Producer Company Registration
Producer Company is a company registered under the Companies Act, 2013, which has the objective of production, harvesting, procurement, grading, pooling, handling, marketing, selling, 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. Therefore, a Producer Company deals primarily with agriculture and post harvest processing activities.
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 clusters of farmers organized as a Producer Company.
Producer Company Registration Process
Step 1: Producer Company Registration
You can register a Producer Company in 20 to 30 days, subject to ROC processing time.
Step 2: Obtaining DSC & DIN
Digital Signature Certificate(DSC) and Director Identification Number(DIN) is required for the proposed Directors of the Producer Company. DIN and DSC can be obtained for the proposed Directors within 5 to 7 days.
Step 3: Name Approval & License
Once DIN and DSC are available for atleast five Directors, application for reservation of name for producer company can be made to MCA. Name approval can be obtained in 3 to 5 working days.
Step 4: Producer Company Registration
Once the name approval is obtained, registration documents can be submitted to the MCA along with an application for registration. MCA will usually approve the application for incorporation in 5 to 7 days, subject to their processing time.
Frequently Ask Questions (FAQs)
|1||How many people are required to register a producer company?|
|A minimum of five people are required to register a producer company in India.|
|2||What are the documents required for registration?|
|Identity proof and address proof is mandatory for all the proposed Directors of the Producer Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.|
|3||How long will it take to incorporate a Producer Company?|
|You can incorporate a Producer Company for in 20-30 days. The time taken for registration will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy registration, please choose a unique name for your Company and ensure you have all the required documents prior to starting the registration process.|
|4||How long is the registration of the Company valid for?|
|Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of upto 20 years.|
|5||What is a Digital Signature Certificate?|
|A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature. Hence, a Digital Signature is required for all Directors of a proposed Producer Company.|
|6||What is Director Identification Number (DIN)?|
|Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.|
|7||What are the requirements to be a Director?|
|The Director needs to be over 18 years of age and must be a natural person. The Director must be involved in farming activities.|
|8||Is an office required for starting a Producer Company?|
|An address in India where the registered office of the Company will be situated is required. The premises can be a commercial / agricultural / residential where communication from the MCA will be received.|
|9||Do I have to be present in person to incorporate a Producer Company?|
|No, you will not have to be present at our office or appear at any office for the registration of a Producer Company. All the documents can be scanned and sent through email to our office. Some documents will also have to be couriered to our office.|
Advantages of Producer Company Registration
Separate Legal Entity:
A producer company is a legal entity and a juristic person established under the Act. Therefore, a producer company has wide legal capacity and can own property and also incur debts. The members (Directors) of a producer company have no liability to the creditors of a producer company.
A producer company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved. A producer company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.
A producer company enjoys better credibility when compared to unregistered producer organizations. Producer companies are registered and monitored by the Central Government. Producer Organization are on the other hand governed and monitored by State Governments.
The Board of Management of a producer company can be easily changed by filing simple forms with the Registrar of Companies. The Board of Management of a producer company controls the activities of the producer company.
A producer company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No member can make any claim upon the property of the producer company as long as it is a going concern.
Limited Liability means the status of being legally responsible only to a limited amount for liabilities of the producer company. In a Producer Company, the members are not held personally responsible for the liabilities of the Producer company.
Capacity to sue and be sued:
To sue means to institute legal proceedings against or to bring a suit in a court of law. Just as one person can bring a legal action in his/her own name against another in that person’s name, a producer company being an independent legal entity can sue and also be sued in its own name.
A producer company has a structured incorporation process and required annual compliances. Hence, it is easier for a producer company to obtain loans and financial assistance, as it is better valued and recognized by other Government Departments.
- Making a Company ,
- Producer Company Registration