Producer Company
Share holders/Directors Details
- Pan card
- Aadhar card
- Passport or Voter ID or Valid Driving License
- Recent Bank statements (not older than 1 month)
- Mobile number & email id
- passport size photo
Company Details
- Electricity bill or Telephone bill or gas bill of your office address (not older than 1 month)
- Property owner – Name & Address (to draft rental agreement)
- Two Proposed company names (To apply for name reservation)
Deliverables
- Digital signature for 2 directors
- MoA & AoA preparation
- PAN & TAN for the company
- DIN for 2 directors
- Incorporation certificate
- Name reservation fees
- Current Account Opening Support
Private Limited Company Registration in India: A Detailed Guide - Overview
In the Indian economy, which heavily relies on agriculture, Producer Companies emerged as a crucial initiative to uplift farmers and producers. Established in 2002, Producer Companies are legally incorporated bodies of farmers and producers who collaborate to enhance their living standards and strengthen collective support systems.
Definition: A Producer Company operates under the provisions of the Companies Act, 1956, allowing incorporation by 10 individuals, 2 or more entities, or a mix of both. Its primary objectives include purchasing raw materials, manufacturing, crop harvesting, grading produce, pooling resources, marketing, sales, and occasionally exporting products.
Benefits:
- Facilitates large-scale procurement and processing through consortium operations.
- Provides networking opportunities for technical support and expertise sharing among members.
- Promotes mutual assistance, welfare measures, insurance, and financial aid.
- Supports sustainable resource management and conservation efforts.
Features:
- Registration: Governed by the Companies Act.
- Membership: Limited to active participants in business activities.
- Voting Rights: One member, one vote principle.
- Shares: Non-tradable but transferable.
- Reserves: Mandatory to create reserves annually.
- Dispute Settlement: Handled through Arbitration and Conciliation.
Requires a minimum of 10 producers/agriculturists as founders, with at least 5 directors who must be individuals. Directors often overlap with founding members.
Documents Required for Registration:
- DIR-2 form with proof of identity and address for founding members.
- Residence proof, such as Voter’s ID or passport.
- Address proof of the principal place of business.
- Utility bills not older than 2 months.
- PAN card copies, and two passport-size photos of directors without DIN.
- Digital Signature Certificate (DSC) for all memorandum subscribers.
- Farmer/producer certification from local agricultural officers.
- Minimum 10 producers and 5 directors required.
- Use SPICe+ portal for incorporation.
- Part A: Name approval and Part B: Incorporation of the company.
- Prepare MOA and AOA (physical copies).
- Fill details in AGILE PRO for GST, EPFO, ESIC, and bank account.
- Fill INC-9 web form and affix director/subscriber signatures.
- Submit forms online, pay fees, and await Certificate of Incorporation.
This structured approach ensures compliance and facilitates the establishment of Producer Companies, fostering cooperative growth among agricultural communities.
FAQs
The typical timeframe for incorporating a producer company is approximately 30 days. Once all the necessary forms are prepared, they should be uploaded as hyperlinks on the MCA website. The application fee must also be submitted along with the documents. Upon successful verification of all documents and annexures by the concerned ROC, registration entries related to the Memorandum, Articles, and other relevant documents will be made. The ROC will issue a Certificate of Incorporation within thirty days, which serves as conclusive proof of the company’s formation under Part IX A. The date mentioned on the registration certificate is considered the effective date of the producer company’s registration.
The registration fees vary based on the capital structure of the company. For specific details, it’s advisable to check the fees tab on the MCA portal to avoid any discrepancies.
Name of the company: The name must end with “Producer Company Limited”.
Minimum number of Directors: At least 5 directors are required to incorporate a private limited producer company, with a maximum limit of 15 directors.
Election of Directors: Directors must be elected within ninety days from the date of incorporation.
Alteration in Memorandum of Association and Articles of Association: Any alterations in the Articles of Association require approval by at least 2/3rd of the elected directors or 1/3rd of the members. The amended MOA and AOA must be filed with the Registrar of Companies within 30 days of such alteration.
Chief Executive: A full-time Chief Executive must be appointed, confirmed by the Board, and cannot be a member.
Company Secretary: If the annual turnover exceeds Rs. 5 crores in each of the preceding three financial years, a whole-time Company Secretary must be appointed.
Share Capital and Transfer of Shares: The company can only issue equity shares, with provisions in the Articles for special rights to active members. Shares are not transferable, and each member must nominate a nominee within three months of becoming a member.
Meetings of the Board: The Board must convene at least four meetings annually, with a maximum gap of three months between meetings. Notice for meetings must be given at least 7 days in advance by the Chief Executive, with exceptions for shorter notices if reasons are stated.
Annual General Meeting (AGM): The AGM should be held within six months from the end of the financial year, and not more than 15 months should elapse between two AGMs. A notice must be issued at least fourteen days before the AGM, and the Directors Report, audited balance sheet, and profit and loss account should be filed with the ROC within 60 days from the date of the AGM. The quorum for an AGM is 1/4th of the total number of members.
