A Producer Company is a company registered to deal with the primary production of its active member. The main objective of a Producer Company includes agriculture production, post-harvesting processing activities, procurement, selling and distribution, export of primary production of the members or import of goods for their benefit. It is mainly a cluster of farmers who come together to improve their income and standard of living.
In India, Producer Company can be registered with 10 or more individuals being producers or any 2 or more producer institutions; or its combination. The producer company is deemed to be a private limited company under the Companies Act. But the threshold limit of members is not applicable.
Separate legal identity
The producer company has a separate legal identity which makes it distinct from its members. The company can hold assets in its own name and sue others and being ued.
Benefits to members
(a.) Initially, members will receive only the amount for their produce on the basis of a price determined by the directors of the producer company. Such amount shall be disbursed in the form of cash/ kind/ equity shares to the members.
(b.) Members will also get the bonus shares in the same proportion they hold the equity shares in the producer company.
(c.) Members shall also receive patronage bonus. Patronage Bonus means the surplus income distribution among the members of producer company in proportion of their participation in business activities.
Limited Liability of owners
The liability of members of Producer Company is limited to the extent of their unpaid capital in the company. The members cannot be called upon to pay liability of company out of their personal assets.
Acceptance of deposits
A Producer Company is eligible to accept deposits in the form of recurring deposit or fixed deposit. It can also disburse loan among the members and farmers at a reasonable rate of interest.
Latest Passport size photograph of Shareholders and Directors
PAN Card: PAN Card of shareholders and Directors.
Identity Proof: Voter ID/ Passport/ Driving License of Shareholders and Directors.
Address Proof: Telephone Bill /Electricity Bill/ Latest Bank Account Statement of Shareholders and Directors.
Business Address Proof: Electricity Bill/ Telephone Bill of the registered office address in India.
NOC from owner: No Objection Certificate to be obtained from the owner(s) of registered office.
Rent Agreement: Rent Agreement of the registered office should be provided, if any.
Application for Digital Signature Certificate
1. Checking Name availability
2. Application for Name Reservation under “RUN“
3. Reservation of Name
1. Drafting of MOA, AOA& other required documents
2. Payment of Stamp Duty
3. Notarization of required documents
1. Filing application for company registration
2. Application for DIN Allotment
3. Application for PAN and TAN of company
1. Government processing time
2. Certificate of Incorporation
Verification of documents provided by you
Application for Name Approval (online RUN WEB Application on MCA Portal)
Obtaining DSC (Class-2) and DIN as required above. However, in new companies DIN can be obtained within SPICe + facility
Drafting of MOA and AOA and necessary affidavits and declarations to be filed with ROC
Filing of incorporation application in SPICe forms along with necessary attachments
Providing you Certificate of Incorporation