Producer Company is a corporate body having objectives or activities as specified under the Companies Act. It is formed by a group of individuals focused on the production of primary produce or having one or more objectives relating to primary produce like harvesting, production, selling, marketing, etc. A Producer Company can only have equity capital, and need a minimum of five directors and an authorized capital of Rs. 5 lakh.
Companies Act, 2013 has a very simplified process for producer company registration. Any entity who matches the prerequisites of Farmer Producer Company can apply for producer company registration. The process of forming a Producer company is similar to that of forming a private limited company.
Benefits of Registering a Producer Company
- Ease of Management A change in the board of a producer company can be easily done by filing simple forms with the Registrar of Companies.
- Better Borrowing Capacity When compared to sole proprietorship and partnership, producer companies have added benefit of better avenues for borrowing of funds.
- Business Continuity A producer company has ‘perpetual succession’, until it is legally dissolved.
- Separate Legal entity Separate Legal entity
- NABARD Loan NABARD has set up a Rs. 50 crore Producer Organization Development Fund (PODF) in 2011 for supporting and for meeting the needs of Producer Companies.
- Limited Liability Shareholders of Producer Company enjoy limited liability. In the event of the company facing financial distress, liability of the shareholder is limited to the unpaid amount on his shareholding and the personal assets of the shareholder is not at risk.
Apply for DSC & DIN for Directors
In order to file the Producer company registration documents, at least five directors must apply for a DSC. The directors has to be registered with the MCA
Company Name Reservation
Once the DSC is obtained a unique name for the company must be chosen following the guidelines for name selection and applied for with the concerned authorities.
MoA & AoA Document submission
Once the name of the company is approved, the MOA and AOA of the Company needs to be drafted. Both MOA and AOA are filed with the MCA.
Get incorporation certificate
Once all the application and relevant documents are scrutinized by the MCA incorporation certificate is issued.
Apply for company PAN & TAN
You need to apply for PAN and TAN for your company. Post receipt of PAN & TAN, you can submit the Incorporation certificate, MOA, AOA and PAN with bank to open your bank account.
- Copy of PAN Card of all directors
- Copy of Rent agreement(If rented property)
- Landlord NOC (Format will be provided)
- Passport size photograph of directors
- Electricity/ Water bill (Business Place)
- Copy of Aadhaar Card/ Voter identity card
- Copy of Property papers (If owned property)
- Farmer certificate for all Directors and members required
Bizpole experts make it easy and simple the whole process of your company registration at a minimal cost. Our experienced consultants are just a call away to clear all your queries.
Our package includes the following services.
- Apply for DINs & DSCs All directors must be registered with the MCA. We do the application on your behalf and do all the follow-ups until DIN & DSC are obtained.
- Company Name We will then help you with the name search and approval of the same from the relevant authority.
- MoA & AoA We will help draft your company's constitution.
- SPICe i.e. INC-32 Approval We take care of filing the application following all compliances. Once the approval is issued your company is incorporated
- Company PAN & TAN We will file the necessary documents and application to the NSDL to get your company’s PAN & TAN.