Producer Company Registration Process in India [2020] - Onfiling
Special Corporate

Producer Company

Overview

What is Producer Company?

Producer Company means a person engaged in any activity connected with any primary produce. 

"Producer Company" means a body corporate having objects or activities specified in section 581B and registered as Producer Company under this Act; “Any ten or more individuals, each of them being a producer or any two or more Producer institutions, or a combination of ten or more individuals and Producer institutions, desirous of forming a Producer Company having its objects specified in section 581B and otherwise complying with the requirements of this Part and the provisions of this Act in respect of registration, may form an incorporated Company as a Producer Company under this Act.”

What are the features of the Producer Company?

  • Allows farmer cooperatives to function as a corporate entity.
  • The objective of Producer Company is production, harvesting, procurement, pooling, grading, marketing, selling and import/export of primary produce.
  • Manufacture or sale of machinery
  • Promoting techniques of mutual assistance
  • Offering technical services, training, R&D for the promotion of interests of members

Advantages

  • A producer company has a minimum number of five directors and the maximum number is 15 directors.
  • Members will receive a value for the product or products supplied as determined by the Director.
  • Members of Producer Company are also eligible to get the financial assistance by way of credit facility.
  • Members can have bonus shares in proportion to the amount held by them.

Disadvantages

  • The producer company faces a problem in terms of capital as they are not capitalist.
  • One person in this company cannot make his own decision without the consent of others.

What is the registration process of the Producer Company?

Obtain DSC and DIN

To obtain the Digital Signature Certificate and director identification number from all the Directors with self-attested copies of documents like PAN, Aadhaar card, and contact details.

Proposed Company name

FORM-1A is filed for proposed company name with the ROC of the respective state with the prescribed fee. After that the ROC informs about the availability of the name.

Draft the necessary documents

MOA is drafted to incorporate the objects of the company and the amount of share capital to be registered, and AOA to contain the by-laws of the company.

Filing of other documents

Other documents such as statutory declaration in the Form-1 declaring compliance of all and incidental matters regarding the formation of companies; affidavit signed by the subscribers of the proposed company. Director’s consent, utility bill, and NOC are required.

Issue of Certificate

Certificate will be issued and company will become a corporate body as a private limited company. Under any circumstances, it cannot become a public limited company.

What is the common registration process of the Producer Company?

Shops & Establishment Registration

Every shop and the commercial establishment are required to obtain establishment registration with the Labour Department within 30 days of starting their business. It is mandatory for all states in India.

Trade License

No one should be adversely affected by health hazard and nuisance by the improper carrying of trade a License is necessary from the municipality within 30 days of starting the business.

Professional Tax Registration

Specific legislation has been passed by majority state governments to impose a tax on profession, employment of calling of any nature, however, and the fees for it is Rs. 2500 per annum.

Goods and Services Tax (GST)

GST Registration is mandatory for each business engaged in providing services or supply of products, where the turnover exceeds Rs. 40 Lac.

Food License / FSSAI Registration

During a business of producing, trading, storing, or dealing in any manner of food items, then the state level FSSAI registration or Central License is mandatory based on the turnover.

Drug License

This location-based Drug License is granted by the State Government based on fulfilling certain norms and criteria. No entity can start or continue the sale/trade of medicine without a drug license.

Private Security Agency License

Private Security Agency may be a lucrative business with immense potential; however, it can be started or continued only after obtaining a license from the competent authority as designated by the state government.

Import Export Code (IEC)

IEC is a ten-digit pan based registration with the DGFT. IEC is a mandatory prerequisite to start a business of Import or Export in India. Only one IEC code can be issued against a pan.

FAQS

Producer Company can be formed by any 10 or more producers or individuals. Also there is no limit on the maximum number of members.
Designate director shall hold office for a minimum of one year and maximum is for 5 years.

List of Documents

  • PAN Card of Director 1
  • Email ID
  • Contact details
  • Aadhaar Card of the Director
  • Scanned Photograph

Pricing Plan

BASIC ₹45899
One Time

  • 10 Class 2 Digital Signatures & 10 DIN
  • 1 RUN Name Approval 
  • Incorporation Fee, Stamp Duty & Incorporation Certificate
  • Upto 10 Lakhs Authorized Capital 
  • GST Registration & GST eWay Bill Software
  • PAN, TAN & Bank Account Opening
  • 50+ Document Formats & Incorporation Kit
  • Hard-copy Share Certificates
Get Plan

SILVER ₹49899
Yearly

  • INCLUSIVE OF BASIC PACKAGE
  • One year TDS filing
  • -
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Get Plan

GOLD ₹59899
Yearly

  • INCLUSIVE OF SILVER PACKAGE
  • Book Keeping & Accounting upto 800 entries
  • -
  • -
  • -
  • -
  • -
  • -
Get Plan

PLATINUM ₹79899
Yearly

  • INCLUSIVE OF GOLD PACKAGE
  • Book keeping & Accounting Software upto 2000 entries
  • Payroll Software upto 20 employees
  • -
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Get Plan

Disclaimer : 1) Class 2 digital signature from eMudhra with 2 year validity along with ePass 2003 token. 2) Statutory Auditor fee is payable on actuals directly to the Independent Auditor appointed by the Board of Directors. Onfiling will only be responsible for accounting, preparation of financial statements and filing of returns on behalf of the Company. 3) Upto 4 name options can be given in 1 RUN name approval request. 4) Additional Directors can be added for an additional price of Rs.999 - if DSC & DIN is available. In case no DIN or DSC is available, cost for adding additional Director will be Rs.1999, inclusive of GST. 5) Authorised capital is the amount of shares a company can issue at anytime and can be increased further in the future. Paid-up capital is the amount invested by shareholder and can be even Rs.2. 6) Additional authorised capital can be purchased if required at time of incorporation 7) In case of incorporation in Madhya Pradesh, an additional stamp duty of Rs.7550 will be applicable. In case of incorporation in Punjab, an additional stamp duty of Rs.15025 will be applicable. In case of Kerala, an additional stamp duty of Rs.3025 will be applicable.

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