mandatory
attachments. Upon receipt, the MCA reviews the application and typically approves the incorporation
within 5 to 7 days, subject to their processing timelines. It's crucial to ensure timely submission
of forms 49A and 49B within 2 days of filing SPICe (INC-32) to avoid invalidation of the
incorporation application.
These procedural steps ensure that the registration of the Producer Company complies with statutory
requirements, facilitating its legal establishment and operational commencement under Indian
corporate law.
Choose Lexprosoft for Your Producer Company Registration!
Opt for LexproSoft to register your Producer Company! Our experienced team will assist you at every
stage of the registration process, ensuring full compliance with legal norms and helping you
establish a solid foundation. With cost-effective services and complete support, we are dedicated to
fostering the growth of your business and empowering primary producers.
Contact our Experts today and take the first step towards your
startup success!
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Producer Company Registration FAQ's
What is a Producer Company?
A Producer Company is a type of company specifically formed by farmers, producers, or producers' cooperatives for the purpose of collectively producing, harvesting, processing, and marketing products. It aims to enhance the livelihood and income of its members.
Who can form a Producer Company?
A Producer Company can be formed by a group of 10 or more producers (individuals, cooperatives, or farmer producer organizations) engaged in similar agricultural or related activities, such as farming, dairy, poultry, or fishing.
What are the benefits of registering a Producer Company?
Legal recognition as a company, enhancing credibility.
Limited liability for members.
Access to government schemes and subsidies.
Collective marketing and procurement to improve bargaining power.
Income generation for members through collective production and selling.
Limited liability for members.
Access to government schemes and subsidies.
Collective marketing and procurement to improve bargaining power.
Income generation for members through collective production and selling.
What is the minimum number of members required for a Producer Company?
A minimum of 10 members is required for the registration of a Producer Company, with at least 5 members being individuals and the remaining members being cooperatives or producers' organizations.
How long does it take to register a Producer Company?
The registration process typically takes 10-15 working days, provided all required documents are submitted and the name is approved without issues.
How is a Producer Company taxed?
A Producer Company is taxed like a regular company. The tax rates for corporate entities apply, and the company must comply with GST and other applicable taxes. Additionally, any income distributed to members is subject to specific tax treatment.
What is the role of members in a Producer Company?
Members of a Producer Company are involved in:
Contributing to the capital and shares of the company.
Participating in the governance through voting rights.
Benefiting from the collective activities of the company (such as shared profits from production and sale).
Contributing to the capital and shares of the company.
Participating in the governance through voting rights.
Benefiting from the collective activities of the company (such as shared profits from production and sale).
Can a Producer Company take loans or issue shares?
Yes, a Producer Company can:
Raise loans for business expansion.
Issue shares to raise capital from its members.
However, the issuance of shares is typically restricted to members.
Raise loans for business expansion.
Issue shares to raise capital from its members.
However, the issuance of shares is typically restricted to members.
Can a Producer Company convert into a Private Limited Company?
Yes, a Producer Company can convert into a Private Limited Company under the Companies Act if certain conditions are met and if it no longer wants to operate as a producer-oriented entity.
What happens if the Producer Company has fewer than 10 members?
If a Producer Company falls below the minimum member count (10), the company can be dissolved or restructured to meet the minimum requirement, unless granted an extension by the Registrar.
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