A Producer Company deals primarily with agricultural produces and the post-harvest processing activities. Such a company may also export the produces of its agriculturist members and import goods/services for benefits to them. Thus, the basic concept behind establishment of a producer company is to create a cluster of farmers/agriculturists to improve their incomes and the status of their necessary support. Here, it may also be mentioned that, in a country like India where around 85% of the farmers are small and marginal with small land-holdings, these producer companies are certainly of great utility and importance, for uplifting their incomes, profitability of their business, and the standard of their living.
This carefully written concise web-article offers enlightening and useful information about the producer company registration in entire India, and exclusive advantages of this type of a company. The law firm of ours is a hugely popular and reliable firm of India for company registrations, legal services for all major categories of intellectual property, and business/commercial law services. Information regarding how to start a producer company are being provided in the section just below.
Procedure and Documents Required for Producer Company Registration
For formation of a producer company in India, there are required a minimum of Five Directors and Ten Shareholders/Members; there being no limit to the maximum number of its members. A minimum paid-up share capital of INR 5 Lac is also recommended. The procedure and documents required for producer company registration in India are being described below.
The entire procedure for incorporation of a producer company is the same as that for the majority of companies, and involves the following broad processes ---- name approval (INC-1), making of DSCs and DINs, filing the application for incorporation (INC-7), filing forms like DIR-12 and INC-22, and submission of all necessary documents. The integrated form INC-29 may also be used for registration purpose.Again, the documents required for the purpose of incorporation with the relevant ROC, are the following
- DSCs and DINs of the proposed Directors, or detailed information and documents related with the directors seeking DINs, such as PAN Card (Passport in case of Foreign national), PP-Sized Photographs, ID Proof, Address Proof, etc.
- Well-drafted MOA and AOA of the producer company
- Declarations and affidavits of the directors and members
- Address proof of the location of the proposed producer company
- Landlord NOC (Format will be provided)
- Documents related with the real estate property where the registered office of the company will be located, both in cases of the owned/rented property, to avoid any legal litigations later on.
- And, other documents deemed necessary.
Advantages of Producer Company RegistrationThe producer companies have certain exclusive advantages. The most outstanding advantages of producer company are the following:
- A separate legal entity offering limited liability and perpetuity.
- Governed by the Central Government, the Producer Companies offer greater credibility than that provided by unregistered producers organizations (which are governed by State Governments).
- Changes in the Board of Management (which controls all activities of the company) of a producer company can easily and swiftly be made just through filing some simple forms with ROC.
- A registered producer company is entitled to own, sell, enjoy, or alienate a property in its own name.
- A producer company can accept deposits in the form of RD/FD, and give maturity as well as distribute loans to its farmer/agriculturist members, and charge reasonable interest from them.