What is a Producer Company?
A Producer is any person engaged in any close-knit or related activity to the primary producers. A Producer Company is thus an umbrella term that includes all of the following.
Producing, harvesting, procurement, grading, pooling, handling, marketing, selling, exporting the primary producers of the members, or the imports of goods or services.
Producer Company Aims at
The producer company primarily deals with the production of its active members. It is allowed to carry on any of the following activities by itself or through other entities on behalf of the members.
- Processing includes preserving, drying, distilling, brewing, vinting, canning, and packaging its members’ produce.
- Manufacture, sale, or supply of machinery, equipment, or consumables mainly to its members
- Provide education to the mutual assistance principle to its members and others
- Render technical services, consultancy services, training, research and development, and all other activities to promote its members’ interests.
- Activities for the promotion of the interest of its members
- Generating, transmitting, and distributing power, revitalizing land and water resources, using conservation and communication, are 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 decided by the board
- Any other activity, ancillary or identical to any of the actions which promote the principles of mutual assistance among the members in any different manner
- Financing of procurement, processing, marketing, or other activities which include extending of the credit facilities or any other financial services to its members.
How to Incorporate a Producer Company in India?
The registration process for Producer Company and Private Limited Company is very similar.
- The first step is to obtain the DSCand DIN for the Producer Company’s proposed first Directors.
- An application for name reservation can be filed with the Registrar of Companies (ROC) after obtaining the DSC and DIN.
- The name should end with ‘Producer Limited Company’.
- After receiving the ROC’s name approval, file the incorporation application in the prescribed format for incorporating the Producer company.
- The Certificate of Incorporation is issued if the registrar is satisfied with the application for the Incorporation of the Producer company.
The functioning of the producer company is similar to the Private Limited company. But unlike the Private Limited companies, there is no limit on the number of members.
Even if the Producer Company’s name ends with the words “Producer Limited Company”, it shall under no circumstance become or be deemed a public limited company.
Documents Required for Producer Company Registration
For Directors and Shareholders
- Scanned Copy of PAN Card
- Scanned copy of Voter’s Id/ Passport/ Driver’s license
- Scanned copy of the latest bank statement/ Telephone or mobile bill/ electricity or gas bill
- Passport size photograph
For the Registered Office
- Scanned copy of the Latest Bank Statement/ Telephone bill or Gas bill
- Scanned copy of the notarized rental agreement
- Scanned copy of the NOC from the property owner
- Scanned copy of sale deed or property deed