Producer Company Registration
Starting from ₹40,000 + GST
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Table Of Content
Producer Company Registration Made Easy
Registering a company as a producer typically refers to registering a business entity that is primarily engaged in producing goods or commodities. This can include manufacturing products, agricultural production, or any other activities involved in creating tangible goods for sale or distribution.
The registration process involves legally establishing the company’s status as a producer, which may involve specific regulatory requirements depending on the industry and location of the business.
Benefits of Producer Company Registration
Access to Agricultural Markets
Registering as a producer company opens doors to wider agricultural markets, creating opportunities for increased sales and profitability. It allows members to collectively negotiate better prices and terms with buyers, ensuring fair returns for their produce.
Enhanced Credit Facilities:
Producer companies often enjoy better access to credit and financial services. This enables them to invest in modern equipment, technology, and infrastructure, leading to improved productivity and competitiveness in the market.
Governance and Legal Recognition
Being a registered entity provides a structured governance framework, promoting transparency, accountability, and trust among members, investors, and stakeholders. It also offers legal recognition, which is crucial for accessing various government schemes, subsidies, and incentives.
Market Diversification and Risk Mitigation
Producer companies can diversify their product range and market reach, reducing dependency on a single crop or market segment. This diversification strategy not only spreads risk but also ensures steady revenue streams throughout the year, even during market fluctuations.
Eligibility For Producer Company Registration
Process for Producer Company Registration
Step 1
Application for Name Approval
- The first step in registering a producer company is applying for name approval. Two proposed names, listed in order of preference, along with the business activity’s objective and statutory fees, are submitted to the MCA.
- The proposed name must be unique and free of punctuation marks. If the MCA has any observations, the form may require resubmission, with additional fees for multiple resubmissions.
- Once the name is approved, it remains valid for 20 days, during which all other formalities must be completed.
Step 2
Digital Signature Certificate Application
- Next, a Digital Signature Certificate (DSC) is required for all shareholders and directors of the producer company.
- It can be applied for simultaneously with name approval, as there is no DSC requirement during the name application if shareholders or directors already possess DSCs.
Step 3
Documents Preparation and Form Submission
- After obtaining the DSC and name approval, the next step involves preparing documents and filing forms such as Spice + Part, Agile Pro, Spice MOA, Spice AOA, and INC 9 with the MCA.
- These forms contain information about the registered office, authorized and paid-up capital, shareholding pattern, director details, shareholder addresses, education qualifications, etc.
- Supporting documents like rent/title deeds for the registered office, PAN card, identity proof, and resident proof are also required.
Step 4
Obtaining the Incorporation Certificate
- Upon submission and verification of all documents by the Registrar of Companies (ROC), you will receive a Certificate of Incorporation within 7-12 days.
- This certificate serves as the company’s birth certificate, containing details such as the company name, registered address, and 21-digit alphanumeric Corporate Identity Number (CIN), approved by the MCA and notified in registered companies.
Step 5
Opening a bank account
- After receiving the Incorporation certificate, you need to open a bank account in the company’s name. Submit the incorporation certificate, Memorandum of Association (MOA), Articles of Association (AOA), and other required documents to the bank.
- Deposit the proposed paid-up capital before commencing business operations, and file INC-20A with the MCA to obtain the certificate of commencement.
Documents Required for Producer Company Registration
For each director and shareholder
For address proof of the new company
Additional Requirements For Foreign Nationals
FAQs
What is a Producer Company?
A Producer Company is a type of company registered under the Companies Act, 2013, specifically for activities related to agriculture, farming, and production.
Can the registration process for a Producer Company be done online?
Yes, the registration process for a Producer Company can be completed online through the Ministry of Corporate Affairs (MCA) portal.
What are the eligibility criteria for registering a Producer Company?
To register a Producer Company, a minimum of 10 individual producers or 2 producer institutions is required.
Can foreign nationals be members of a Producer Company in India?
No, only Indian citizens can be members of a Producer Company.
What documents are required for registering a Producer Company?
Documents required include ID proofs and address proofs of all members, PAN cards of all members, and address proof of the registered office.
How long does it take to register a Producer Company in India?
The registration process typically takes between 15 to 20 working days, subject to the submission of all required documents and approvals.
Are there any specific compliance requirements after registering a Producer Company?
Yes, a Producer Company must comply with various regulatory requirements, including holding annual general meetings, filing annual returns, and maintaining statutory registers.
What is the minimum capital requirement for registering a Producer Company?
The minimum paid-up capital for registering a Producer Company is Rs. 5 lakh.
Can a Producer Company be converted into another type of company later?
No, a Producer Company cannot be converted into any other type of company.
What are the tax benefits available to a Producer Company?
Producer Companies may avail of certain tax benefits and exemptions under the Income Tax Act, primarily related to income derived from agricultural activities.