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Producer Company Setup

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Unearthing Prosperity Through Unity: For India's dedicated producers, registering a Producer Company isn't just a formality; it's a strategic move towards empowering their collective potential. This unique business structure, enshrined in the Companies Act, 2013, acts as a catalyst for growth, enabling producers to band together, leverage their combined strength, and navigate the market with newfound confidence. Whether you're cultivating fertile fields, crafting exquisite handicrafts, or mining valuable resources, embarking on this collaborative journey through a Producer Company unlocks a treasure trove of benefits that can transform your individual endeavors into a thriving collective enterprise.
Unlocking the Gates of Eligibility:

To embark on this path, your group must meet specific criteria:

  • A Community of Ten: At least 10 individuals actively engaged in similar primary production activities, or two or more producer institutions, can join hands to form a Producer Company.
  • Defining the “Producer”: Each member must embody the true spirit of production, directly or indirectly participating in the creation of agricultural or primary non-agricultural products.
  • Laying the Financial Foundation: To fuel this collaborative engine, a minimum share capital of Rs. 5 lakh is required.
Benefits Blossoming from Registration

Once your Producer Company stands firmly on its registered foundation, a multitude of advantages blossom:

  • A Distinct Identity: Your company gains a legal persona, separate from its members, empowering it to engage in contracts, own assets, and secure funding with greater ease.
  • Credibility Takes Root: As a registered entity, your Producer Company inspires trust and confidence in stakeholders, opening doors to lucrative markets and valuable resources.
  • Collective Bargaining Power Flourishes: By uniting under one banner, your collective voice resonates louder, allowing you to negotiate fairer prices, secure advantageous deals, and influence market dynamics in your favor.
  • Financial Rainclouds Part: Government grants, subsidies, and tax concessions become readily accessible, nurturing the financial health of your Producer Company.
  • Democracy Takes Root: Each member holds a vital stake in the company’s decisions, fostering transparent governance and shared leadership.
Charting the Course to Registration:

With a clear understanding of the benefits and eligibility requirements, let’s delve into the step-by-step process of registering your Producer Company:

  1. Choosing a Name that Resonates: Select a unique and legally compliant name for your company, adhering to the Ministry of Corporate Affairs (MCA) regulations. Obtain formal name approval to embark on your journey with confidence.
  2. Drafting the Blueprint: Craft the Memorandum of Association (MoA) and Articles of Association (AoA), meticulously outlining your company’s objectives, capital structure, and internal governance rules. This foundational document serves as the roadmap for your collective endeavor.
  3. Equipping Yourself for the Digital Domain: Each director must acquire a Digital Signature Certificate (DSC) to facilitate online filing and document authentication. This secure digital identity ensures smooth interaction with the MCA portal.
  4. Earning Your Director Identification Number (DIN): Each director needs to obtain a DIN issued by the MCA, acting as a unique identifier within the corporate world.
  5. Embracing the SPICe+ Advantage: File the SPICe+ form electronically on the MCA portal, along with the MoA, AoA, and other required documents. This online platform streamlines the registration process, eliminating logistical hurdles.
  6. Fulfilling Your Financial Commitment: Pay the prescribed registration fees to the MCA, ensuring your official entry into the corporate landscape.
  7. Celebrating the Culmination: Upon successful registration, the MCA issues a Certificate of Incorporation, officially recognizing your Producer Company as a thriving legal entity.
Documents Nourishing Your Application:

Ensure your registration journey is smooth by assembling the necessary documents:

  • PAN cards and address proof of all members and directors
  • The meticulously drafted MoA and AoA, duly stamped and signed
  • Proof of your registered office address, grounding your company in the physical world
  • Evidence of each member’s producer activity, showcasing the heart of your collective endeavor
  • Bank statements of both the company and its members, demonstrating financial stability
  • The directors’ DSCs and DINs, facilitating secure online interactions
  • A challan confirming the payment of registration fees

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*Fee is inclusive of Government Fee, Out of Pocket Expenses, Professional Fee and GST.
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/Including Govt. Fees

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*Fee is inclusive of Government Fee, Out of Pocket Expenses, Professional Fee and GST.
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/Including Govt. Fees

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*Fee is inclusive of Government Fee, Out of Pocket Expenses, Professional Fee and GST.
Common Questions

Most Popular Questions

A Producer Company is a type of corporate entity formed by primary producers engaged in agriculture, horticulture, animal husbandry, or other rural activities, for their mutual benefit.

Any group of ten or more individuals, or two or more institutions, engaged in primary production activities can form a Producer Company.

The primary objectives include facilitating better income for producers, improving their bargaining power, enhancing productivity, and promoting collective action.

The process involves obtaining Digital Signature Certificates (DSC), Director Identification Numbers (DIN), name approval, drafting Memorandum and Articles of Association, and filing incorporation documents with the Registrar of Companies.

Producer Companies must hold annual general meetings, maintain proper accounting records, file annual returns, and comply with regulatory requirements under the Companies Act.

The liability of members in a Producer Company is limited to the extent of their unpaid share capital.

Yes, a Producer Company can distribute profits to its members in proportion to their participation in the business activities of the company.

Advantages include limited liability protection, access to credit and government schemes, collective bargaining power, and better market opportunities.

Yes, subject to compliance with regulatory requirements, a Producer Company can be converted into a Private Limited Company or any other business entity.

Company Avenue Advisory offers specialized assistance in Producer Company registration, including documentation, compliance, and liaison with regulatory authorities, ensuring a smooth and efficient registration process.

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