Producer Company

Overview of the ProducerCompany Registration procedure in India:

Producer Company primarily aims to improve the economic condition of the country’s farmers. This type of company falls under the Companies Act of 1956. Concerning the poor financial situation, low production, and poor agricultural technology, the Producer Company assists the farmers of India. This is to uplift the farmers and spike the agricultural growth of India. Here are the aims that a Producer Company must target:-

• Harvesting
• Production
• Export
• Pooling
• Selling
• Handling
• Marketing
• Grading

Procurement

Advantages of registering a Producer Company:

The advantages of a Producer Company Registration are similar to that of a Private Limited Company. Let’s look at the benefits:-

• Limited Liability: The liability is fixed for the directors and members of a Producer Company. Their assets and money are secured, as they cannot be used to compensate for the company’s losses and debts.
• A Separate Legal Entity: Similar to a Private Limited Company, a Producer Company, is also considered a Separate Legal Entity. This means it acts as an artificial person who can purchase and sell assets in its name. It also has all the legal rights that an artificial person can have.
• Easy to operate: It is effortless to make adjustments to the board of a Producer Company as one has to fill out some forms and submit them to the ROC.
• Registration promotes credibility: As mentioned repeatedly, Eazy Startups experts recommend registering your company to promote your credibility in the market, as a registered company seems more legit than a non-registered one.

Requirements to fulfil while setting up a Producer Company:

There are requirements for setting up a Producer Company similar to a Private Limited Company:-

• Limit of Member count: There is no maximum limit to the number of members in a Producer Company. However, it cannot be registered without a minimum of 5 directors and ten members.
• Minimum Paid-up Capital: The minimum, completely paid up capital must be about five lakhs INR. The only capital that can be owned is equity share capital.
• Number of meetings: There should be at least four meetings every year, and it should be in intervals of every three months

There are some requirements that are different from Private Limited Company as well. Those are:-

• All of the members of the company should be primary producers.
• The liability of the members is limited to the amount that is unpaid as their investment.
• A Producer Company is viewed as a Private Limited Company per the Companies Act.
• There must be “Producer Company Limited” at the end of the name of such a company.
• Among all the members, only one individual can be engaged in farming activities and can be the company’s owner.

What are the documents required when registering your Producer Company?

Below is the list of documents demanded by the authorities when registering your Producer Company:-

• Passport Size Photographs of all the directors and members of the company.
• Aadhar Card/ Voter Card/ Passport/ Driving License of the directors and members as their identification proof
• Pan Card/ Passport/ Election ID Card of the directors and members
• Utility Bills as Address Proof of the office
• If on rent, then NOC and rental agreement from the landlord
• If own, then the Sales Deed of the property

Step by Step guide to the Registration Process:

The steps to be followed for the Registration of Producer Company are the same as Private Limited Company. Eazy Startups can help you through these steps and assist you in tackling any difficulties that might come along the way. These are the steps:-

• Obtaining the DSC and DIN for the directors of the company
• Checking for name availability and registering a unique name for the company
• Drafting and Filing MoA and AoA
• Applying PAN, TAN and Current Bank Account

Collecting the CIN from the ROC

Frequently Asked Questions