Producer Company
What is Producer Company?
Producer Company is a legally recognized body of farmers/ agriculturists with the aim to improve the standard of their living, and ensure a good status of their available support, incomes and profitability. Minimum paid-up capital of Rs. 5 Lakhs is required to form the company. The Producer Company in India cannot be deemed as a public company and can have only equity share capital. Under Companies Act, 2013, a Producer Company can be formed by 10 individuals (or more) or 2 institutions (or more) or by a combination of both (10 individuals and 2 institutions) and minimum of 5 directors having their business objective as one of the following:
- Procurement
- Production
- Harvesting
- Grading
- Pooling
- Handling
- Marketing
- Selling, or
- Export
of the primary produce of the Members or import of goods or services for their benefit.
The main objective of the producer company is to facilitate the formation of co-operative business as companies and to make it possible to convert existing co-operative business into companies.
Types of Producer Companies:
1. Production Businesses- Production, procurement, or manufacture of primary produce.2. Marketing Businesses- Marketing or promotion of primary produce, or provision of educational services.
3. Technical Service Businesses- Technical assistance to producers, providing training and educational services or conducting research and development.
4. Financing businesses-Finance production activities from production, marketing or development domain.
5. Infrastructure Businesses-Provides infrastructure to producers, in the form of electricity, water resources, irrigation techniques, land utilization and so on.
Advantages of Producer Company
• More Credibility:-A producer company offers more credibility to the farmers as compared to other unregistered organizations of farmers or agriculturists.• Limited liability and separate legal entity:-Registering as a producer company provides a separate legal entity separate from its members and limited liabilities to its members.
• Own a property:- A duly registered farmer company has the right to sell or own a property in its name. Furthermore, it is entitled to accept the deposits or to give loans at very reasonable interest rates to its agriculturist members.
• Ease in management and registration:-Registration as a producer company is an easy process and the company can make changes in the Board of Management through filing some simple forms with the concerned ROC.
• Acceptance of Deposits: -A registered company can accept deposits in the form of fixed or recurring deposits. Other than that they can also disburse the loan to the members and farmers at a very reasonable rate of interest.
Procedure for the Incorporation of Producer Company
1) The first step is to obtain a Digital Signature Certificate (DSC) by all the Directors. Documents required to obtain DSC are:
- PAN Card of the Director
- Aadhar card of the Director
- Photo
- Email ID
- Contact Number
2) After obtaining DSC, the next step is to obtain the Director Identification Number (DIN) by filing form DIR-3 along with a self-attested identity proof, address proof and a photo. (If directors are more than three as DIN for up to three directors can be obtained through Spice+ Inc-32).
3) File form Spice+ Part Afor reservation of name. Two names can be proposed in application. CRC on being satisfied may reserve the name for a period of 20 days from the date of approval.
4) The next step is to file application for certificate of Incorporation through Spice+ Part B for incorporation of company along with e-MOA and e-AOA.
5) Spice+ also gives facility to obtain EPFO, ESI and GSTIN registration of the proposed company.
6) After satisfying with all the details provided in application for certificate for incorporation, registrar of companies shall issue Certificate of Incorporation (COI) of the company and allot CIN Number (Corporate Identity Number).
Documents required for Incorporation of Nidhi Company
1) Passport size photograph of all directors and members
2) Self-attested copy of PAN of all directors and members
3) Self-Attested Address proof of all directors (Any One of Voter ID, Passport, Driving License, Aadhar Card)
4) Proof of office address (Any One of Electricity Bill, Telephone Bill, Property, Gas Bill, Tax Bill).
5) If Rented Business (Rent Agreement Copy) or if own (sell deed)
6) Company Name (1 to 2 Names)
7) Company object or product Name