In this article, we shall briefly explain the process of Incorporation of a Producer Company via SPICe+.The Indian economy is agricultural-oriented. Around sixty per cent of the populace in India funds their need through agricultural activities. But, the farmers and primary producers had gone through a lot of hardship in India.
To address these critical issues, the Indian Government established an expert committee led by Y.K. Alagh (an economist) to analyze the situation. Consequently, in the year 2002, the committee came up with the concept of Producer companies.
Since then, they have assisted farmers & primary producer gain access to credit, input, market, production technology etc.
What is Producer Company Registration?
In India, people have direct or indirect dependence on the agricultural field. But still being the fast-growing nation, farmers in India lacking access to improved technology and are scattered unevenly. The lack of necessities, including crop and technologies, often compel farmers to take their own life. Looking back to this severe difficulty, the Government has set up an expert committee to resolve the farmers’ pressing issues.
A producer company refers to a company that is registered under the Companies Act with common objectives of procurement, agro production, post-harvesting errands, import goods, selling and export of primary production of the members to reap more benefits.
A producer company consists of a committee of 10 or more individual and two institutions with a mutual goal of dealing with agricultural & post-harvesting activities. In laymen terms, it is referred to a group of farmers who collectively works for their better living.
Prerequisites related to the incorporation of a Producer Company in India
- Ten or more than ten individuals
- Two or more than two institutions
Pre-registration requisites for the incorporation of a Producer Company
- Minimum no. of 10 members & 5 directors should be there.
- Minimum paid-up capital amounting Rs. 5 Lakhs
- The former company should only have equity share capital.
- Such companies cannot acquire the status of a public company.
- There ought to be a minimum of 4 boards meeting per year, i.e. every three months. The company must stick to this frequency of conducting the board meeting.
Documents Required for the Incorporation of a Producer Company
- Permanent Account Number/Voter ID/Passport of all the shareholder and Directors.
- Updated bank statement
- Voter’s ID/Passport/DL of all the shareholder and directors.
- Passport-sized photos of all the shareholders & Directors.
- Copy of any Utility bill such as electricity or gas bill as a residential proof
- In the case of a rented property, a copy of the Rent agreement & NOC from the owner
- In case of owned Property, Property Papers’ copy.
Procedure to be Followed for Incorporation of a Producer Company via SPICe+ form
The producer company registration process is more or less identical to that of privately held entities. The steps below will help you complete the incorporation process of the producer company without any hassle.
Steps for incorporation of a Producer Company via SPICe+:
Step 1: SPICe+ Login
- First, visit the MCA portal and then select MCA services followed by the SPICe+ form.
- Select “New Application” in case of new company registration.
- By choosing the existing application, the user will come across an application along with an approved/prosed name.
Step 2: Spice+ Part A
- Once you select the new application, SPICe+ Part A gets a prompt on your screen enclosing fields related to name reservation.
- User fills in the information of class, type, category & proposed name of the firm & hit the Auto check button. The portal then performs first level scrutiny of the proposed name against the predetermined norms from its database.
- After the user can submit the name reservation and proceed for incorporation. The portal then opens a web form that contains different sections.
Step 3: SPICe+ Part B
- Each section of Part B entails the ‘Save and continue button. Check form validations shall occur on each section.
- Enter the required information of the firm to be registered, such as Correspondence Address, Details related to capital, and Subscribers and directors details.
- Next, provide info regarding the Permanent Account Number (PAN) and Tax Deduction Account (TAN).
- Upload the soft copy of the mandatory documents in the form.
- Give consent to the relevant declarations and then select pre-scrutiny at the bottom of the page.
- Once pre-scrutiny is validated, hit the Submit button. A confirmation message shall appear on your registered contact details.
- User can then get the Spice+ Part-B pdf on their system from the dashboard for affixing DSCS.
- This will activate all the relevant linked forms that user can fill and submit based on information furnished in Part-B.
Step 4: AGILE –PRO:
AGILE, i.e. Application for Goods and Services identification numbers, employees state insurance corporation registration & Employees provident fund organization registration. The AGILE –PRO web form is the replacement of the old AGILE form (INC-35).
AGILE PRO needs to be filed as linked with Spice+ for:
- Registration with GSTIN.
- Registration with EPFO.
- Registration with ESIC
- Professional Tax Registration.
- Bank account number.
Step 5: eMoA and eAoA form
- Electronic Memorandum of Association (aka eMoA) is a charter of the company that is required to be filed as a linked form to Spice+.
- Electronic Articles of Association (eAoA) that outline policies around the company’s internal affairs can be filed as a linked form to SPICe+.
Step 6: URC-1 INC-9 PDF generation
In the case of Part-I companies, it is necessary to file a URC-1 form enclosing the details of the existing entity.
Based on the detail entered in Part B regarding subscribers and directors, the INC-9 declaration form shall populate automatically & and accessible in the user’s dashboard to download & affix DSCs.
Step 7: Spice + Upload
After affixing Digital signature certificates in Part B pdf and other linked form, click on the option called upload forms.
Upload Part-B pdf along with all relevant linked forms.
Upon successful uploading, a unique service request number, aka SRN shall prompt on the screen.
If the web-based forms seek resubmission due to any error identified upon processing, the SPICe+ form must be submitted in the manner mentioned above. For any doubt or clarification regarding Incorporation of a Producer Company in India, feel free to have a chat with CorpBiz’s professional.