Producer Company Registration Online Process

The main aim of Producer Company is to improve the standard of living of agriculturists and farmers. This Company was established under the Companies Act 2013. There is an essential requirement for Producer Company Registration, such as it can be formed by ten individuals or more, two or more institutions, and more or a combination of both (ten individuals and two institutions). In India, low production and insufficient facilities, which makes farmers life miserable. So, Producer Company empowered all the small scale farmers to opt for the latest and new technologies to lead a better experience. Scroll down to check more information regarding the Producer Company Registration in India.

The following are the Primary Object of Farmer Producer Company that can be set up with any of the following objects.

• Production and Procurement of the primary producers.
• Harvesting and grading of the primary producers.
• Marketing of primary agricultural produce.
• Poling of the primary producers.
• Handling of the primary producers.
• Import/Export or Selling activities in agricultural produce.

Before the registration, the producer company must fulfil all the following requirements:

1. For the Producer Company Registration, there must be a minimum of five directors, and ten members are required.
2. To register a Producer Company requires a minimum paid-up capital of Rs. 5 lakhs or more.
3. There is no limit for the maximum member for a Producer Company.
4. A company cannot be considered or registered as a Public Limited Company.
5. The Producer Company can only hold equity share capital.
6. The Company should carry on four board meetings per year, and it must hold after every three months.

Following are some additional compulsory requirements:

1. All the members of the producer company have limited liabilities to the amount of their unpaid share.
2. It is mandatory to use “Producer Company Limited” at the end of their name.
3. The proposed Producer Company is considered as the Private Limited Company as per the Companies Act Provisions.
4. All the members must be primary producers.
5. Only a member or an individual involved in activities related to the production of primary produce can participate in the Company's ownership.

Following are the list of all the necessary documents required at the time of Registration for a Producer Company:

• For Residential or Commercial Registered Office:

1. Obtain a scanned copy of the rent agreement along with the NOC from the owner.
2. Obtain a copy of any utility bill.
3. A copy of property papers (in case of owned property).

• From all Directors and Shareholder:

1. A copy of Passport / PAN card / Voter ID / Driver’s License.
2. Latest mobile bill or telephonic bill, Bank Statement.
3. Latest passport-sized photographs of all the directors and shareholders.

Following is the step by step process of Producer Company registration:

Step 1: Obtain DSC:

The first step of the Producer Company Registration process is to obtain Digital Signature Certificate of all the Company's proposed directors. To obtain DSC, you have to submit the following documents:

1. PAN and Aadhar card of the director.
2. Latest photographs of the directors.
3. Contact number and Email Id of the directors.

Step 2: Obtain DIN:

After the first step, apply for Director Identification Number (DIN) by filing DIR-3 Form and Id proof, address proof, and a photo.

Step 3: Name Approval:

For the approval of Producer Company’s name, you have to apply along with the prescribed fee in the SPICe+ Form. Once the Company's name is approved, you can fill the incorporation application form within 20 days.

Step 4: Prepare the documents:

After the Company's name approved by the Registrar of Company (ROC), prepare all the following documents:

1. Draft the Memorandum of Association (MOA) which stated that the Company intends to follow.
2. Draft the Articles of Association (AOA) which contains all the rules and regulation of the Company.
3. A declaration by a professional in the form INC-8.
4. Duly-signed affidavit by all the subscribers of the Company stating the legal competency to act as the subscribers.
5. Submit the latest utility bills and No Objection Certificate.
6. The Company's proposed directors give their consent to act in the DIR-2 Form and details in DIR-8 Form.

Step 5: Issuance of an Incorporation Certificate:

After submitting all the documents and uploading them to the ROC website, the officials will verify all the documents. After the verification, the ROC will issue a Certificate of Incorporation.

All the registered Producer Companies in India can avail all the tax exemption benefits from agricultural income under Section 10 (1) of the Income Tax Act, 1961. The agricultural income is 100% exempted from the Income Tax, whereas the income earned from green tea production is 60% exempted as per the law.

With the help of producer companies, the farmers can gain access to input, the current production technologies, credit, market, etc. After introducing the Producer Company in India, those farmers who face many struggles related to facilities or low production for their survival have experienced a sign of relief.