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Producer Company Registration

  • Producer companies can be registered for farming and agriculture by those involved in agricultural activities.
  • It takes less than a week for Producer Company Registration
  • Guaranteed Satisfaction and Lowest Fees Across India

Required Documents

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4 proposed names for company in order of preference

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DIN (Director Identification number) of directors (if available)

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DSC (Digital Signature) of directors/shareholders

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Self attested PAN Card copy of all directors and shareholders

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Self attested ID Proofs of directors & shareholders (Driving License/Voter ID/ Passport)

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Self attested address proof of directors & shareholders (Utility Bill/ Bank Statement/ Bank passbook copy)

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Passport size color photo of director & shareholders in JPEG format

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NOC from owner of premises or

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Rent/ Lease agreement of registered office (if leased/ rented)

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Utility bill in name of owner not older than 2 months

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Occupation and educational qualification, place of birth and nationality

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Mobile no. and email id of directors and shareholders

What we will deliver

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DIN for 5 directors

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DSC for directors/ subscribers

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Name approval of company- RUN WEB FORM/ SPICe+

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Memorandum of Association/ Article of Association of Company

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Certificate of Incorporation

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Mandatory PAN of Company (e-PAN Card)

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Mandatory TAN of Company (e-TAN letter)

Eligibility Criteria

Minimum 5 directors, Maximum 15 directors

Minimum 10 producers or 2 producer institutions, No maximum limit of members

Director and Shareholder may or may not be the same persons

Minimum capital requirement is Rs. 5 Lakhs

DIN of the directors (if available)

Digital Signature of subscribers/directors

Registration only as a private company

Name of Company to end with words “Producer Company Limited”

Required Documents

4 proposed names for company in order of preference

DIN (Director Identification number) of directors (if available)

DSC (Digital Signature) of directors/shareholders

Self attested PAN Card copy of all directors and shareholders

Self attested ID Proofs of directors & shareholders (Driving License/Voter ID/ Passport)

Self attested address proof of directors & shareholders (Utility Bill/ Bank Statement/ Bank passbook copy)

Passport size color photo of director & shareholders in JPEG format

NOC from owner of premises or

Rent/ Lease agreement of registered office (if leased/ rented)

Utility bill in name of owner not older than 2 months

Occupation and educational qualification, place of birth and nationality

Mobile no. and email id of directors and shareholders

Step by Step Procedure of Producer Company Registration

STEP 1

Verification of documents provided by you

STEP 2

Application for Name Approval (online RUN WEB Application on MCA Portal)

STEP 3

Obtaining DSC (Class-2) and DIN as required above. However, in new companies DIN can be obtained within SPICe + facility

STEP 4

Drafting of MOA and AOA and necessary affidavits and declarations to be filed with ROC

STEP 5

Filing of incorporation application in SPICe forms along with necessary attachments

STEP 6

Providing you Certificate of Incorporation

What we will deliver

DIN for 5 directors

DSC for directors/ subscribers

Name approval of company- RUN WEB FORM/ SPICe+

Memorandum of Association/ Article of Association of Company

Certificate of Incorporation

Mandatory PAN of Company (e-PAN Card)

Mandatory TAN of Company (e-TAN letter)

Benefits of Producer Company Registration

  • 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 sued.

  • 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.

Frequently Asked Question

Who is “Producer” for the purpose of registering a Producer Company?

“Producer” means any person engaged in any activity connected with or relatable to primary produce.

“Primary produce” means:

  • Produce of farmers, arising from agriculture (including animal husbandry, horticulture, floriculture, forestry, forest products, re-vegetation, bee raising and farming plantation products), or from any other primary activity or service which promotes the interest of the farmers or consumers; or
  • Produce of persons engaged in handloom, handicraft and other cottage industries
  • Any product resulting from any of the above activities, including by-products of such products
  • Any product resulting from an ancillary activity that would assist or promote any of the aforesaid activities or anything ancillary thereto

What are the activities which can be pursued by a Producer Company?

Following activities can be performed by a Producer Company:-

  • Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of members 
    Provided that the above activities shall be carried on by producer company either by itself or through other institution
  • Processing including preserving, drying, distilling, brewing, venting, canning and packaging of produce
  • Manufacture, supply of machinery, equipments or consumables to members
  • Imparting education on mutual assistance principles to members
  • Providing technical services, consultancy services, training, research and Development etc. for promoting interest of its members
  • Insurance of producers and/or their primary produce
  • Promotion of mutual assistance techniques
  • Any other activities ancillary or incidental to above activities
  • Extending credit facilities of financing for any of the above activities

Whether Producer Company is Private Limited Company or Public Limited Company?

The name of the Producer Company ends as Producer Company Limited which seems to be a Public Limited Company however as per section 581C of the Companies Act 1956, Producer Company registration shall be considered as body corporate which will under any circumstance not be deemed as Public Limited Company.

Who can become a member of a Producer Company?

"Producer" or "Producer institution" can become a member of a Producer Company. Further, there is no limit for maximum number of members. A Producer Company can issue only equity shares to its members.

Can foreign national be appointed as a director in a Producer Company?

Yes, a foreign national can be appointed as a director after obtaining valid DIN. However, one director must be an Indian Citizen who is resident in India.

What are the provisions regarding loans and investments made by the Producer Company?

Producer Company is formed by the number of individuals who are primary producers and in need of timely financial assistance. Therefore, a special provision was passed as per companies act for loan sanctioning to the members of the producer company.

Financial assistance can be provided to the members of the Producer Company through the following:-

  • Credit facility
    • The credit facility will be available to a member of the producer company for a period of not more than 6 months.

 

  • Loans and advances
    • Loan and advances will be issued to the members against security for a period of not more than 7 years from the date of loan disbursement.

 

  • NABARD (National Bank for Agriculture & Rural Development) Loan
    • To meet the requirement of the Producer Company, financial assistance is provided by the NABARD (National Bank for Agriculture & Rural Development). In the year 2011, Producer Organization Development Fund (PODF) of Rs. 50 Crore has been set up by the NABARD out of the NABARD operating surplus.

Can Producer Company give special rights to its members?

The active members of the producer company may enjoy special user rights, if provided in the AOA of the company. The company may issue appropriate instruments to active members in respect of such rights. The special use rights refer to any right relating to the supply of additional produce by the active Member or any other right relating to his produce.

Can shares of the producer company be transferred?

Yes, a member of Producer Company can transfer his shares along with special rights, if any, after obtaining the approval of the BOD.

Can a nominee be appointed by the members in a Producer Company?

Within 3 months of becoming a member of the Producer Company, the member shall nominate a person in a specified manner to which shares will vest in case of death.

What will happen in a case member of the producer company ceased to become a primary Producer?

In case member ceased to be a primary producer, directors of the Producer Company will direct the surrender of shares at par value or the at the value determined by the directors together with special right attached if any. It will be done only when written notice is served by the member and an opportunity of being heard is given.

What are the internal audit requirements in case of Producer Company?

An internal audit of the Producer Company will be carried out by a CA in practice. Further, an annual audit report shall be submitted by auditor after proper examination of the books of accounts to the members of the producer company