Updated on July 13, 2023 03:04:00 PM
The Indian economy is an agricultural centric economy. Agriculture in India is livelihood for a majority of the population as it employs more than 50% of the Indian workforce. But the sad part is producers and farmers are deprived in the agricultural process. They don’t have access to technology, knowledge and funds. To address this issue, the concept of Producer Company was introduced in 2002, to help improve the lives of farmers and producers.
Producer Company - Incorporation Certificate [Sample]
Producer company is a corporate body of producers, farmers and agriculturists with the objective of procurement, production, harvesting, grading, pooling, handling, marketing, selling or export of the members or import of goods and services for themselves.
In simple words, this type of company is formed with the aim to improve the lives of people associated with the agriculture industry by providing them access to technology, market, credit, etc.
It is registered as a public company under the Companies Act, 2013 and must include “Producer Company Limited'' as the last words of its name.
The objects of Producer Company given under Section 581B (as per the law) are as follows:
“The objects of the Producer Company shall relate to all or any of the following matters, namely : -
Producer Company is a separate legal entity which means it can acquire assets and incur debts on its own name. The directors have no obligation to the lenders of the company.
As the producer company is formed by individuals or institutions who are primary producers, the government has passed a special provision for giving loans to the producer members. For this specific purpose, NABARD Bank was established to provide financial assistance to producers and farmers via NABARD Loan.
There are certain tax benefits and exemptions for a producer company depending upon the agricultural activity it carries on.
As per the Companies Act, 2013, directors and shareholders have limited liability protection. So if there are any financial issues with the company, the assets of the director are secured and could not be seized by banks or departments.
A registered producer company can accept deposits in the form of fixed or recurring deposits and the company can advance loan to the members and farmers at lower rate of interest.
Producer Company registration is a complete digital process and therefore requirement of Digital Signature Certificate is a mandatory criteria. Directors as well as subscribers to the memorandum of the company need to apply for a DSC from the certified agencies. Obtaining a DSC is a complete online process and it can be done within 24 hours. This process involves 3 simple verifications that are document verification, video verification and phone verification.
Name application for Producer Company can be done through SPICe RUN form which is a part of SPICe+ form. While making the name application of the company, industrial activity code as well as object clause of the company has to be defined.
Note: It should be ensured that business name does not resemble the name of any other already registered company and also does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950). You can easily check the name availability by using our company name search tool to verify the same.
Post name approval, details with respect to registration of the company has to be drafted in the SPICe+ form. It is a simplified proforma for incorporating a company electronically. The details in the form are as follows:
SPICe e-MoA and e-AoA are the linked forms which have to be drafted at the time of application for company registration.
Memorandum of Association (MOA) is defined under section 2(56) of the Companies Act 2013. It is the foundation on which the company is built. It defines the constitution, powers and objects of the company.
The Articles of Association (AOA) is defined under section 2(5) of the Companies Act. It details all the rules and regulations relating to the management of the company.
Post approval of the above mentioned documents from the Ministry of Corporate Affairs; PAN, TAN & Certificate of Incorporation will be issued from the concerned department. Now, the company is required to open a current bank account by using these documents. You can contact us for assistance with your current bank account opening.
The process of registering a Producer Company is complicated and involves various compliances. Our experts at Professional Utilities can simplify the whole registration process for you. Register your Producer Company Online in 3 easy steps:
Post incorporation of Producer Company, you’ll receive the following documents:
The total cost of Producer Company registration in India, including government and professional fees, starts from ₹12,999 and takes around 14-21 working days.
|Digital Signature Certificate||₹7,000|
*Important Note: The total incorporation fees of a Farmer Producer Company varies from state to state. Refer to the map for state-wise prices.
On average, it takes around 15-20 working days to register a Producer company in India subject to document verification by the Ministry of Corporate Affairs (MCA).
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At least 10 or more members, or minimum two producer institutions are required and minimum 5 lakh rupees as share capital for incorporation of the producer company. There must be a minimum of 5 directors and proper identity & address proof is required to submit alongwith professional certification (CA, CS, etc.).
A minimum of 10 members or two producer institutions are required to form a producer company.
A producer company is a public limited company having objectives specified in section 581B.
Minimum capital of 5 lakh rupees is required at the time of registration of a company.