Company Registration of Producers in India: Empowering Farmers and Producers Introduction
A Producer Company is a corporate entity, specially dealt with under the provisions of the Companies Act, 2013, for the benefit of farmers and producers of agricultural produce, farming, and allied activities. This enables the producers to associate with each other for such activities related to the production, procurement, harvest, grading, handling, marketing, sale, and export of their produce. The incorporation of a Producer Company allows the small farmers or producers entry to a more organized marketplace, modern technology, finance, and price.
At YKG Corp, we provide consultancy services for agricultural producers, cooperatives, and owners of small businesses to form a Producer Company to support increased production by the producers, and access to good markets, thereby enhancing their financial position.
Key Features of a Producer Company:
- Incorporated under the Companies Act, 2013
- Limited liability for all producer members
- It was essentially formed to promote and support the collective interests of small producers.
- This provides better prices for the producers of the goods and improved access to technology as well as infrastructure
- This form of company structure is allowed to avail of tax benefits and also government support through subsidies
Advantages of Registration of a Producer Company
- Limited Liability: The members of a Producer Company have limited liability and this would imply that the personal assets are safe and their liability is limited to the extent of their shareholding.
- Collective Bargaining Power: A Producer Company allows the small-scale producers to collectively market their produce, and have access to better resources and better prices for their produce.
- Access to Financial Assistance and Government Schemes: The government grants subsidies, grants, and low-interest loans to Producer Companies towards rural development, agriculture, and co-operative farming.
- Better Infrastructure: As a legal entity, Producer Companies can easily invest in infrastructure, equipment, and modern farming techniques, resulting in more efficient and high-quality production.
- Better Market Access: The Producer Company provides its members the opportunity to sell in larger markets, sell directly, and participate in national and international trade without the use of intermediaries.
Who Can Form a Producer Company?
- Primary Producers: A Producer Company can be formed by at least 10 or more individual producers or 2 or more producer institutions. The number of producers for incorporation of the company must be at least 10.
- Directors: The minimum and maximum number of directors in a Producer Company would be 5 and 15, respectively.
- The subject of Primary Objective: The company needs to be concerned primarily with the production, harvesting, procurement, processing, and marketing of products of the members who are active producers in the company.
Requirements for Directors/Shareholders:
- PAN Card-for Indians
- Passport for foreign nationals
- Identity Proof-Aadhar Card, Voter ID, Passport, or Driver's License.
- Address proof statement, Utility Bill, etc.
- Passport-sized photographs
Requirements for the Company:
- Proposed name of the company
- Memorandum of Association (MOA) and Articles of Association (AOA) with regard to the objects and internal management rules of the company
- Proof as to the registered office address, which may include Rent Agreement, Electricity Bill, etc.
- No Objection Certificate (NOC) issued by the owner of the property, in case it is hired/ rented
Process of Producer Company Registration Process in India
1. Obtain DSC (Digital Signature Certificate)
2. Obtain DIN (Director Identification Number)
3. Name Reservation
4. Draft MOA and AOA
5. Filing Application with MCA
6. Incorporation Certificate
Compliance Post-Incorporation of Producer Companies
With the incorporation of your Producer Company, you shall comply with certain legal compliances, such as:
- Annual General Meetings: You will have to conduct regular AGMs to update the members on the progress of your company and its financial positions.
- Filing of Annual Returns and Financial Statements with RoC: Filing of Annual Income Tax Returns with the tax department. The requirement of audit of books of accounts of the company to be conducted by a qualified auditor every year.
Why Choose YKG Global for Registration of Nidhi Company?
- Expert Consultation: Our team of experienced professionals offers personalized consultation that guides you properly to make the right decisions for your business.
- Competitive Pricing: We ensure that our pricing is transparent, with no hidden charges, so that you receive true value for money.
- Fast and Smooth Process: Our seamless processes ensure that your Producer company gets registered within the time limit.
