Producer Company
No more delays or difficulties!
Limited Liability of Members.
Raise money through Share market or Public.
Separate legal status in the eye of Law.
Producer company - An Overview
A producer company is basically a company registered to deal with the primary production of its active member related to farming. The main objective includes production to its selling and exporting also. For the purpose of incorporation of producer company, Part IXA of Companies Act, 1956 is applicable until any special Act is enacted for such companies.
A producer company is registered with ten or more member being producers; or any two or more producer institutions; or its combination. Alike any other company, the liability of its members is limited to the extent of unpaid share capital by its members. The producer company is deemed to be a private limited company under this Act, however, the threshold of the number of members does not apply to same.
Benefits of Producer company
Special User Rights
The active members of the producer company may enjoy special user rights, if provided in the AoA of the company. The company may issue appropriate instruments to active members in respect of such rights. The special use rights refer to any right relating to the supply of additional produce by the active Member or any other right relating to his produce.
Benefits to members
Every member can initially receive only the value of the produce as determined by the Board. The withheld price may be disbursed later in cash or by allotment of equity shares. The members are eligible only for limited return but can also be allotted bonus shares. The surplus can also be disbursed as patronage bonus.
Separate legal identity
Alike any other company, the producer company also has a separate legal identity. The assets, liabilities, rights, debts and privileges shall vest in the company. The company can deal in its own name and hold the properties, too. The change in members or the directors neither affects its existence nor the assets & liabilities or rights & obligations.
Limited Liability of owners
The members and the producer institutions have limited liability towards the debts and obligations of the company. Their personal assets remain unaffected in any case of loss or winding up. With assurance to limited liability, the producers can invest with lower risk into such businesses.
Documents Required for Producer company
- Photograph Latest Passport size photograph of Shareholders and Directors
- PAN Card PAN Card of shareholders and Directors.
- Identity Proof Voter ID/ Passport/ Driving License of Shareholders and Directors
- Rent Agreement Rent Agreement of the registered office should be provided, if any
- Business Address Proof Electricity Bill/ Telephone Bill of the registered office address in India
- NOC from owner No Objection Certificate to be obtained from the owner(s) of registered office
- Address Proof Telephone Bill /Electricity Bill/ Latest Bank Account Statement of Shareholders and Directors
Frequently Asked Questions
Yes, you need a minimum of five directors to register a Producer Company.
The entire procedure is 100% online and you don’t have to be present at our office or any other office for incorporation. A scanned copy of documents has to be sent via mail
There is absolutely no other payment. We will send you an invoice that is all-inclusive, with no hidden charges.
Legalraasta can incorporate a Nidhi Limited Company typically in 20-30 days. The time taken also depends on relevant documents provided by the applicant and speed of approvals from government. To ensure speedy registration, please pick a unique name for the proposed Company and make sure you have all the required documents ready ,prior to starting the registration process.
Yes, after acquiring DIN/DPIN an NRI or Foreign national can become a designated partner in Producer Company. However, at least one designated partner in the Producer Company must be a Resident of India
Producer Company
Producer Company
- Digital Signatures (Two Directors)
- DIN Of Directors
- Filing of Spice form
- Issue of Incorporation Certificate along with PAN and TAN
- Memorandum of Association
- Articles of Association
- Provisional PF ESI Registration
- Government fees included
- MSME Registration of your company
- Approval License from Central Govrnment