Producer Company Overview
The Companies Act defines Producer as any person engaged in any activity connected with or relatable to any primary produce (Produce: “things that have been produced or grown, especially by farming”). A Producer Company is thus a body corporate having an object that is one or all of the following:
- production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit.
Further, the Producer Company must deal primarily with the produce of its active Members and is allowed to carry on any of the following activities by itself or through other entities – on behalf of the members.
- processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its Members;
- manufacture, sale or supply of machinery, equipment or consumables mainly to its Members;
- providing education on the mutual assistance principles to its Members and others;
- rendering technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its Members;
- generation, transmission and distribution of power, revitalisation of land and water resources, their use, conservation and communication relatable to primary produce;
- insurance of producers or their primary produce;
- promoting techniques of mutuality and mutual assistance;
- welfare measures or facilities for the benefit of Members as may be decided by the Board;
- any other activity, ancillary or incidental to any of the activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner;
- financing of procurement, processing, marketing or other activities which include extending of credit facilities or any other financial services to its Members.
Producer Company Registration
To register a Producer Company in India, the following members in any of the combination is necessary:
- Ten or more individuals, each of them being a producer; or
- Two or more producer institutions; or
- A combination of ten or more individuals and producer institutions
The registration process for a Producer Company is then similar to that of a Private Limited Company. DSC and name approval must first be obtained. The name of a producer company must end with the words “Producer Limited Company”. Once, name approval is obtained from the MCA, application for incorporation can be filed in the prescribed format for incorporating the Producer Company.
If the Registrar is satisfied with the application for incorporation of Producer Company, then he/she will approve the same and issue Certificate of Incorporation. Once, a producer company is incorporated, it shall function similar to a private limited company subject to certain provisions. However, unlike a Private Limited Company, a Producer Company does not have a limit on the number of members. Further, though the name of a Producer Company ends with the words “Producer Limited Company”, it shall under no circumstance become or be deemed to become a public limited company.
9 Articles to Read Before Producer Company Registration
Incorporation Process
Overview of Producer Company in India and the procedure for registration of a Producer Company. Nsc India can help register a Producer Company in India.
Documents Required
List of documents required for company registration in India. Documents required for Indian or Foreign Director, registered office and shareholder in company.
NABARD Loan
The concept of Producer Company was introduced to allow farmers cooperatives to function as a corporate entity under the Ministry of Corporate Affairs. NABARD provides special assistance and loan for Producer Company or Producer Organisation through the Rs. 50 crore Producer Organisation Development Fund.
Capital Requirements
Difference between authorised capital vs paid up capital explained in detail with an illustration. Visit Nsc India to know more about authorised capital.
Commencement
The Ministry of Corporate Affairs has re-introduced the concept of commencement of business certificate in 2019. All companies registered are now required to obtain commencement of business certificate before commencing any business or exercising any borrowing powers.
Company Compliance’s
List of all private limited company compliance, 2019 due dates and non-compliance penalty. Private limited companies registered in India must file their annual return (MGT-7 and AOC-4), income tax return, INC-22A and DIN eKYC for the Directors.
GST Registration
GST registration procedure, eligibility and documents required. Entities with an annual revenue of more than Rs.20 lakhs must obtain GST registration. Complete your GST registration online with expert help from Nsc India and obtain your GSTIN in less than a week from the comfort of your home.
GST Return Filing
File GST return online through Nsc India with GST Expert Support. You can prepare and file GSTR-1, GSTR-2, GSTR-3 and GSTR-4 return online through Nsc India. In addition to filing GST returns, you can also issue GST invoices and record purchases on LEDGERS to automatically file GST returns.
Trademark Registration
Online trademark registration, trademark search, documentation and Expert help for TM filing. Easily submit your trademark application for just Rs.5988 in less than a day from the comfort of your home. Nsc India provides a range of trademark services from trademark filing to objection handling.