Producer Company Registration
What is Producer Company Registration?
A Producer Company was introduced in India with the Companies Act, 2013. It gives persons engaged in activities related to produce (what has been grown or produced, particularly by farming) the opportunity to form a company. A producer company can be formed by 10 or more producers (persons involved in, or in activities related to, produce or growth), two or more producer institutions or a combination of 10 or more producers and producer institutions
Such a company can only have equity capital, require a minimum of five directors and an authorised capital of Rs. 5 lakh. The procedure for forming a producer company is similar to the one for forming a private limited company.
The core idea behind creating a Nidhi Company is to receive funds (deposits) from members or lend to them, for the mutual benefit of both parties. All lending and borrowing must comply with rules laid downinChapter XXIV of Company Rules, 2014.
There are five types of Producer Companies.
Production Businesses
Marketing Businesses
Technical Service Businesses
Technical Service Businesses
Infrastructure Businesses
An excellent option for persons involved in any activity related to farming
Five DINs & DSCs
Company Name Reservation
MoA & AoA
SPICe i.e. INC-32 Approval
Company PAN & TAN
Essential Facts on Producer Company
Expect it to take 35 to 40 days to complete the entire procedure. This will, however, depend on whether you have all your papers in order and the workload of the RoC.
Every company has two parts to its name. The first part is unique. For example, 'WIPRO' or 'MERCEDES-BENZ'. The second part describes the business activity of the company. For example, 'Legal Solutions' or 'Technologies'. This second part must be as descriptive as possible. The name of the company must end with 'Producer Company Limited'.
Most importantly, all directors must have an identity and address proof and rights to practice on the property they are operating on. The owner of the registered office will also need to submit an NoC, stating that the company may operate from that location.
This isn't required. The entire process is now automated and handled online. You will receive the DIN numbers and Certificate of Incorporation by e-mail from Ministry of Corporate Affairs (MCA).
All companies are legal entities by themselves. Therefore, they have a continuous existence. The only way a producer company can cease to exist (other than shutting it down voluntarily) is if the annual compliances are not met or if the creditors/courts force its closure.
Yes, a producer company must have its books audited from its very first year. And in case turnover crosses Rs. 5 crore, it must employ a full-time company secretary to manage its affairs.
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Registration Cost
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Standard
5899
All inclusive fees
- GST Registration
- MSME Registration
- Bank Current Account
- LEDGERS Accounting Software
- EQL Business Credit Card
Premium
10899
All inclusive fees
- GST Registration
- MSME Registration
- Bank Current Account
- EQL Business Credit Card
- Trademark Filing