A Producer Company is a unique corporate body delineated under section 581B of the Companies Act, 1956. It's structured to facilitate activities related to various agricultural, post-harvest processing, and primary production realms.
Producer Companies aim at a range of objectives including but not limited to:
Such a company can be formed by either:
Upon meeting specific standards and submitting the required documents, the registrar authenticates the company's formation by issuing an incorporation certificate within a month.
The essential nature of a Producer Company revolves around catering to the post-harvest and agricultural requirements of its members. It's designed to aid in various stages like production, grading, pooling, handling, selling, and marketing of the primary products generated by its member producers.
Producer Companies are instrumental for the small and marginal farmers in India, which constitute about 85% of the farming community. These farmers usually own lands less than 2 acres, making it challenging for them to leverage modern technologies and practices. The establishment of producer companies offers an organized platform for farmers, enhancing their socio-economic status. The very essence of these companies is to uplift farmers by orchestrating them into agricultural groups, further organized as producer companies.
Every member in a producer company has a singular voting right, irrespective of their capital contribution. Shares of such companies are exclusive to the members and are non-transferrable. Governance in these companies demands a minimum of five directors, but it shouldn't exceed fifteen. Notably, producer entities or a combo of two such entities can initiate a producer company.
Producer Companies are multifaceted, engaging in a plethora of activities:
Registering a producer company comes with a myriad of advantages:
Registration of a producer company mandates certain criteria:
A Producer Company emphasizes solely on equity share capital, marking its unique nature in the corporate world.
For the registration of a Producer Company, various documents need to be submitted to the relevant authorities. These documents serve as essential proof and information necessary to establish the legal identity and functioning of the company. The required documents include:
Memorandum of Association (MOA) and Articles of Association (AOA): The MOA and AOA contain the company's objectives, rules, and by-laws, outlining its operational framework.
Identity and Address Proof of Directors: Documents proving the identity (such as Aadhar card, passport, etc.) and residential address (such as utility bills, bank statements, etc.) of all directors.
Address Proof for the Registered Office: Documents verifying the registered office address, such as rental agreement, utility bills, or property tax receipt.
PAN Card of the Company: Permanent Account Number (PAN) card issued by the Income Tax Department for the Producer Company.
Director Identification Number (DIN) for Directors: DIN allotted to the directors, which serves as an identifier for their directorial positions.
Digital Signature Certificate (DSC) for Directors: DSC used for digitally signing the incorporation documents.
Certificate of Incorporation: Proof of the company's incorporation issued by the Registrar of Companies (ROC).
Common Seal (if applicable): A seal used to emboss the company's documents and contracts.
Initiating the registration process for a Producer Company involves several sequential steps. Here's a step-by-step guide to apply for the registration of a Producer Company:
Step 1: Obtain Digital Signature Certificates (DSCs)
Acquire DSCs from authorized certifying authorities for all the proposed directors. These digital signatures are essential for filing the incorporation forms and require class 3 certificates.
Step 2: Obtain Director Identification Number (DIN)
Apply for DIN for individuals intending to become directors in the Producer Company. A single DIN can be used for directorship in multiple companies.
Step 3: Name Approval Process
Choose a unique and appropriate name for the Producer Company and apply for its approval via the SPICe+ Form or directly with the Registrar of Companies (ROC). Ensure the chosen name aligns with naming conventions and isn’t identical to existing entities.
Step 4: Fill Form SPICe+ (INC-32)
Complete the SPICe+ form available on the Ministry of Corporate Affairs (MCA) portal post name approval. Furnish details related to DIN, name reservation, company incorporation, PAN, TAN, EPFO, ESIC, professional tax, and bank account opening.
Step 5: File e-MoA(INC-33) and e-AoA (INC-34)
Submit the electronic versions of the Memorandum of Association (MOA) and Articles of Association (AOA) along with Form SPICe+ (INC-32). Ensure the documents have proper digital signatures from the subscribers.
Step 6: Apply for PAN and TAN
Utilize SPICe+ to apply for the company's Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN). After submission, upon approval, the Certificate of Incorporation, PAN, and TAN will be emailed.
Upon completion of the document submission and verification process, the Ministry of Corporate Affairs (MCA) reviews the application and assigns a Corporate Identity Number (CIN) for the Producer Company.
Starting a Producer Company involves navigating various legal and administrative intricacies. Opting for Ecfile for your Producer Company registration offers several advantages:
1. Expertise and Comprehensive Support:
Ecfile boasts a team of experts well-versed in the intricacies of Producer Company registration. They offer comprehensive guidance throughout the process, ensuring adherence to legal requirements and minimizing errors.
2. Streamlined Application Process:
With Ecfile's user-friendly platform, the application process becomes efficient and straightforward. The service simplifies complex procedures, making registration hassle-free.
3. Dedicated Assistance:
Ecfile provides dedicated support, promptly resolving queries and concerns. Their professionals ensure a hassle-free experience, guiding you through the regulatory formalities and ensuring compliance at every stage.
4. Compliance and Legal Adherence:
The service ensures adherence to legal requirements, preventing any pitfalls during the registration process. Ecfile helps navigate through the necessary compliance documents and procedures, ensuring a smooth registration process.
5. Timely Completion:
Ecfile focuses on timely completion of the registration process. Their efficient approach aims for prompt document submission, minimizing delays in acquiring necessary approvals and certifications.
Choosing Ecfile can significantly ease the burden of registration, offering reliable and expert guidance throughout the entire process.