Rahil Aggrawal
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What is a producer company under the Companies Act? A company formed under the Companies Act 2013 and carrying on the activities as mentioned in section 581B of Companies Act 1956. These activities include- Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export, and import of the primary produce of the members of the producer company. Processing of produce. Processing includes preserving, drying, distilling, brewing, venting, canning, and packing of the produce of the members of the producer company. Sale, supply, and manufacture of plants, machinery, and equipment. It also includes consumables for the members. Providing insurance to the member producers and their produce. Generation, transmission, and distribution of power. The usage and conservation of land and water resources. Providing technical services, consultancy, training, research and development, and other activities for the benefit of the members.
Important Provisions Relating To Producer Company
The members need to be primary producers and can carry only activity prescribed under the Act in Pune.
The proposed name of the company shall end with the words “Producer Company Limited” only.
There is NO maximum limit on the number of members applicable to these types of Companies.
The producer company will become as if it is a “Private Limited Company” on registration, for the purpose of application of administration and law of the company.
The limit of a minimum No. is 10 individual members.
Share capital shall consist of equity shares only of a Producer Company.
There must be a minimum of 5 and not more than 15 directors in the Producer’s company.
Voting rights will be based on a single vote of individuals, for every member.
A full time chief executive officer (CEO) should be appointed by the board only.
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Who can form a Producer Company/ Producer Company Formation?
A producer company can be formed by the following persons-
Ten or more individuals, all of them being producers.
Two or more Producer institutions.
A combination of 10 or more producer institutions and producer individuals.
Here, producer means any individual engaged in any activity related to the primary producers of a farmer is defined as a producer.
Can Producer Company accept deposits?
Yes, a producer company can accept deposits in the form of fixed deposits and recurring deposits. It can also give loans to its members and charge reasonable interests from them.
Do I need to be physically present during this process?
No, the registration process has been fully automated and can be completed online. You can get the DIN (Directors’ Identification Numbers) and Certificate of Incorporation by email from the Ministry of Corporate Affairs.
The first step is to obtain DSC for all the proposed directors in a company. DSC is required to sign the documents electronically. It is issued by the certifying authority.
The next step is to obtain DIN (Director Identification Number) by all the proposed directors in a company. Now DIN can be obtained directly through SPICE Form and there is no need to file a separate form.
For registering the Producer Company name, an application is filed with the prescribed fee in RUN (Reserve Unique Name) form with the registrar of companies. On application, ROC verifies the name availability. After the approval of the Producer Company name, an incorporation application is filed within 20 days.
After obtaining name approval, an incorporation application is filed in SPICE form along with the necessary documents such as MOA, AOA, affidavit, and declaration with the concerned Registrar of Companies. After verification of the incorporation form, Certificate of Incorporation is issued by the ROC
It takes around 35 to 40 days to complete the entire procedure. This will, however, depend on whether all papers in order and the workload of the RoC.
From All Directors And Shareholder
1. PAN Card or Passport or Election ID Card
2. Latest Bank Statement/Telephone or Mobile Bill
3. Voter's ID/Passport/Driver's License
4. Passport-sized photo of all directors and shareholders
For Proposed Registered Office (Residential Or Commercial)
1. Copy of any Utility bill
2. Scan copy of Rent agreement with NOC from the owner
3. In case of owned Property then copy of Property Papers.
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