A Producer Company is a corporate entity registered under the Companies Act, 2013, designed for individuals involved in primary production, such as farming, fishing, or weaving. It combines the benefits of a private limited company (like limited liability) with the principles of a cooperative society (like mutual assistance and member-centric governance). The name of a producer company must end with "Producer Company Limited."

 

Why Choose a Producer Company? 

 

• Empowerment and Collective Bargaining Power: By aggregating their produce, members can negotiate better prices for their products and purchase inputs like seeds and fertilizers at reduced costs, bypassing intermediaries.

• Limited Liability: A Producer Company is a separate legal entity, meaning members' personal assets are protected from the company's debts or legal issues.

• Access to Finance and Government Schemes: It has greater creditworthiness, making it easier to secure loans from financial institutions like NABARD. Producer Companies are also eligible for various government grants, subsidies, and tax benefits.

• Democratic Governance: Every member has equal voting rights, irrespective of the number of shares they hold. This ensures the company's decisions are aligned with the interests of all producers.

• Professional Management: The company can appoint a full-time Chief Executive Officer (CEO) and a board of directors to manage operations efficiently, allowing producers to focus on their core activities.

 

The Complete Registration Process 

 

The registration process is similar to that of a private limited company and is conducted online through the Ministry of Corporate Affairs (MCA) portal.

 

Step 1: Fulfill the Pre-Incorporation Requirements

 

• Members: A minimum of 10 individuals (all of whom must be producers) or two producer institutions, or a combination of both, are required. There is no upper limit on the number of members.

• Directors: A minimum of five directors and a maximum of 15. The directors must be members of the company.

• Authorized Capital: A minimum authorized capital of ₹5 lakh is mandatory.

 

Step 2: Obtain Digital Signature Certificate (DSC) and Director Identification Number (DIN)

 

• All proposed directors and members must obtain a DSC to sign the e-forms.

• Each director must have a DIN, a unique identification number assigned by the MCA.

 

Step 3: Reserve a Unique Name

 

• File an application using the RUN (Reserve Unique Name) service on the MCA portal. The proposed name must be unique and end with "Producer Company Limited."

 

Step 4: Draft Legal Documents

 

• Prepare the Memorandum of Association (MoA) and Articles of Association (AoA). The MoA defines the company's objectives and the AoA specifies its internal rules and regulations.

 

Step 5: File for Incorporation

 

• File the integrated SPICe+ form electronically with the Registrar of Companies (RoC). This form includes applications for the company's PAN, TAN, and other mandatory registrations like EPFO and ESIC.

 

Step 6: Obtain Certificate of Incorporation (CoI)

 

• Once the RoC approves the application, it issues the Certificate of Incorporation (CoI), which officially establishes the company's legal existence and provides a unique Corporate Identification Number (CIN).

 

Required Documents 

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Documents from Directors & Shareholders

 

• Identity Proof: PAN Card (for Indian nationals) and Passport (for foreign nationals).

• Address Proof: Utility bill (e.g., electricity, mobile bill) or bank statement not older than two months.

• Passport-sized Photograph.

• Proof of Producer Status: A letter from the Sarpanch or land records (Khasra-Khatuni) to prove the individual's status as a primary producer.

 

Documents for the Registered Office

 

• Address Proof: A utility bill of the registered office address (not older than two months).

• No Objection Certificate (NOC): From the property owner.

• Rent Agreement: If the property is rented.