Producer Company Registration

Introduction

Unlock the potential of collective strength! Producer Companies bring together individuals or businesses involved in agriculture, post-harvest, or any other producer-related activity. Dive into the world of collaborative growth, empowerment, and structured business processes.

Producer companies share characteristics with cooperative societies. Incorporating Producer Companies and participating in their ownership is restricted to Principal Producers and Producer Institutions. People involved are called "Primary Producers" because they are involved in the Primary Produce process. In agriculture, primary produces include horticulture, animal husbandry, forest produce, forestry, re-vegetation, beekeeping, and plantation farming. It may also include goods produced by people working in cottage industries, such as handlooms and handicrafts, as well as by-products.

The Producer Company is a group of legally recognized farmers or agriculturists who aim to raise their living standards and ensure a good status for their incomes, assistance, and profitability. A Ten or more individuals or two or more institutions (or a mix of both) can establish a Producer Company, which has one of the following business objectives, such as marketing, grading, export, selling, etc.

 WHAT IS A PRODUCER COMPANY?

A Producer Company is a hybrid between a private limited company and a cooperative society, designed to help agriculturists, farmers, and producers join hands. It allows them to operate on a large scale without the regulatory complexities of larger corporate structures.

• Empowerment: Enables small producers to access resources and markets more effectively.

• Democratic Control: Managed by producers, for the producers.

• Economies of Scale: Bulk buying, selling, and optimized operations for better profitability.

• Limited Liability: The members' liability is limited, providing financial protection.

• Resource Access: Easier access to credits, technology, and innovations.

ELIGIBILITY TO REGISTER PRODUCER COMPANY

- It can be formed by 10 or more individual producers, 2 or more producer institutions, or any combination of both.

- The Producer Company must have a minimum of 5 directors.

- It must deal primarily in the production, procurement, or manufacture of any agricultural activity.

WHY CHOOSE CORPIQ FOR PRODUCER COMPANY?

- Seasoned Professionals: Benefit from our vast experience in Producer Company registrations.

- Transparent Pricing: Absolutely no hidden costs. You pay for what you get.

- Efficient Processing: Experience a streamlined registration journey.

- Unwavering Support: From pre-registration advice to post-registration procedures, we're with you all the way.

CHARACTERISTICS OF A PRODUCER COMPANY:

• If a registered producer firm is considered a private limited partnership, then it will be treated as such.
• It is possible to have up to 50 participants.
• The number of 'Primary Producers' needed to start a producer business is ten or more. Similar to private limited companies, they require two people to register.
• It is required to have a minimum authorized capital of INR 5 Lakh.
• There can be a maximum of five directors.
• A profit share will be calculated based on how much money is invested and how much the company contributes.
• Shareholders' liability is limited to the unpaid amount of their shares

 

PRODUCER COMPANY ADVANTAGES:

• Producer Companies are owned and operated by "principal producers" or "producer institutions," and member equity cannot be sold. This prevents anyone from taking over the business or destroying the livelihoods of the primary producers.
• Producer Company require a minimum of ten producers, but membership can be increased as needed, and the maximum number is unlimited. Therefore, a producer company can easily be formed even by ten people.
• It is not distinguishable from a regular private or limited company by the clauses listed in the Producer Company Act from 581-A to 581-ZL, but the provisions of the Private Limited Company Act will apply to producer firms (see the Producer Company Act for more information). As a result, a producer company has a professional structure.
• Members' personal assets are protected from business losses due to the restriction on their liability to the unpaid amount of their shares.

 

REGISTRATION OF PRODUCER COMPANIES: DOCUMENTS AND PROCESS

• To begin, all directors must obtain Digital Signature Certificates (DSC). To receive a DSC, you will need the following documents:
• Identity Card (Aadhar Card)
• PAN Card (Permanent Account Number)
• Phone number
• Email Id
• Passport size Photograph

• After receiving the DSC, file form DIR – 3 with self-attested identification, address, and a photograph to receive the Director Identification Number (DIN)
• It is then necessary to finalize the name of the production company. Fill out Form Spice Part A detailing 2 names in order of preference as well as their importance, and submit it to the Registrar of Companies (ROC). The name must conclude with the words PRODUCER COMPANY.
• For company incorporation, prepare the following documents once the above steps are completed:
• Obtaining company incorporation requires the preparation of a Memorandum and Articles of Association.
• There is a requirement to write the professional declaration in the INC -8 format.
• Each subscriber must sign an affidavit stating that they are legally capable of taking part in the proposed company.
• Utility bills and a NOC are required from the owner of the address designated as the registered office. If the property is not owned, a lease agreement will be attached to the form.
• Directors are required to grant their consent to act by completing forms DIR-2 and DIR-8.

Attach all written documents to Form Spice Part B and upload them to the website of Ministry of Corporate Affairs. Once sufficient verification has been completed, the Registrar of Companies (ROC) will issue a Certificate of Incorporation (COI), and the company can begin operating.