Producer Company Overview

The Companies Act defines Producer as any person engaged in any activity connected with or relatable to any primary produce (Produce: “things that have been produced or grown, especially by farming”). A Producer Company is thus a body corporate having an object that is one or all of the following:

  • production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit.

Further, the Producer Company must deal primarily with the produce of its active Members and is allowed to carry on any of the following activities by itself or through other entities – on behalf of the members.

  • processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its Members;
  • manufacture, sale or supply of machinery, equipment or consumables mainly to its Members;
  • providing education on the mutual assistance principles to its Members and others;
  • rendering technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its Members;
  • generation, transmission and distribution of power, revitalisation of land and water resources, their use, conservation and communication relatable to primary produce;
  • insurance of producers or their primary produce;
  • promoting techniques of mutuality and mutual assistance;
  • welfare measures or facilities for the benefit of Members as may be decided by the Board;
  • any other activity, ancillary or incidental to any of the activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner;
  • financing of procurement, processing, marketing or other activities which include extending of credit facilities or any other financial services to its Members.

Producer Company Registration

To register a Producer Company in India, the following members in any of the combination is necessary:

  • Ten or more individuals, each of them being a producer; or
  • Two or more producer institutions; or
  • A combination of ten or more individuals and producer institutions

The registration process for a Producer Company is then similar to that of a Private Limited Company. DSC and name approval must first be obtained. The name of a producer company must end with the words “Producer Limited Company”. Once, name approval is obtained from the MCA, application for incorporation can be filed in the prescribed format for incorporating the Producer Company.

If the Registrar is satisfied with the application for incorporation of Producer Company, then he/she will approve the same and issue Certificate of Incorporation. Once, a producer company is incorporated, it shall function similar to a private limited company subject to certain provisions. However, unlike a Private Limited Company, a Producer Company does not have a limit on the number of members. Further, though the name of a Producer Company ends with the words “Producer Limited Company”, it shall under no circumstance become or be deemed to become a public limited company.

Company Name Availability

Companies Act, 2013 does not permit registration of identical or similar names

9 Articles to Read Before Producer Company Registration

Pay as you go grow pricing

All Inclusive Pricing - No Hidden Fee

Basic

45899

all inclusive fees

  • 10 Class 2 Digital Signatures 1
  • 10 Director Identification Numbers
  • 1 RUN Name Approval 2
  • Upto 10 Lakhs Authorized Capital 3
  • Incorporation Fee
  • Stamp Duty 4
  • Incorporation Certificate
  • Current Account Opening
  • PAN & TAN
  • 50+ Document Formats
  • Incorporation Kit
  • Hard-copy Share Certificates
  • GST Registration
  • Premium LEDGERS Accounting Software 5
  • GST eWay Bill Software

Premium

59899

all inclusive fees

  • 10 Class 2 Digital Signatures 1
  • 10 Director Identification Numbers
  • 1 RUN Name Approval 2
  • Upto 10 Lakhs Authorized Capital 3
  • Incorporation Fee
  • Stamp Duty 4
  • Incorporation Certificate
  • Current Account Opening
  • PAN & TAN
  • 50+ Document Formats
  • Incorporation Kit
  • Hard-copy Share Certificates
  • GST Registration
  • Premium LEDGERS Accounting Software 5
  • GST eWay Bill Software
  • One year TDS filing
  • Trademark Registration
  • Class 2 digital signatures with 2 year validity on secure USB token.
  • Upto 4 name options can be given in 1 RUN name approval request.
  • Authorised capital is the amount of shares a company can issue at anytime and can be increased further in the future. Paid-up capital is the amount invested by shareholder and can be even Rs.2.
  • In case of Rs.10 lakh authorised capital, stamp duty of Rs.5120 (on actuals) will be chargeable extra for the state of Gujarat. Rs.5510 will be the additional stamp duty charges for state of Rajasthan. In case of incorporation in Madhya Pradesh, an additional stamp duty of Rs.7550 will be applicable. In case of incorporation in Punjab, an additional stamp duty of Rs.15025 will be applicable. In case of Kerala, an additional stamp duty of Rs.3025 will be applicable.
  • Premium LEDGERS Accounting Software with GST Portal Integration and eWay Bill Software.
  • Statutory Auditor fee is payable on actuals directly to the Independent Auditor appointed by the Board of Directors. IndiaFilings will only be responsible for accounting, preparation of financial statements and filing of returns on behalf of the Company.

Producer Company Bank Account Opening

ICICI Logo

Open a new or link your existing ICICI bank current account with LEDGERS for seamless bank account reconciliation, account balance check and sending of payments through NEFT / RTGS / IMPS.

Open a new or link your existing DBS bank business account with LEDGERS for seamless bank account reconciliation, account balance check and sending of payments through NEFT / RTGS / IMPS.


Bank Account Opening

Opening a current account for a producer company is easier when compared to opening of current account for a sole proprietorship firm as a company is a registered legal entity – recognized by law. Therefore, once a company is incorporated, a bank account can be opened in the name of a company with the incorporation certificate of the company and identity/address proof of the Directors.

How many people are required to register a producer company?
A minimum of five people are required to register a producer company in India.
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.

How long will it take to incorporate a Producer Company?

IndiaFilings.com 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.

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.

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.

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.

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.

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.

User

Hi there,

We are available online!

loading...