Producer Company Registration
In Producer Company, each member can have only one vote, he/ she can contribute different amounts of share capital to the Company. The shares of the Producer Company members cannot be transferred outside the membership. A Producer Company should have a minimum of 10 members or two producer entities or a combination thereof can form a Producer Company. By virtue of assigning equal voting rights to each member, the issues of management control by small and marginal producers has been resolved in the design of Producer Company.
Producer Company primarily deals with agriculture and post-harvest processing activities. It is mainly registered with the main object of production, harvesting, procurement, grading, pooling, handling, marketing, selling and export of primary produce of the Members or import of goods or services for their benefit.A Producer Company should have a minimum of 10 members or two producer entities or a combination thereof can form a Producer Company. By virtue of assigning equal voting rights to each member, the issues of management.
PRODUCER COMPANY REGISTRATION
Basic information
Producer Company primarily deals with agriculture and post-harvest processing activities. It is mainly registered with the main object of production, harvesting, procurement, grading, pooling, handling, marketing, selling and export of primary produce of the Members or import of goods or services for their benefit. Producer Company requires ten or more producers (individuals); or two or more producer institutions; or combination thereof. The members have necessarily to be primary producers. Producer Company shall have at least five and not more than fifteen directors over 85% of the Farmers in India are small and marginal farmers with land holdings of less than 2 hectares. This fragmentation in farmers and farm lands, leads to disorganization and it is not viable for Indian farmers to adopt the latest technologies. By organization of these farmers into producer companies, economies of scale can be unlocked and the livelihood of farmers can be improved. Thus the concept of Producer Company is aimed at empowering farmers by creating farming clusters organized as Producer Company.
What is the Producer Company ?
Agriculture is the very important sector of Indian Economy. Indian agriculture sector accounts for 18 % of India's Gross Domestic Product (GDP) and provides employment to around 50% of the countries workforce. Producer Company as a legal entity was enacted in 2003 as per section IX A of the Indian Companies Act 1956. Since the above enactment, the PC has been hailed as the organizational form that will empower and improve the bargaining power, net incomes, and quality of life of small and Marginal Farmers/ Producers in India.
In Producer Company, each member can have only one vote, he/ she can contribute different amounts of share capital to the Company. The shares of the Producer Company members cannot be transferred outside the membership. A Producer Company should have a minimum of 10 members or two producer entities or a combination thereof can form a Producer Company. By virtue of assigning equal voting rights to each member, the issues of management control by small and marginal producers has been resolved in the design of Producer Company.
What will you receive in Company registration package ?
- DIN of 5 Directors
- DSC of 10 Promoter
- Name Reservation
- MOA & AOA
- Incorporation Certificate
- Directors Appointment
- PAN
- TAN
- GST Registration
- Post Incorporation compliances
- Filing of Declaration of Commencement of Business
Advantages of Private Limited Company Registration
1.Separate Legal Entity (Management & ownership is separate):
Producer Company is a legal entity and a juristic person established under the Companies Act, 2013. Hence, a company has a wide range of legal capacities and the members (Shareholders/Directors) of a company have no personal liability to the creditors of a company for company's debts.
2. Perpetual succession gives longest business life:
Producer Company has 'perpetual succession', which means uninterrupted existence until it is legally dissolved. A company being a separate legal person, is unaffected by death or other departure of any member and it continues to be in existence irrespective of changes in ownership.
3.Large scale Borrowing Easily available:
Producer Companies can raise equity funds and/or borrowed funds both at very attractive rates and easily due to large asset base and recognition as Listed Companies. Various types od securities can be issued such as equity shares, preference shares, debentures, bonds, commercial papers and also can accept the deposits as per provisions of the Companies Act, 2013. Banks and Financial Institutions also give preference for funding to a large Public Limited Companies rather than partnership firms or proprietary concerns or small med sized Companies.
3. Owning Property in own name:
A Company being an artificial person, can acquire, own, and alienate, property in its own name. The property owned by a company could be machinery, building, intangible assets, land, residential property, factory, etc., No shareholder can make a claim upon the property of the company - as long as the company is a going concern.
What are the minimum requirements for Registering a Company in India?
- Minimum 5 Directors
- Minimum 10 Shareholders *
- There is no minimum capital requirements
- DSC of all the promoter - shareholders of proposed Company
- DIN of the Directors
- Unique Name for the proposed Company
- Registered office Address of the Company
* (The Directors and Shareholders can be the same or different persons.)
What is next after registration of Company ?
- Appointment of 1st Auditors
- Opening of Bank Accounts
- Filing of Declaration for Commencement of Business in form INC-20A
- Minutes of Board meeting and their committees
- GST registration of the Company
- Obtaining the IEC No.
- Trade Marks/ Copyright Registration
- Start up registration
- Share Certificates to the subscribers
- Statutory Registers preparations
- Filing of Form AOC-4
- Filing of Form MGT-7
What is the procedure for Company registration ?
Step 1: Obtain the DSC Tokens of all the shareholders
Step 2: Apply for Name Reservation
Step 3: Prepare and filing of Form Spice Form INC-32 for incorporation
Step 4: Obtain the Certificate of Registration
Step 5: File Form INC-20A for Declaration of Commencement of Business
The entire process for registration of Company will take at least 10 to 15 working days from the receipt of all the necessary documents and filing with the ROC.
Precautions to be taken while name reservation
- Meaningful: The name of your company should have some meaning even though more than two words combination is used. The name taken by the promoters of the Company should not be able to be challenged by anyone.
