Producer Company Registration

A Producer Company registered with the object of agriculture production, post-harvesting processing activities, procurement, selling and distribution, export of primary production of the members or import of goods for their benefit. Producer Company is aimed to empower farmers by creating a registered body.

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    Producer Company Registration

    A Producer Company is a blend of a Cooperative Society and a Private Company and is a company incorporated under the provisions of Part IX-A of the Companies Act, 1956, and also Section 465(1) of the Companies Act, 2013 to deal with the primary production of its active members related to farming. Further, the main objective or the purpose of a Producer Company includes selling, distribution and exporting of primary output.

    Furthermore, a Producer Company can be incorporated either with ten or more members being producers, or with two or more producer institutions, or by its combination. Moreover, like other business structures, the liability in a Producer Company is limited to the extent of the Unpaid Share Capital by its members. Therefore, a producer company is considered to be a Private Limited Company under the Companies Act, 2013. However, the ceiling on the maximum members does not apply to the same.

    Objectives of a Producer Company

    A Producer Company aims at encouraging all the small-scale farmers so that their level of savings can increase along with the power to opt for the latest and advanced technologies in order to lead better and improved lives. The following listed are the objectives or the reasons behind for incorporating a Producer Company:

    • Production of the primary agricultural produce
    • Procurement of the primary agricultural produce
    • Harvesting and Grading of the primary agricultural produce
    • Poling and Handling of the primary agricultural produce.
    • Marketing of the primary agricultural produce.
    • Selling or Import/Export activities concerning agricultural produce.

    Further, the main objective of a producer company is to simplify the formation of a Co-operative business as a private company and also to make it probable to convert an existing co-operative business into a private company.

    Advantages of a Producer Company Registration

    The advantages or the benefits annexed with the registration of a Producer Company is summarised below:

    • Producer Company enjoys the status of a separate legal entity
    • The liability of the members of a producer company is limited to the extent of the unpaid amount on the shares subscribed
    • Producer Company provides greater credibility to its members as compared to any unregistered organization of farmers or agriculturalists
    • Producer Company is providing the benefit of easy management. And in case the said company wants to change in its Board of management, the same can be informed to ROC (Registrar of Companies) just by filling simple forms
    • A registered producer company can easily acquire or sell property in its name
    • A producer company is qualified to accept deposits or give loans to the farmers at a reasonable rate of interest
    • A producer company is eligible to accept deposits in the form of FD (Fixed Deposits) or RD (Recurring Deposits)

    Mandatory Requirements regarding a Producer Company

    The requirements to obtain Producer Company Registration are explained below:

    • In a Producer Company, only those individuals are eligible to participate in ownership or who are engaged in any activity related to primary produce
    • All the members of a Producer Company must mandatorily be primary producers.
    • The liability of a member of a producer company is limited to the extent of the unpaid amount on the shares subscribed.
    • The name of a producer company must end with the suffix "Producer Company Limited."
    • Producer Company is deemed as a Private Company for the purpose of application of the law.
    • In the case of a Producer Company, there is no limit prescribed regarding the maximum number of members.

    Documents Required For Producer Company Registration

    • PAN Card of Directors
    • Identity Proof : Aadhar card and Voter ID/ Passport/ Driving License of Directors (document any one).
    • Director’s Address Proof : Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Directors
    • Latest Passport size photograph of Directors.
    • Business Address Proof : Latest Electricity Bill/ Telephone Bill of the registered office address
    • NOC from owner : No Objection Certificate to be obtained from the owner(s) of registered office
    • Rent Agreement : Rent Agreement of the registered office should be provided if any
    • Mobile Number and Email ID of Directors.