Producer Company Registration
Fee: Rs. 33,000 (All Incl).
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Producer Company Registration
A producer company is a legally recognized body of farmers / agriculturists. Its more like a farmers collective. The primary aim of this company is to elevate the quality of life of the members along with profitability for the company. It is formed under Companies Act 1956. When a producer company registration is done, it requires at least 10 individuals as members sharing a common objective or any two or more producer institutions; or its combination for the company. The objectives can be any one of the activities or a combination of all these activities listed below:
- Procurement
- Production
- Harvesting
- Grading
- Pooling
- Handling
- Marketing
- Selling, or
- Export
Similar to any other company, the liability of its members is limited to the extent of unpaid share capital by its members. The producer company is deemed to be a private limited company under this Act, except the threshold of the number of members and directors in the company.
ADVANTAGES
Advantages of registering a producer company
A producer company is a legitimate entity and can operate for the profit and benefit of the members in the company. The individuals (Directors) of a producer company have no obligation to the lenders of a producer organization.
The members and the producer institutions have limited liability towards the debts and obligations of the company. This is a huge advantage, and this also ensures their personal assets remain unaffected in any case of loss or winding up.
All the members in a producer company are usually initial producers with a need for finance for their farm product. NABARD provides this support and is specifically created for producer companies. This bank offers loans to the farmers for a period not extending six months to meets the needs of the procedure companies.
Subject to the agricultural activity carried out by the producer company, certain tax benefits and exemption can be availed. There are different benefits for different activities. In short, the tax benefit and exemption to a producer company is totally depending upon the activity it carries on.
ONLINE REGISTRATION
Documents for registration of Producer Company
THE PROCEDURE
Producer Company Registration Process in India
There are a series of steps before the company formation is completed. They are listed below for easy reference. The entire procedure takes 10 to 12 working days to complete (Based on standard government processing time).
- Apply for Digital Signature Certificate (DSC)
- Check Name Availability & Reserve name through “RUN”
- AoA and MoA draft to be prepared with other documents.
- Payment of Stamp Duty & notarising the documents.
- File application for company registration
- Apply for DIN Allotment & PAN and TAN of company
- Certificate of Incorporation issued by the Government
FREQUENTLY ASKED QUESTIONS
Producer Company Registration
What are the minimum requirements to register a Producer company in India?
The requirements are very simple and straightforward for a producer company registration:
- The primary object of the company must be to promote its produce for selling or even exporting as provided in Section 581B of Companies Act, 1956
- Minimum 10 individuals (who are a producer) or at least 2 producer institutes must subscribe to the shares of the company
- Minimum 5 directors in the company in necessary and a maximum of 15 directors is permitted, one of whom must be resident Indian.
- The registered office of the company must be located in India
What is the minimum capital required?
A minimum of Rs. 5 Lakhs (Rs. 5,00,000) is required as capital for a producer company. With a minimum of 5 directors and a maximum of 15 directors in the company.
Is the registration procedure completely online?
Yes. The entire procedure is online and there is no need for the physical presence of any of the members during the registration process.
Is it permitted for NRIs/Foreign Nationals be a Director in a producer company?
Yes, an NRI or Foreign National can be a Director after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be an Indian citizen and a resident.
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