What is the Producer Company?
A producer company is a type of company that is registered to engage in primary production related to farming activities, from production to selling and exporting. To incorporate a producer company, the relevant legislation is Part IXA of the Companies Act, 1956, unless a special act is introduced for such companies. A producer company can be registered with ten or more members who are producers, or with any two or more producer institutions, or a combination of both. Like any other company, the liability of its members is limited to the extent of their unpaid share capital. While the producer company is considered a private limited company under this Act, there is no threshold limit on the number of members.
Benefits of registering a farmer-producer organization
Special User Rights
If specified in the Articles of Association (AOA), active members of a producer company can receive special usage rights. The company can allocate appropriate instruments to active members to exercise these rights. The special usage rights may include rights related to the provision of extra produce by the active member or any other rights related to their produce.
Benefits to members
The Board determines the initial value of the produce that each member can receive. Any amount withheld may be distributed later in the form of cash or equity shares. Members are entitled to a limited return and may also be given bonus shares. Any surplus may be distributed as a patronage bonus.
Separate legal identity
Similar to other companies, a producer company also possesses a distinct legal identity. The company has ownership over its assets, liabilities, debts, privileges and rights. It is authorized to conduct business and own properties in its name. The company's existence, as well as its assets, liabilities, and rights and obligations, remain unaffected by changes in its members or directors.
NLimited Liability of owners
The liability of members and producer institutions towards the company's debts and obligations is limited, and their personal assets remain unaffected in case of losses or winding up. This assurance of limited liability enables producers to invest with lower risk in such businesses.
Documents required for producer company registration
Photograph
Latest Passport size photograph of Shareholders and Directors
PAN Card
PAN Card of shareholders and Directors.
Foreign nationals must provide a valid passport.
Identity Proof
Voter ID/ Passport/ Driving License of Shareholders and Directors
Address Proof
Telephone Bill /Electricity Bill/ Latest Bank Account Statement of Shareholders and Directors
Business Address Proof
Electricity Bill/ Telephone Bill of the registered office address in India
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
Register a producer company in 3 easy steps
1. Answer Quick Questions- Fill in our questionnaires that take less than 10 minutes
- Provide basic details & documents required for registration
- Make payment through secured payment gateways
- Assigned Relationship Manager .
- Procurement of Digital Signatures (DSC)
- Application for Name Reservation
- Documents drafting including MOA and AOA
- Application to grant license u/s 8
- Certificate of Incorporation
- All it takes is 15 – 18 working days*
Process to register a producer company online
Day 1- Application for Digital Signature Certificate
- Checking Name availability
- Application for Name Reservation under “RUN“
- Reservation of Name
- Drafting of MoA, AoA & other required documents
- Payment of Stamp Duty
- Notarization of required documents
- Filing application for company registration
- Application for DIN Allotment
- Application for PAN and TAN of company
- Government processing time
- Certificate of Incorporation
Explore incorporation of producer company
Frequently Asked Questions
- The main object of the company must be too as provided in Section 581B of Companies Act, 1956
- Minimum 10 individuals (who are a producer) or at least 2 producer institutes must subscribe the shares of the company
- Minimum 5 directors in the company, one of which must be Indian citizen and resident
- The registered office of the company must be situated in India
