Producer Company registration in India

A producer company is a legally recognized body of farmers or agriculturists formed to improve their living standards and ensure the profitability of their endeavors. Section 465(1) of the Companies Act, 2013, states that the provisions related to a Producer Company under Part IXA of the Companies Act, 1956, shall continue to apply.

Under the Act, a Producer Company can be established by 10 individuals or more, 2 institutions or more, or a combination of both (10 individuals and 2 institutions), with their business objectives specified under the Act.

A farmer producer company operates as a hybrid between private limited companies and cooperative societies, registered under the Act. It follows democratic governance principles, ensuring that each member or producer has equal voting rights, regardless of the number of shares held.

Separate Legal Entity:

Registration grants the company a distinct legal identity, enabling it to own property, enter contracts, and manage finances independently. This fosters professionalism and facilitates growth.

Tax Benefits:

Producer companies may be eligible for specific tax exemptions and benefits depending on their activities and location (especially relevant in India).

Access to Government Schemes:

Registration unlocks access to various government grants, subsidies, and programs aimed at supporting and promoting agricultural or producer development.

Limited Liability:

Members' personal assets are protected from liability in case of debts or losses incurred by the company. This encourages participation and reduces individual risk.

Investment Opportunities:

The formal structure attracts investments for infrastructure development, processing facilities, or operational expansion, accelerating the company's growth.

• PAN Details of Directors:

Provide PAN details of all directors.

• Identity Proof for Foreign Nationals/NRIs:

Submit a passport as identity proof for directors who are foreign nationals or NRIs.

• Passport Size Photographs:

Include passport size photographs of directors.

• Voter ID Card/Aadhaar Cards:

Supply copies of voter ID cards or Aadhaar cards for directors.

• Address Proof:

Submit address proofs for directors.

• Business Space Address Proof:

For rented business space, provide the rental agreement. For owned business space, submit property papers.

• Registered Office Address:

Ensure the producer company has a registered office address.

• Landlord's NOC:

If the business space is rented, include a No Objection Certificate (NOC) from the landlord.

• Utility Bills:

Submit electricity and water bills for the business place.

• DIN for Two Directors:

Obtain Director Identification Numbers (DIN) for two directors.

• Digital Signature for Two Directors:

Acquire digital signatures for two directors.

• Memorandum of Association/Articles of Association (MOA/AOA):

Prepare and submit the Memorandum of Association and Articles of Association.

• Name Search & Approval:

Conduct a name search and obtain approval for the company name.

• Issue of Incorporation Certificate (CIN):

Receive the Certificate of Incorporation along with the Corporate Identification Number (CIN).

• Company PAN:

Apply for the company's Permanent Account Number (PAN).

• Company TAN:

Apply for the company's Tax Deduction and Collection Account Number (TAN).

1. STEP-1) Ensure Minimum Requirements:

   Confirm the company's minimum requirements, including the number of directors and share capital. Provide directors' basic details: Full Name, Email, and Phone number.

2. STEP-2) Apply for DSC & DIN:

   Initiate the application process for Digital Signature Certificates (DSC) and Director's Identification Numbers (DIN). We'll assist in obtaining these essential documents.

3. STEP-3) Name Approval Application:

   Submit the name approval application, ensuring that the company name includes 'Producer Company Limited'. We'll collaborate with you to finalize this document and ensure successful registration.

4. STEP-4) Submission of MOA & AOA:

   Submit the Memorandum of Association (MOA) and Articles of Association (AOA). We'll work based on the documents provided to complete this submission.

5. STEP-5) Certificate of Incorporation:

   Upon successful registration of all required documents and payment of processing fees, the Registrar of Companies will issue your Certificate of Incorporation.

6. STEP-6) CONGRATULATIONS!!

   Your Producer Company Registration is now complete! You can proceed to apply for PAN, TAN, and open a bank account in the name of your Producer Company.