What is producer company | Documents | Procedure | Unilex
What is Producer Company
Maker Company Producer Company is an organization enlisted under the Companies Act, 2013, which has the goal of creation, reaping, acquisition, advertising, moving, fare of essential produce of the individuals or import of products or administrations for their advantage. It is legitimately perceived assortment of ranchers/agriculturists with the plan to improve the standard of their living, and guarantee a decent status of their accessible help, livelihoods and their gainfulness. It comprises of gathering of individuals engaged with the generation of essential produce or having at least one goals identifying with essential produce. In a Producer Company, you can make agriculturist individuals and acknowledge stores in type of RD/FD and give them development just as circulate credits to your rancher individuals and charge enthusiasm from them.
Advantages of Producer Company Registration:
- Separate Legal Entity – A producer company is a separate legal entity established under the companies act. Therefore, a producer company has wide legal capacity and can own property and also incur debts in its own name. The members (Directors) of a producer company have limited liability to the creditors of a producer company.
- Easy Management – The board of Management can easily file the E – FORMS with the Registrar of Companies. If there is any changes in the Board of Management , the board can easily files the forms with the ROC.
- No Restriction to Sell- A registered Producer Company can easily own, sell, enjoy or transfer a property in its own name.
- Accepting Deposit – A producer Company can accept deposit in the form of RD/FD, and give maturity as well as distribute loans to its farmers / agriculturist members, and charge reasonable interest from them.
- Perpetual succession – A producer Company has perpetual Succession , that is continued or Uninterrupted existence until it is legally dissolved. A producer company being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership .
- Creditability – Government provides greater creditability to producer companies than that provided by unregistered producer organisation.
- Bonus shares – Members will be eligible to receive bonus shares in proportion to the shares held by them
Features of the Producer Company:
- All Producer Companies are private limited companies .
- Producer company cannot be converted into other entity types such as public company, nidhi company etc.
- Though it is Private limited company, its members can be more than 200 members.
- The minimum paid up capital is Rs. 5 lakh.
- The share capital of Producer Company shall consists of equity shares only .
- The shares held by a member of a producer company , shall be in proportion to the capital contribution in the company.
- The Minimum of 5 directors is required. The maximum Number of directors is 15 .
- A full time chief executive should be appointed by the board and shall be entrusted with substantial powers of management as the board may determine.
- Every Producer company can take the advantages of various central and state government schemes like National food security mission and so on.
- Dispute relating to producer companies are to be settled by conciliation or arbitration under the Arbitration and Conciliation Act, 1996 as if the parties to the dispute have consented in writing to such procedure .
- Producer companies shall out an internal audit of its accounts, at regular intervals in accordance with its articles of association and such an audit shall be carried on by a chartered accountant.
Documents Required for Producer Company :
- Identity proof of Directors & Shareholders –
- PAN for Indians & Notarised Passport copy of Foreigners
- Address proof of directors and Shareholders –
- Passport , Aadhar , Utility Bill , Bank Statement
- Proof of Registered Office of India
- Rent Agreement or sale deed , No objection certificate from the landlord for using the premises .
Procedure of Producer Company Registration :
DSC is the digital signature used for electronic submission of the company related documents and is granted to anyone authorised person of the proposed company. DIgital signatures are mandatory to obtain for every Directors in the producer company.
- A producer company should be named using the following suffix “Producer Company Limited “ appropriately indicating its status of producer company.
- Any Suitable name should be selected for registration, subject to certain guidelines
- The ROC will provide an online generated written confirmation of the name he would allow the proposed indian company to use.
- For Incorporation of producer companies, Form INC-7 shall be used.
- MOA & AOA will be drafted as per regulations.
- Affidavit from subscribers and first directors in INC 9
- Consent to act as a director in form – DIR 2
- Payment of requisite fee to ROC
- Certification of Incorporation is issued after verifying all the documents with ROC.
For how much time a company has its existence or validity under law?
Once a company is incorporated, it will be active and in existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with the company will become a dormant company and maybe struck off from the register after a period of time. A struck off company can be revived for a period of 20 years.
The process of Incorporating a producer company can be time – consuming process. Take assistance from Unilex Consultants to easily start up your business.