Producer Company

  • Name of the Proposed Company
  • Significance of the Name
  • Objective of the Business
  • DIN of directors (if available)
  • Class II Digital Signatures
  • KYC of promoters
  • Identity Proof of directors
  • Address Proof of Directors
  • Authorised Capital Structure
  • Address of Registered Office alongwith proofs
  • NoC from the owner of the Registered Office of the Company
  • Additional documents required depending upon the case.
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WHAT?

Producer Company is a company incorporated under the provisions of the Companies Act, 2013 but still governed by the provisions of Part IX A of the Companies Act,1956 (section 465(1) of the Companies Act, 2013) as if the Companies Act, 1956 has not been repealed until a special Act is enacted for Producer Companies. A Producer Company is thus a body corporate which deal primarily with the produce of its active Members with the main objective of production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit.

A Producer Company is allowed to carry on any of the following activities by itself or through other entities – on behalf of the members:
  1. Processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its Members
  2. Manufacture, sale or supply of machinery, equipment or consumables mainly to its Member
  3. Providing education on the mutual assistance principles to its Members and others
  4. Rendering technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its Members
  5. Generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce
  6. Insurance of producers or their primary produce
  7. Promoting techniques of mutuality and mutual assistance
  8. Welfare measures or facilities for the benefit of Members as may be decided by the Board
  9. Any other activity, ancillary or incidental to any of the activities referred to in clauses (a) to (h) or other activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner
  10. Financing of procurement, processing, marketing or other activities specified in clauses (a) to (i) which include extending of credit facilities or any other financial services to its Members.
FEATURES
Key features of a Producer Company are:
  1. Minimum 10 members are required for the incorporation of a Producer Company and no limit on maximum number of members.
  2. A minimum capital of Rs. 500,000 is required to incorporate a producer company.
  3. A member has a limited liability in the company, limited to the amount of shares held in the company.
  4. It is formed for the benefits of its own members.
  5. Minimum FIVE and Maximum FIFTEEN Directors are required for formation of a Producer Company.
  6. Producer Company is treated as Private Limited Company and shall never become or deemed to be a Public Limited Company.
  7. Though there is no such specific provision for providing special benefits to producer company under the Income Tax Act, 1961, however, depending upon the kind of agricultural activity a producer company carries on, certain tax benefits can be availed.
HOW?

A producer Company is registered under the provisions of the Companies Act, 2013 through the procedure prescribed under the Act and Rules and Regulations made there under.

  • Step1: Name Approval: - The proposed name of the Company is applied by the promoter by paying requisite fee online through RUN(Reserve Unique Name) Web Service. The applied name will be processed by the Central Registration Centre(CRC) and thereafter approval or rejection will communicated to the applicant.
    To avoid rejection the name should be as per the guidelines provided under Companies (Incorporation) Rules, 2014.
    Once the name is approved the said name will be available for 20 days within which the incorporation process has to be completed.
    The name of the producer company must end with the words "Producer Company Limited.
  • Obtaining Digital Signatures: - Digital Signatures of the all the members and any one Directors (if members and directors are different) needs to be obtained for the incorporation of the Company. For obtaining the Digital Signatures following KYC details are required:
    1. Identity Proof, i.e., PAN Card (Self Attested)
    2. Address Proof, i.e., Aadhar Card (Self Attested)
    3. Photographs
    4. Valid Phone Number
    5. Valid E-mail id
  • Step 3: Documents Preparation: - Once the name gets approved by the department, the documents are prepared as per the guidelines given under the Act for the incorporation of the Company.
  • Step 4: Incorporation: - Incorporation of the Company is done through e-form namely Simplified Proforma for Incorporating Company electronically (SPICEe). Thus, after preparation of documents Form SPICe - INC-32 will be filed along with eMOA (INC-33) and eAOA (INC-34) with the Central Registration Centre(CRC) of Ministry of Corporate Affairs by paying the requisite Stamp duty charges.
  • Step 5: Certificate of Incorporation: - Once the entire process is completed and the concerned department is satisfied by the all the compliances, the Certificate of Incorporation will be issued along with the allotment of PAN (Permanent Account Number) and TAN (Tax Deduction Account Number) of the Company, after which the proposed company will become a separate legal entity to transact the business in its own name.