Producer Company Registration

This was introduced with the Companies' Act of 2013 in India and it provides an opportunity for the people who are engaged in producing, such as farming, where they are growing and producing to form a company.

  • 5 DSCs and DINs

    All of the 5 directors should be registered with the MCA.

  • Reservation of Company Name

    We can assist you in choosing a unique company name.

  • MoA & AoA

    We can assist you in creating the constitution for your company.

  • Approval for INC-32 and SPICe i.e.

    This incorporates your company.

  • TAN & PAN of your company

    A request will be sent by us to the NSDL.

  • -Easy Payment Options Available
  • -No Spam. No Sharing. 100% Confidentiality

What is Producer Company Registration?

This was introduced with the Companies' Act of 2013 in India and it provides an opportunity for the people who are engaged in producing, such as farming, where they are growing and producing to form a company. It can be formed by at least ten or more than ten, producers or at least more than two institutions of producers or even by a combination of at least ten or more than 10 producers' institutions or producers. A company like that is required to have equity capital, authorized capital of about 5 lakh and a minimum of about 5 directors. The process of producer company registration is similar to forming a private limited company in a lot of ways.

Producer Company Registration Types

  • Production Business
  • A typical producer company is engaged in the production, manufacture or procurement of primary products which are given for sale to others.

  • Marketing Business
  • A producer company registration can even be a business that is involved in the marketing and promotion or even for the provision of educational services which are related to the primary produce and as such it can be constituted as a producer company.

  • Financing Business
  • Any business which is involved in the activities such as the marketing, production or development domain can also need them as a producer company registration.

  • Infrastructure business
  • Those businesses which are engaged in the provision of infrastructure to the producers, be it electricity , irrigation systems, water resources, utilization of land or even consultation can itself need as producer company registration.

Producer Company Registration Process

  • Five Working Days
  • At least 5 directors should apply for a DSC in order to file for the Producer Company Registration. All that is needed is the provision of a few scanned documents and our expert representatives will help submit the form online on your behalf.

  • Seven Working Days
  • We will be preparing for your SPICe i.e. INC 32 documents right after we have applied for the DSC. The preparation of these documents takes at least a week and this includes the company's name, as well as the MoA and the AoA. As soon as these documents are ready, it will be given to the RoC.

  • Ten – Fifteen Working Days
  • The documents are generally approved within ten to fifteen working days, depending on the work load of the RoC. As it is approved, the Certificate of incorporation would be mailed at your office address and through this, you are now eligible for applying for the PAN and TAN, which are mandatory for opening up a bank account in your business name.

Documents Required for Producer Company Registration

  • A copy of PAN card (Scanned) or passport in case of NRIs and foreign nationals
  • A copy of passport or Voter’s ID or driver’s license (scanned)
  • A copy of the latest bank statement or mobile/telephone bill or gas/electricity bill (scanned)
  • Passport sized photographs (scanned)
  • Specimen signature – for directors only

For the Registered office Producer Company Registration

  • A copy of the latest bank statement or mobile/telephone bill or gas/electricity bill (scanned)
  • A scanned copy in English of Notarized rental agreement
  • A NOC (no objection certificate) from the owner of the property
  • Scanned copy in English of the property deed or the sale deed (if the property is owned)

Note: Your registered office can be your residence too and it does not have to be a commercial place.

Advantages of Producer Company Registration

  • There is limited liability
  • In Producer Company Registration there is an inherent risk of not being able to repay your debts which is there for all businesses. In case of such an event, the individual producer, who is the sole proprietor, is solely liable to pay off the liabilities of the business. Since the company is an entity itself, this makes the other members of the company have unlimited liability.

  • Economies of scale
  • There are only around 15% of the total farmers in India whom more than 2 acres of land. As such, majority of the farmers are not able to take advantage of economies of scale. With a producer company registration however, most of the farmers are able to work jointly in a collective form through which they can have lower costs and through which they can reduce their costs and have get better facilities for availing credit. This also means they can have better power for negotiating with buyers and also means better planning.

  • Better Management
  • The work can now be divided between the directors in the producer company, rather than having just one single farmer to manage the whole business. There is a board of management which manages the entire company and they have tenure of about 5 years. Moreover, the producer company registration is a separate legal entity which implies that the death of even a single member of the board doesn't affect the running of the company.

FAQ on Producer Company Registration

This is not a requirement and the whole process is handled online as it is automated. You will receive the Certificate of Incorporation as well as the DIN numbers through e-mail which would be sent by the MCA that is the Ministry of Corporate Affairs.

It takes about thirty five to forty days for the whole process to complete. This depends on whether the paperwork is complete or not and also on the ROC's workload.

Each company should have two parts in their name, with the first part being a unique name while the second part provides the detail activity of the business. For example, "technology" or "healthcare solutions". The second part should be as informative and descriptive as it can be the name of the company should always end with Producer Company Limited.

The most important one is for the directors to have address and identity proof and also the right for them to be able to practice on the property they are operating on. The property owner should also submit a NoC which states that the company can use that location for their operations.

A DSC is issued by 6 certifying authorities such as Mudhra and n-code in India. It is an electronic signature which is used for the verification of the documents in the registration process of the company.

Since all of the companies are legal entities, they all have a continuous existence. The only way a company can close down can be either if it is unable to meet the compliance requirements on an annual basis or if the creditors force it to shut down.

The books of a producer company must be audited from the initial year that it is registered. If the turnover of such a company is greater than five crores, then in that case, they should have a full time company secretary who can manage their affairs.

Why Corp Biz

20 Working Days

Just tell us a little bit about your business and you'll have the incorporation certificate in 20 working days. It's that simple. In addition to yours, we'll be handling around 400 requests this month.

9.1 Customer Score

We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

160 Strong Team

Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.

Recent Post

Impact of GST on Tourism Industry

Impact of GST on Tourism Industry

Impact of GST on tourism Industry is hitting hard our Indian economy. GST introduction and...

Read More.
How following NBFC Compliances can save you from prison?

How following NBFC Compliances can save you from prison?

NBFC Compliances are one of the pillars of the successfulness of its business. It is...

Read More.
Read All Blog

Subscribe for our Newsletter

Call Us Now Request a Call from us