Producer Company
Start your Producer Company registration with IndiaFilings. We handle the entire process for you, including the Incorporation Kit and share certificates. Our service is designed to be simple and efficient, so you can get your company registered hassle-free.
Producer Company Registration in India
A Producer Company, also known as a Farmer Producer Company, is a unique legal entity designed to benefit farmers and agriculturists. It combines the professional management of a private limited company with the cooperative spirit of a society. Its primary goal is to empower primary producers, enhance their income, and ensure the long-term viability of their resources.
At FileMyFirm, we provide expert guidance for Producer Company registration in India. Our team simplifies the complex process of forming a Farmer Producer Company, ensuring full legal compliance under the Companies Act, 2013. Contact us today to take the first step toward empowering your agricultural venture.
What is a Producer Company?
A Producer Company is an officially recognized organization of farmers or agriculturists. Governed by the Companies Act, it functions on democratic principles where each member has an equal say in decision-making, regardless of their shareholding.
The main objectives of a Producer Company are to advance the interests of its members by facilitating activities related to:
- Production and Marketing: Handling, selling, and exporting members’ primary produce.
- Processing: Adding value to produce through preservation, drying, or canning.
- Supply: Manufacturing and supplying equipment and consumables to members.
- Financial Support: Providing credit facilities and other financial services.
Advantages of a Producer Company
- Hybrid Structure: It blends the professional management of a private limited company with the mutual benefits of a cooperative society.
- Limited Liability: Members’ financial responsibility is limited to their share contribution, protecting their personal assets from the company’s debts.
- Minimal Capital Requirement: The minimum paid-up capital is only ₹1 lakh, making it accessible for small groups of farmers.
- Flexibility in Membership: A minimum of 10 producers is required, with no upper limit on the number of members.
- No Government or Private Equity: Producer Companies are safeguarded from external takeovers, ensuring their autonomy.
- National Scope: They can operate nationwide, allowing for business expansion and growth.
How to Register a Farmer Producer Company
Registering a Producer Company involves a structured procedure similar to incorporating a private limited company.
Step 1: Obtain Digital Signature Certificate (DSC)
All proposed directors must acquire a DSC for secure online filing with the Ministry of Corporate Affairs (MCA).
Step 2: Obtain Director Identification Number (DIN)
Each director must obtain a unique DIN by filing the DIR-3 form.
Step 3: Name Reservation
The company name must be unique and end with “Producer Company.” An application is filed with the Registrar of Companies (ROC) to reserve the name.
Step 4: Prepare Essential Documents
Key documents to be prepared include:
- Memorandum of Association (MoA): Outlines the company’s objectives.
- Articles of Association (AoA): Lays down the company’s by-laws.
- Affidavits from subscribers.
- Proof of Registered Office address.
Step 5: File Incorporation Application
All prepared documents are filed through the SPICe+ form with the ROC.
Step 6: ROC Verification and Certificate of Incorporation
Upon successful verification, the ROC issues the Certificate of Incorporation, officially legalizing the company.
Governance and Compliance
A Producer Company is managed by a Board of Directors, which must consist of at least five directors elected by the members. Directors serve a term of five years and can be re-elected.
Key compliance requirements include:
- Annual Audit: All financial accounts must be audited annually.
- Profit Sharing: Dividends can be distributed to members, capped at 20% of annual profits.
- Operational Restrictions: The company is prohibited from engaging in speculative activities unrelated to primary production.
- NABARD Registration: Registration with NABARD can provide access to financial and technical support.
Seamless Producer Company Registration with FileMyFirm
FileMyFirm offers comprehensive assistance for starting a Producer Company. Our expert team provides end-to-end support, guiding you through every step, from initial paperwork to final approval. Beyond the registration phase, we offer a range of post-incorporation services to help your company thrive and comply with all regulatory requirements.
Choose FileMyFirm for a one-stop solution for all your incorporation needs.