What is Producer Company Registration?
Producer Company registration is done under the Companies Act, 2013. The main objective of a producer company is to ensure the production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary produce of the Members or import of goods or services for their benefit. The produce or the products are produced or grown by farming and other agricultural activities are the major product of any producer company. Hence mostly all the producer companies in India deal with agriculture and its products which are obtained after harvesting and activities related to it. Producer companies help in bringing together all the small and marginalized farmers on a small-scale industry. The otherwise disorganized farmers can now be accumulated under the same umbrella under the Producer Companies which will benefit them.
CHARACTERISTICS OF PRODUCER COMPANY REGISTRATION
- A producer company is a separate legal entity and is legally established by a person established under the Companies Act. Therefore, a producer company has a wide legal capacity and can own such a report which is in its own name. The members who are also the Directors of a producer company do not have any liability whatsoever to the creditors of a producer company.
- The Board of Management of a producer company can be easily changed by filing simple forms with the Registrar of Companies through a basic procedure. The Board of Management of a producer company controls the activities of the producer company and it consists of the members and the directors of the producer company.
- A producer company has ‘perpetual succession‘, which means that a producer company registration enjoys a continued or uninterrupted existence until it is legally dissolved. A producer company continues to exist even if any one of the directors or the members dies untimely. A producer company, being a separate legal person, is unaffected by the death of any member or director as continues to exist irrespective of the changes in the membership of the producer company and no matter which members are elected as the directors of the board of management of the concerned producer company.
- A producer company can acquire and buy any property in its own name legally as according to the law, the producer company has been given the status of a separate legal entity. No member can make any claim upon the property of the producer company as it has the right to maintain its own property.
STEP FOR REGISTRATION OF A PRODUCER COMPANY
- The next most important step is to choose an appropriate name for the producer company you intend to register. For your Producer company registration online, you need to choose a name for your company and send this proposal to the Ministry of Corporate Office. The Ministry of Corporate Office then checks the proposed name of the producer company for availability after verifying from their existing data of one-person companies. If your proposed name is approved, you can go ahead to the next step in the procedure. But if your proposed name is rejected by the MCA department, then you will be notified to pick another name and repeat the process to check its availability. The Ministry also sometimes suggests an alternative name for the producer company.
- The next step is to draft the Memorandum of Association ( MOA ) and Article of Association ( AOA ) along with other important documents. The proposed director of the producer company has to provide these documents while registering for the set-up of his/her producer company. The Memorandum of Association and the Article of Association are important documents to be submitted before proceeding to the next steps.
- A minimal fee also needs to be deposited by the proposed director of the producer company after depositing the MOA, AOA, and the digital signature certificate. Once the fee is submitted successfully, all the deposited documents are verified by the Registrar of Companies. It takes around 15-30 days for the process to be completed.
DOCUMENTS REQUIRED FOR REGISTRATION OF PRODUCER COMPANY
ID proof :
The directors of a producer company are required to provide their PAN card as identity proof at the time of filing for the registration of a producer company. The primary Identity document is a PAN card. The registration for a producer company will not be complete unless all the proposed directors provide the government with their respective PAN cards.
Residence proof :
An electricity bill, phone bill, bank statement, and other such documents can act as proof of residence for a person. These particular documents or at least one of them are required to be submitted while registering for a producer company. All the directors of the company are asked to submit their proofs of residence.
Address proof :
A voter ID, Passport, Aadhar Card, or driver’s license all are considered mandatory documents in order to verify their address. This is an essential step for all the proposed directors of any producer company.
Passport size Photographs :
A passport-sized photograph of all the directors on a white background is also to be submitted as the officials need to verify them with all your other documents before approving the concerned producer company.
Passport is essential for those people involved in the producer company companies who are not Indian residentials. NRIs or people with foreign residential proofs need to have their passports verified while filing for the approval of a limited liability company.
Digital certificate :
The digital signature certificate needs to be opted for by any one of the directors applying for the producer company status. This will ensure that all the documents and required applications are easily signed online by using the digital signature. Digital signature certificate is also another important document that comes in handy while going through this long procedure.
Registered Official address :
An office location needs to be registered during the registration process of a producer company within 30 days of its successful incorporation. A no-objection certificate is also to be attached along with all the other documents which ensure that the landlord does not have any issues regarding the fact that the place is being used as a registered producer company’s office.
ADVANTAGES OF PRODUCER COMPANY REGISTRATION ONLINE
- Many types of loans are easily accessible to producer companies. The NABARD Loan is provided to the producer Companies in order to kick off their business and help them in making a place in the market. NABARD ( National Bank for Agricultural and rural development ) has taken up the responsibility of helping all the producer Companies to meet their needs. A producer organization development fund also called the PDF in order to help the producer Companies by providing timely loans in an easy manner. The producer organization development fund was set up at ₹ 50 crores by the National Bank of agricultural and rural development. This is one of the major advantages that a producer Company gains from a government scheme.
- A special provision is made by Act 61 of Producer Company which enables giving loans to the members of a Producer Company. All the members of a producer company are the primary producers. They are mostly in need of financial assistance and this Act to lend loans to them easily. Loans and advances, against security mentioned in articles to any Member, repayable within a period between 3 months and 7 years from the date of disbursement of such kind of loans.
- The members of the producer company are entitled initially to receive the value for the produce supplied which is determined by the directors. Then, this amount will be given out later in the form of cash or kind or sometimes equity shares. The members of the producer company get to have regular bonus shares in the same proportion to the shares held by these members of the producer companies.
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