Producer Company Registration: Eligibility, Procedure, and FAQs

Producer Company Registration: An Overview

A producer company is a type of organization that primarily deals with the production, procurement, and marketing of agricultural products. It is a registered body that is formed by ten or more primary producers or by two or more producer institutions, or by a combination of both. In this blog, we will discuss the process of producer company registration in India, along with the benefits of registering a producer company.

Benefits of Producer Company Registration

Before we delve into the process of producer company registration, let’s first understand the benefits of registering a producer company. Some of the advantages of registering a producer company are:

1. Separate Legal Entity: A registered producer company is treated as a separate legal entity, which means it can sue and be sued in its name.
2. Limited Liability: The liability of the members of a producer company is limited to the extent of their share capital.
3. Perpetual Succession: A registered producer company has perpetual succession, which means it continues to exist even if the members change or die.
4. Access to Finance: A producer company can easily obtain finance from banks and financial institutions as it is a registered entity.
5. Tax Benefits: A registered producer company is eligible for various tax benefits such as tax exemptions and deductions.

Process of Producer Company Registration

The process of producer company registration involves the following steps:

1. Obtaining Digital Signature Certificate (DSC) and Director Identification Number (DIN)

The first step in the registration process is to obtain a digital signature certificate (DSC) and director identification number (DIN) for all the proposed directors of the company.

2. Name Reservation

The next step is to apply for name reservation of the company through the Ministry of Corporate Affairs (MCA) website. The name should be unique and should not be similar to any other registered company.

3. Preparation of Memorandum and Articles of Association

The next step is to prepare the memorandum and articles of association of the company. These documents contain the rules and regulations governing the company’s operations and management.

4. Filing of Forms

After the preparation of the memorandum and articles of association, the next step is to file the required forms with the Registrar of Companies (ROC) along with the necessary documents.

5. Payment of Fees

The next step is to pay the registration fees along with the filing of forms. The registration fees depend on the authorized share capital of the company.

6. Obtaining Certificate of Incorporation

After the ROC verifies and approves the registration documents, a certificate of incorporation is issued to the producer company. The certificate of incorporation marks the completion of the producer company registration process.

Producer Company Registration: Eligibility Criteria

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To register a producer company, certain eligibility criteria must be met. These include:

1. The producer company should have a minimum of 10 members or two producer institutions or a combination of both.
2. All the members of the producer company should be primary producers.
3. The producer company should have a minimum paid-up share capital of Rs. 5 lakh.
4. The producer company should have a registered office address.
5. The producer company should have a minimum of five directors.

Documents Required for Producer Company Registration

The following documents are required for producer company registration:

1. Memorandum and Articles of Association.
2. PAN card of all directors.
3. Address proof of all directors.
4. Identity proof of all directors.
5. Residence proof of all directors.
6. Digital signature certificate.
7. Director identification number.
8. Board resolution for authorization of directors.
9. Address proof of registered office.
10. No Objection Certificate from the owner of the registered office.
11. Consent of all directors to act as directors of the company.
12. Affidavit from all directors stating that they are not disqualified from acting as directors.
13. Declaration from all directors that they have not been convicted of any offense.

Procedure for Producer Company Registration

The procedure for producer company registration in India involves the following steps:

1. Application for Digital Signature Certificate and Director Identification Number.
2. Name Reservation.
3. Preparation of Memorandum and Articles of Association.
4. Filing of Incorporation Forms.
5. Payment of Registration Fees.
6. Certificate of Incorporation.

It is important to note that the entire process of producer company registration can take around 15 to 20 days, subject to the approval of the Registrar of Companies.

Conclusion

In conclusion, producer company registration can be a great way for agricultural producers to come together and form a legal entity. By registering a producer company, primary producers can access various benefits, such as limited liability, access to finance, and tax benefits. However, the registration process can be complex, and it is advisable to seek the help of a professional to ensure a smooth and hassle-free registration process.

ead more useful content:

• Partnership Registration
• Limited Liability Partnership
• Startup Registration
• Private Limited Company