The agriculture sector despite being the base of the Indian economy did not experience the much-needed support and facilities. With the rise in issues with these primary producers of the country, it was necessary for the government to introduce a certain mechanism to support a significant contributor to the country’s GDP. The answer to this was Producer Company Registration. In 2002, the concept of Producer Company was introduced and the primary producers gained access to the input, credit, production technology, market, etc. of production. In this blog we are going to discuss about how to apply for online producer company registration in India.
To obtain the status of a producer company, the body corporate involved in activities of production, pooling, marketing, selling, export, etc., needs to undergo a mandatory Producer Company Registration process.
What is A Producer Company?
A producer company is a type of cooperative society formed by the primary producer acknowledging themselves as a body corporate. These producer companies carry out works such as production, harvesting, grading, pooling, marketing, selling and other activities related to the primary product of the company.
A producer company has been defined by the Companies Act under Section 581A (1). It defines a producer company as a body corporate moving forward with the objectives specified in Section 581B of the said act. The objectives specified in the said Section are in existence only to provide assistance to its members.
What are the Objectives of a Producer Company?
- The first and foremost objective of a producer company is the production, harvesting, procurement, grading, pooling, handling, marketing, selling and export and import of the primary product of the company and any goods and services related thereto.
- It moves forward with the principle of mutual assistance amongst its members.
- It is involved in the generation, transmission and distribution of power, land and water resources.
- A producer company among other benefits works for the benefit and growth of its members and helps promote its products.
Benefits of Online Producer Company Registration in India
- Support to the primary businesses.
- Easy loan facilities to the members of the company.
- Profit allocation amongst the members of the company.
- Taxation benefits, etc.
Requirements for Online Producer Company Registration
As per Section 581C of the Companies Act, to form a producer company
- At least ten or more producers are required, or
- Any two or more producer institutions are required, or
- Ten or more individuals and a producer institution are required.
Documents Required For Online Producer Company Registration in India
- PAN number and photographs of each of the members of the company – To prevent any case of fraud and proper filing of taxes, the PAN number and photographs of each of the members of the company are needed.
- Identity and address proof – Aadhaar card, driving license, etc. to maintain the authenticity and prevent any kind of misrepresentation.
- Producer proof – To represent the authority to indulge in production activities, producers’ proof is required.
- Address proof of registered office – To maintain formal communications with the government and other bodies and to maintain the authenticity of the company, address proof of registered office is necessary.
- Rent or lease agreement – In case the registered property is not an owned but a rented or on lease property, a rent or lease agreement is required.
- No Objection Certificate from the property owner – In case the registered property is a rented or leased property, a No Objection Certificate from the true property owner of the property is required.
Producer Company Registration in India
Meeting all the pre-requisites for a Producer Company Registration, the company is needed to compile all documents and move towards the Producer Company Registration online. The process of a Producer Company Registration is also mentioned in Section 581C of the Companies Act.
The process of a Producer Company Registration is similar to that of any other form of company registration revolving around the DSC, the DIN, approval of company name, submission of documents and finally the incorporation of the company.
The online application through the MCA portal can be done by a Spice+ e-form. One part of which includes the approval of the company name and the other includes documentation processes such as DIN, PAN and TAN allotment, EPFO and ESIC registration, opening accounts and incorporation of the company.
The process of an online method of Producer Company Registration is as follows:
Step 1: Obtaining Digital Signature Certificate issued by MCA.
Step 2: Obtaining Director Identification Number issued by MCA.
Step 3: Reserving company name, filing up an INC 1 form.
Step 4: Collecting necessary documents. Memorandum and Articles of Association.
Step 5: Incorporation of the company through Registrar of Company, filling up INC and DIR forms at MCA.
Step 6: Grant of incorporation certificate – Upon the satisfaction of the registrar with all the submissions made, the MOA and AOA, the incorporation forms, etc. are submitted and a certificate of incorporation is issued within 30 days of the receipt of the registration documents.
A registered Producer Company in India is to be treated as if it were a private limited company and not a public limited company.
Producer Company Registration is not only a way to benefit the members of a producer company, but also a key to benefiting the larger producer sector and the country’s economy. Incorporated as a private limited company, it focuses on the profits of the members of the company. Regulated by the Companies Act 1956 and 2013, the act sufficiently mentions the objectives, the requirements and the registration of a producer company. Today availing of the benefits issued is much easier by the way of online filings. An online Producer Company Registration saves time, the cost of application and the complications of a physical registration. As discussed above, online Producer Company Registration in India is a step towards the betterment of the producer sector. For further queries, be sure to contact Bizadvisors.
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