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All about Producer Company


If you love the lush greenery of the country and want to set up business in that sector, then you must register a producer Company. The producer Company which is registered under the ComPANies Act, 2013, it focuses more on the objective of production, harvesting, pROCurement, grading, handling, marketing, selling, and export of primary produce of the Members or import of goods or services for their benefit, which means it looks after the agriculture sector and looks after these. This Company also looks after the post agriculture services and works for the upliftment of those. The Producer Company would not only benefit the farmers but would also help in growing up the economy of the country as a whole.


How to register a producer Company registration in India


Before you get into the actual producer Company registration, there are a few pre-registration necessities. These are mentioned below:


  1. There must be a minimumṣ of 5 directors and 10 members.
  2. The minimum paid-up capital of the Company is 5 lakhs.
  3. The maximum number of directors which a producer Company can have is 15, but there is no limit on the members.
  4. The deposits are accepted in compliance with the rules and regulations.
  5. A producer Company cannot be regarded as a private Company in India
  6. There should be a minimum of 4 board meetings in a year.


For the registration pROCess, these are required:


  1. First of all the DSC and then the DIN of all shareholders and the Directors are required.
  2. Now you can set a name for your Company which has to be approved by the registrar of offices.
  3. An incorporation application is filed in SPICE form and the required documents are to be submitted.
  4. Now, it takes around 7 days for the issuance of the certificate after which you are all good to go.


Documents Required for registration


These are the documents required for the producer Company registration. 

  1. Registered Office addresses and the address proof of the same
  2. Passport size photographs of each director
  3. Digital Signatures of the directors and shareholders.
  4. DIN number
  5. Residence proof of every director
  6. Latest Bank statement
  7. Identity proof of each director such as PAN, AADHAR, etc.


Benefits of Producer Company Registration


The benefits of this producer Company registration are as follows: 


  1. The management pROCess is easier and the board of management can easily be changed if needed, by filling simple forms with ROC
  2. A Company which is a registered Producer Company can own, sell, enjoy or even alienate ṣproperty in its name.
  3. This firm can accept deposits in the form of FD/RD and help the farmers and agriculturalists by aiding them loans as and when required.
  4. The directors of a producer Company do not have any liability to the creditors of this Company.
  5. It has uninterrupted existence which means that the Company stands out even after the death or departure of any member.

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FAQ - Frequently asked questions

Do I need to be physically present during this process?

This isn't required. The entire process is now automated and handled online. You will receive the DIN numbers and Certificate of Incorporation by e-mail from Ministry of Corporate Affairs (MCA).

How much time is needed for setting up a producer company in India?.

Expect it to take 35 to 40 days to complete the entire procedure. This will, however, depend on whether you have all your papers in order and the workload of the RoC.

What are the rules for picking a name for a producer company?

Every company has two parts to its name. The first part is unique. For example, 'WIPRO' or 'MERCEDES-BENZ'. The second part describes the business activity of the company. For example, 'Legal Solutions' or 'Technologies'. This second part must be as descriptive as possible. The name of the company must end with 'Producer Company Limited'.

What documents need to be submitted to start a producer company?

Most importantly, all directors must have an identity and address proof and rights to practice on the property they are operating on. The owner of the registered office will also need to submit an NoC, stating that the company may operate from that location.

What is a Digital Signature Certificate?

A Digital Signature Certificate, or DSC, is issued by six certifying authorities in India (such as e-Mudhra and n-Code). It is nothing but an electronic version of a physical signature. It can be used to verify documents in the company registration process.

Will my producer company have a continuous existence?

All companies are legal entities by themselves. Therefore, they have a continuous existence. The only way a producer company can cease to exist (other than shutting it down voluntarily) is if the annual compliances are not met or if the creditors/courts force its closure.

Will the books of a producer company need auditing?

Yes, a producer company must have its books audited from its very first year. And in case turnover crosses Rs. 5 crore, it must employ a full-time company secretary to manage its affairs.