Producer Company Registration: A Complete Guide

Introduction

A Producer Company is a legally recognized entity formed by farmers, agriculturists, or producers to enhance their collective growth and prosperity. Governed under the Companies Act, 2013, a Producer Company ensures better income opportunities, market access, and improved bargaining power for its members. This article outlines the procedure, benefits, and requirements for registering a Producer Company in India.

What is a Producer Company?

A Producer Company is an organization established by primary producers such as farmers, artisans, or fishermen. The objective is to engage in activities related to production, harvesting, procurement, grading, pooling, handling, marketing, selling, and exporting goods or services for the benefit of its members.

Key Features of a Producer Company

1. Minimum 10 Members: A Producer Company must have at least 10 individual members or 2 institutions (such as cooperatives or other producer companies).

2. No Maximum Limit: There is no upper limit on the number of members.

3. Limited Liability: The liability of members is limited to the amount of shares they hold.

4. Separate Legal Entity: It enjoys a distinct legal identity separate from its members.

5. Perpetual Existence: It continues to exist even if members change.

6. Only Producers Can Hold Shares: Only those engaged in primary production can become members and shareholders.

Benefits of Registering a Producer Company

• Better Market Opportunities: Collective production and marketing help in reducing costs and improving revenues.

• Access to Government Schemes: Various subsidies and grants are available for producer companies.

• Financial Assistance: Banks and financial institutions provide easier credit access to registered producer companies.

• Tax Benefits: Certain agricultural-related activities enjoy tax exemptions.

• Professional Management: A Board of Directors manages the company, ensuring efficient operations.

Steps for Producer Company Registration

Step 1: Obtain Digital Signature Certificate (DSC)

Since the registration process is online, obtaining DSC for all directors is essential for digitally signing documents.

Step 2: Obtain Director Identification Number (DIN)

All proposed directors must acquire a DIN from the Ministry of Corporate Affairs (MCA).

Step 3: Name Reservation

The company must apply for name approval through the MCA portal using the RUN (Reserve Unique Name) service. The name should include “Producer Company Limited.”

Step 4: Prepare and File Incorporation Documents

Documents such as the Memorandum of Association (MOA), Articles of Association (AOA), PAN, Aadhaar, bank details, and declaration forms must be submitted to the MCA.

Step 5: Certificate of Incorporation

Upon approval, the MCA issues a Certificate of Incorporation (COI), officially recognizing the Producer Company.

Step 6: Apply for PAN, TAN, and Bank Account

After incorporation, the company must obtain a Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN), and open a bank account.