- Unique: It should not create resemblance with the existing Company or LLP names or even the Trade Marks (either registered or in the process of registration).
- Activity reflecting: In the name of your proposed Company, activity or main business object should be reflected or represented.
- Should not be illegal / offensive: The name of your company should not be against law. It should not be abusive or against the customs and beliefs of any religion.
Documents
Passport Photo
Passport Photo of all parties
PAN Card
PAN Card of all parties
Aadhaar Card
Aadhaar Card of all parties
Landlord NOC
Format will be provided
Rent agreement
Copy of Rent agreement (If rented property)
Electricity/ Gas bill
Bank Statement for Office of Company
Copy of Index II
Property Tax Receipt (If owned property)
Other Documents
Other documents will be intimated through e-mail.
FAQ
The Companies incorporated for carrying on the activities of production, harvesting, procurement, grading, pooling, handling, marketing, selling, importand export of primary produce of the Members or import of goods or services for their benefit. Produce are things that have been produced or grown, especially by farming.
Any ten or more individuals, each of them being a producer and/or farmer or any two or more Producer institutions, or a combination of ten or more such individuals and Producer institutions, desirous of forming a Producer Company having its objects of production, harvesting, procurement, grading, pooling, handling, marketing, selling, import and export of their primary produce, may incorporate the Company as a Producer Company under the Companies Act, 1956. Activities of the Producer Company include inter alia Milk Production, farming, Animal Husbandry, Horticulture, Floriculture, Pisciculture, Viticulture, Forestry, Re-vegetation, Bee rising: keep bees to collect honey
Tax Exemption on the agricultural activities Greater credibility on dealings Separate Legal Existence from its management body Limited Liabilityof members in liquidation Flexibility of Ownership Separation of Ownership and Management Perpetual Succession Easy huge to borrowings from the market
You are required to fill-in the Enquiry Form as mentioned on the screen and the required list of documents and quotation will be at your Figure Tips. No Charges are required to be paid.
The following types of Business entities are in existencein India: Private Limited Company Public Limited Company One Person Company Producer Company Section 8 Company Nidhi Limited Company Non-Banking Finance Companies Mutual Fund Companies Foreign Subsidiary Companies Chit Fund Companies Limited Liability Partnership Partnership Firm Sole Proprietorship
At leastFiveDirector At least TenShareholders(The Director and Shareholder can be same) DIN is included in the Incorporation process itself no separate requirements DSC (Digital Signature Certificate) for all the Subscribers to MOA Minimum Amount of Share Capital shall be INR. 1 Lakhs Documents as enlisted in the requirement list itself
A company registration process is a legal process that usually takes 20-45 days for registration subject to the appropriate jurisdictional authority and the receipt of incorporation documents from the clients.
The Memorandum of Association (MOA) states the main objects of the proposed company.The Articles of Association (AOA) on the other hand, contains the bylaws, rules and regulations and procedures for conducting the routine business operations and affairs of the Company. The Memorandum of Association and the Articles of Association of the Company are constitutional and important documents, however they cannot override the provisions contained in the Companies Act, 2013 and the rules made thereunder.
Authorized capital is the maximum amount of share capital with which a company is incorporated. Authorized capital can be increased by company at any time with shareholders’ approval. Paid-up share capital cannot be more than the authorised share capital.
Paid-up share capital of a company is that amount of capital which is issued to the subscribers and/or other shareholdersagainst which money towards such allotment of shares is paid by the shareholders. Paid-up capital will always be less than the authorized capital or registered capital.
It is unique Identification Number allotted to an individual who is an existing director of a company or intends to be appointed as director of a company pursuant to section 152 (3), 153 of the Companies Act, 2013. Every individual, intending to be appointed as a director of the company, will have to file an application for allotment of DIN in Form DIR-3. After filing of an application in the prescribed form the DIN approval letter will be sent through an Email to the applicant by the Ministry of Corporate Affairs.
Digital Signature Certificates (DSC) are the certificate in the electronic format issued by the Certifying Authorities containing the Identity details of an individual which are carried through the DSC Tokens similar to the Pen Drives. Digital certificate can be presented electronically to prove your identity and to sign digitally certain E-forms on the Government Portals like Ministry of Corporate Affairs, DGFT, Income Tax, RBI, etc.
Shop Act VAT Profession Tax Service Tax Provident Fund ESIC
Yes of course, registered office address of the company can be changed after acquiring a commercial space. The process of change of company address is very easy and it can be done within very short time if the new address is within the same city and the same jurisdictional ROC.
Yes, any of the Directors of the Company can be appointed as Manager or Managing Director (MD)under the provisions of the section 196 of the Companies Act, 2013 and can draw a salaryp.m. of p.a. as through Contract Of Service between the Company and the Manager or MD subject to certain terms and conditions mentioned in his/her employment agreement and that might require some professional help. Hence we would be delighted to serve you at our best.
Yes, an existing Company can be converted into other type of Company by complying with the provisions of Companies Act, 2013 such as; Private Limited into Public Limited and vice-versa Private or Public to Section 8 Company and vice-versa OPC to Private or Public Company From Private to OPC subject minimum criteria as specified in the Companies Act, 2013 From Company to Co-Operative Societies From Partnership or LLP or Proprietary into Company However, conversion from Company to other unregistered form of business is not allowed under the Companies Act, 2013
No Hidden charges. Every detail regarding charges is transparent as you can see in the Quotation file in your mailbox.