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How much does it cost to Register a Producer Company

A producer company allows farmer’s co-operatives to function as a corporate entity under the Ministry of Corporate Act 2013. The objective of the producer company is related to all kinds of Agri products. The cost of registering a producer company in India depends upon several factors. Therefore the government stamp duty fee for producer company registration differs from state to state.

How to register a producer company?

A group of 10 individuals or producers with a minimum capital of 5 lakh rupees is needed to start a producer company. These are the following steps to register a producer company in India.

Step-1 Obtaining DSC

The registration of a producer company is entirely digital; hence, a digital signature certificate is mandatory. In addition, directors and subscribers to the company’s memorandum must obtain DSC from accredited agencies.

Step-2 Obtaining DIN

The director of a company must get a director identification number (DIN). All businesses must have a director identification number. Each director of a company is required to obtain a DIN. However, for company registration, only one DIN is needed.

Step-3 Register a name for the company

The SPICe RUN form, a subset of the SPICe+ form, can be used to apply for a name for a Producer Company. While creating the company name application must define the industrial activity code and object clause.

Step-4 Obtaining MoA and AoA

SPICe e-MoA and e-AoA are the linked forms that must be completed when applying for company registration.

Section 2(56) of the Companies Act 2013 defines a Memorandum of Association (MOA). It serves as the foundation for the company. It establishes the company’s constitution, powers, and objectives.

Section 2(5) of the Companies Act defines the Articles of Association (AOA). It outlines all of the rules and regulations governing the company’s management.

Step-5 issuance of COI

After approval of the documents mentioned earlier from the Ministry of Corporate Affairs, PAN, and TAN & a Certificate of Incorporation will be issued from the concerned department.

Now, the company must open a current bank account using these documents.

Producer company registration cost

Minimum capital share Government Fees (Stamp fees)
5 lakh rupees Rs. 960 
10 lakh rupees  Rs. 1710 
The govt stamp fee for producer company registration is dependent on nominal capital shares and varies from state to state.

Additional cost involved in Section-8 NGO registration

Steps  Fees 
Obtaining DSC  Rs. 1200
Obtaining DIN  Rs. 500 per person 
Registering a Unique name  Rs. 1000
Note: Legal professional fees are not included.

Producer company registration consultants in India

Applying for a producer company incorporation appears to be simple and easy. However, must follow various compliance and regulations before and after the incorporation of a company. We at professional utilities can guide you through the process in simple steps with our team of experts at the lowest consulting fees.

Advantages of Section-8 Company Registration

  • Separate Legal Entity:-

Producer companies are incorporated under the MCA companies act 2013 as limited companies. Thus it is treated as a separate entity from its shareholder and can own assets in its name.

  • Limited Liability:- 

Directors and shareholders have limited liability protection under the Companies Act of 2013. So, if the company has financial problems, the director’s assets are safe and cannot be seized by banks or government agencies.

  • Tax Relaxation:-

A producer company can benefit from tax breaks and exemptions based on the agricultural activity it engages in.

  • Acceptance of Deposits

A producer company registered with the government may receive deposits in the form of fixed or recurring deposits and may offer lower-interest loans to its members and farmers.

Compliances with producer company registration

  • Appointment of auditor (ADT-1)
  • Filing an annual return
  • Filing of annual income tax return
  • Disclosure of interest and other entities
  • Mandatory Four board meetings each calendar year

FAQs

How much does it cost to register a producer company in India?

The registration fees for producer companies vary from state to state, and it does not include the fee of acquiring  DSC and DIN and the professional consultant fee. Our “producer registration” cost starts from Rs. 12,999* depending on the state of Incorporation(Excluding govt fees), including expert advice throughout the Incorporation process.

How much is minimum share capital required to start a producer company?

 The Minimum share capital should not be less than 5 lakh rupees, and the minimum number of members should not be less than 10.

How to register a producer company online in India?

To incorporate a producer company online in India, applicants must first acquire a digital signature certificate and a director’s identification number. Then they can create a director account on the MCA portal to fill out the SPICe+ form to register a producer company in India.

What is a  Producer Company?

A producer company is classified as an association of individual producers or a group of producers registered under the MCA Act 2013. Such companies are incorporated as either private limited or public limited companies.

How many members are required to start a producer company?

A minimum of 10 members are required to register a producer company.

What is a Producer company under the MCA act?

 As per the companies act 2013, a producer company is a Corporate body.