The Companies Act, 2013 defines a Producer as, “Any person engaged in any activity associated with or relatable to any primary produce”. Here the term Produce means, “Things that have been produced or grown, especially by farming”. A Producer Company is a special corporate entity that has the object that is one, or all of the following: Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the shareholders, or import of goods or services for their benefit.
The following are the major advantages of incorporating a Producer company in India
Separate Legal Status, which can give an independent authority.
It is very easy to make donations and get loans from the company for its members.
The loans given to the members at a lower rate compared to the market rate hence it attracts the members to do more savings.
Enabled and specified benefits related to tax deductions and redemptions.
Benefit of Management.
Getting financial incentives such as loans and opportunities for investment.
Acquiring land or working towards a better brand presence
Benefits of Good Governance
The Governing Authority sets the following Conditions for Incorporating a Producer Company Company in India:
Any 10 or more producers (individuals) can join together to form a production company but there is no upper limit on the number of members.
Or, any 2 or more producer institutions can form a producer company.
A minimum paid-up capital is required to incorporate a producer company.
There should be a minimum of 5 directors (maximum of 15) in a producer company.
It can never be converted into a public company however it can be converted into a multi-state co-operative society.
The following are the steps involved in registering a producer Company in India:
RUN Name Approval (RUN - Reserved Unique Name)
Apply for DIN
Process of Incorporation
Preparing for MOA & AOA
Finally, we are getting COI (Certificate of Incorporation)
DIN is a unique Identification Number allotted to an individual who is appointed as a director of a company, upon making an application in form DIR-3 pursuant to section 153 & 154 of the Companies Act, 2013.
In respect of a new company an application for allotment of DIN shall be made only through SPICe e - form at the time of its incorporation
|Total 10 Members Required
|KYC (Aadhaar, PAN, Voter ID, Email Id, 2 Passport Size Photo, Signature, Mobile No.)
|Latest Bank Statement
COI (Certificate of Incorporation)
1. How to Register a Company in India?
Digital Signature Certificate (DSC) Step 2: Director Identification Number (DIN) Step 3: Registration on the MCA Portal. Step 4: Certificate of Incorporation.
2. Are two directors necessary for registration of company?
Yes, a minimum of two directors are needed for a private limited company. The maximum members can be 200. You can register as a one person company, if you are the sole owner of the company.
3. Is it necessary to have a company’s books audited?
Yes, a private limited company must hire an auditor, no matter what its revenues. In fact, an auditor must be appointed within 30 days of incorporation. Compliance is important with a private limited company, given that penalties for non-compliance can run into lakhs of rupees and even lead to the blacklisting of directors.
4. What is the minimum capital needed to do company incorporation?
There is no minimum capital required for starting a private limited company.
5. Does one have to be present in person for Company Incorporation?
The entire procedure is done online and one does not have to be present at our office or any other place for the incorporation. A scanned copy of the documents has to be sent via mail. They get the company incorporation certificate from the MCA via courier at the business address.