Producer Company Registration
Ideal for agricultural activities
For producers and farmers
Simple & Secure Online Process
Dedicated Professional
Get Registration in 10-15 Days
Get Post Incorporation Assistance
Introduction of Producer Company
A Producer Company is basically a corporate body having the objects or activities relating to primary production as specified under the Act. In a producer company, a group of people related to farming and its selling/exporting also.
The Incorporation of this entity is governed by the Part IXA of Companies Act, 1956 and any other law for the time being in force until any special Act is framed. The producer company can also lend loans to its members subject to the conditions.
To form such entity ten or more member are required being the producers; or any two or more producer institutions; or its combination thereof. A Producer Company enjoys all the benefits which are available to any other Company like the liability of its members is limited to the extent of unpaid share capital by its members. It is generally deemed as Private Limited Company.
Compliance Sagar has team of experts providing you the best assistance, timely delivery and guaranteeing the highest customer satisfaction with respect to Company formation process. You may get in touch with our team on +91 90797 59095 or email cssunil93@gmail.com for Producer Company registration and Producer Company Compliance services
Advantages of Producer Company
Separate Legal Entity
Once an entity is registered it is born in the eyes of law which means it is separate from its owners, Directors, Managers, shareholders and employees etc. It can operate simply by its bank account and also provides the right to file case against third parties in case of wrongful act.
Limited Liability
The liability of the Members is limited to the extent of Capital invested by them in the Company and therefore, they cannot be held personally liable for the debt and obligations of the Company. Therefore, the liability of the members is limited to the amount, if any unpaid on shares.
Beneficial for Members
Initially every member can only receive the value of the produce as decided by the Board. The withheld price may be disbursed after some time in form of cash or by allotment of equity shares. Limited return is provided to the Members but can also be allotted the bonus shares. The surplus can also be disbursed as patronage bonus.
Special User Rights
Active members of the producer company are provided the special user rights, if so authorized by the Articles of Association of the company. It is the right relating to the supply of additional produce by the active members of the Company for which appropriate instruments are issued to active members in respect of such rights.
Minimum Requirements for Producer Company Registration
Documents Required for Producer Company Registration
Passport in case of Foreign Nationals
Producer Card of Members
Latest passport size photograph of Member and Directors
PAN Card of the Member and Directors of the proposed Company
Identity Proof of the Member and Directors of the proposed Company (Aadhar /Voter ID/Driving License/Passport)
Address Proof the Member and Directors (Utility Bill/Telephone Bill/Mobile Bill/Bank Statement not older than two months)
Rented/leased : (Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill)
Business Address Proof Owned Property : (Copy of Registry and Latest Govt. Electricity Bill or Water Bill)
Note:- In case of NRI or Foreign National documents of Directors and Subscribers must be notarized or apostillled.
Process of Producer Company Registration
More Insights on Producer Company Registration
How to Select the Name of Company
- You can check Company name availability thereby logging into MCA where you need to keep in Mind two or three available options along with the activity type. Our team will assist you in the selection of name of company.
- Also, along with checking the name availability we also need to check the trademark if already Registered under the proposed name which makes the online application for registration more Powerful. If you want to have a trademark of your word or logo you can get the same through Compliance Sagar by clicking on the link Trademark Registration
Other Key Points
- If the proposed Director is already having the DIN then you can also check whether DIR-3 KYC is completed. You can verify the same with the help of our experts. If the same is not done yet, it can be done with help of Compliance Sagar.
- The producer company is required to manage all the compliances after incorporation of the company like appointment of statutory auditor, filing commencement of business, Income Tax Filing, Annual Returns with ROC and other compliances as required by the law. Compliance Sagar has a team of experts who keeps an eye on the due dates of your compliances and reminds you through mails.
- The Share Capital of the Producer Company consist only of the Equity Shares
- The voting rights shall be based on single vote for every member
- The Producer Company can only carry the activities as mentioned under the Act.
- Internal Audit is mandatory by an independent Chartered Accountant
- Loans Under Producer Company : The Producer company may provide financial assistance by way of credit facility to any members for upto 6 months The Producer company can also provide financial assistance in the form of loans and advances against the security. The loan shall be repayable between 3 months to 7 years.
Difference Between Producer Company and Co-Operative Society
| S. No. | Basis | Producer Company | Co-operative Society |
| 1. | Registration under | Companies Act | Cooperative Societies Act |
| 2. | Membership | Only producers and their agencies | Open to any individual or co-operative |
| 3. | Area of operation | Throughout India | Restricted |
| 4. | Shares | Tradable within membership only | Not tradeable |
| 5. | Member stakes | Articles of association can provide for linking shares and delivery rights | No linkage with no. of shares held |
| 6. | Voting rights | Only one member one vote and non-producer can’t vote | One person one vote but government have veto power |
| 7. | Reserves | Mandatory to create reserves | Can be created if made profit |
| 8. | Disclosure and audit requirements | Very strict as per the Companies Act | Annual report to regulator |
| 9. | Borrowing power | Many options available | Restricted |
| 10. | Dispute settlement | Through Arbitration or in accordance with Companies Act | Through co-operative system |