Register Producer Company in India

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Definition of Producer Company:

As the Indian economy relies heavily on agriculture, in 2002, the govt of India introduced a business concept called Producer Company to facilitate the formation of cooperative businesses as corporations. Small manufacturers are often assisted by producer companies to enter emerging high-value markets,  like  India’s export and retail markets. The Producer Company may be a  registered business entity under the Companies Act of 2013.

The primary objective of the Producer Company:

  • The production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary produce of the Members or the import of products or services for their benefit, with the proviso that the producer company may perform the aforementioned activities by itself or through any other institution.
  • Processing, including preserving, drying, distilling, brewing, vintaging, canning, and packaging, of its Members' agricultural products. Manufacture, sale, or supply of primarily machinery, equipment, and consumables to its Members.
  • Providing education on the principles of mutual assistance to its Members and other individuals.
  • Providing technical services, consulting services, training, research and development, and everyone other activities for the advancement of its Members' interests.
  • Generation, transmission, and distribution of energy, revitalization of land and water resources, their use, and conservation, also as communications pertaining to primary products.

Protection for producers or their primary products:

  • The Board may determine welfare measures or facilities for the advantage of Members.
  • Any other activity, ancillary or accompanying any of the aforementioned activities, or the other activity that promotes the principles of mutuality and mutual assistance among the Members in any other way.
  • Financing of acquisition, processing, marketing, or other activities laid out in above activities, including the supply of credit facilities or other financial services to its Members.

What is the meaning of Primary Produce?

  • Produce of farmers resulting from agriculture (including farming, horticulture, floriculture, pisciculture, viticulture, forestry, forest products, re-vegetation, beekeeping, and farming plantation products) or from the other primary activity or service that promotes the farmers' or consumers' interests. or
  • Products of handloom weavers, artisans, and other cottage industries.
  • Any product is resulting from any of the aforementioned activities, including any byproducts.
  • Any product is resulting from an activity that assists or promotes any of the aforementioned activities, also as anything ancillary thereto.
  • Any activity intended to extend production or improve the quality of the items listed above is included.

Who is that the Creator?

  • The term "producer" refers to anyone who engages in any activity associated with or associated with primary produce.

Who is eligible for Producer Company registration?

Under the businesses  Act of 2013, ten or more individuals, each of whom may be a  producer, two or more Producer Institutions, or ten or more individuals and Producer Institutions can form a Producer Company. The Central Registration Center (CRC), Manesar, Haryana regulates Producer Company Registration on behalf of every state’s Registrar of Companies, Ministry of Corporate Affairs, Government of India. The Producer Companies are governed by the businesses  Act of 2013. Producer Company Limited should be added to the top of the company’s name. Every producer company must have a minimum of 5  and a maximum of fifteen directors.

The Government of India announced on January 26, 2018, that there’s no incorporation fee for companies with an authorized share capital of up to Rs. 1,000,000/- (Rupees Ten Lakhs), which has since been increased to Rs. 15 lakhs. As usual, the remaining fees, including Name Availability,  stamp tax, Permanent Account Number (PAN), and tax write-off and Collection Account Number (TAN), apply.

Arrangements preparatory to the Incorporation of a Producer Company:

  • Determine a cluster during which the Producer Company can be established.
  • Conduct Baseline and Feasibility Studies to ensure the formation of a viable Producer Company in the cluster. Plan for possible business activities which will increase incomes.
  • Introduce the concept of the Producer Company to the first producers or farmers.
  • Explore with the first producers the need for a Producer Company. the first producers should recognize the benefits and recognize the necessity.
  • Create a gaggle of primary producers who are extremely enthusiastic about the concept of Producer Company, and educate them on the concept, details, and benefits of a producer company.
  • Allow the potential primary Producer Company members sufficient time to comprehend the concept. Visit them frequently and clarify all of their questions. the target should be to ensure that prospective members have the necessary knowledge and are willing to collaborate for their mutual benefit.
  • Identify the Promoter Directors and gather their KEY Documents before contacting Business Setup in India once the first producers are willing to form a Producer Company and are prepared to contribute to the share capital.

Minimum Requirements to register a Company:

 

DirectorsFive Directors
ShareholdersTen Shareholders
Authorized Share CapitalRs.10
Paid-up Share CapitalRs.10
  •  
  • There must be five directors and ten shareholders. Directors and shareholders could also be the same individual. They have to be majors. The director must be a natural person, whereas the shareholder could also be a corporation. one among the directors must be a Native American resident.
  • Authorised Share Capital is the amount up to which, you can invest in the company as share capital.
  • Paidup Share Capital is the amount up to which, you can deposit in the Company's Bank Account towards Share Capital.
Directors Documents
    1. Directors PAN
    2. Directors ID Proofs
      Aadhaar Card or Voter ID or Passport or Driver's License
    3. Directors Address Proofs:
      Latest one month Savings Bank statement or
      Latest Telephone Bill on his own name or
      Latest Moblie Bill on his name or
      Latest Power Bill on his own name.
    4. Directors latest passport size photograph
    5. Directors Email ids
    6. Directors Mobile Numbers linked with their Aadhar
    7. Incase of Foreign direcrtors, International Passport is mandatory
Company Documents
  1. Registered Office Address Proof: Latest Power Bill
  2. No-objection letter from the Landlord.
  3. Rental Agreement from the landlord if the premises are rented.
  4. Company email id.

Advantages of a Producer Company Registration:

Limited Liability:

The liability of the members of the Company is limited. The Directors or Shareholders are not personally liable for the debts of the Company. For example, when Company is in default of repayment of debt or loan, there is a protection to the personal assets of the Directors or Shareholders. They can recover the loan amount only by selling the assets of the Company.

Small Farmers Agribusiness Consortium (SFAC):

 SFAC manages a Credit Guarantee Fund to mitigate the credit risks of monetary institutions that lend without collateral to Farmers Producer Companies. This facilitates FPCs’ access to credit from mainstream financial institutions for place of business and operation.

SFAC provides FPCs with an identical equity grant of up to Rs. 10 lakh to extend their borrowing capacity, allowing them to access bank financing.

NABARD Support:

NABARD established a 50 billion rupee Producer Organisation Develop Fund (PODF) for the expansion of Indian producer companies. This fund will support the producer companies in the following ways: by providing credit support, enhancing marketing capacity, and constructing infrastructure facilities.

  • Lending to Farmer Producer Companies for contribution towards share capital on an identical basis (1:1) to allow Farmer Producer Companies access to higher credit from banks. this is often an unsecured loan that must be repaid by the Producer Companies within a specified time frame. This assistance is restricted to a maximum of Rs. 25 lakh per officer and Rs. 25,000 per member.
  • Credit assistance secured by collateral for business operations. Also, credit assistance for business operations to Farmer Producer Companies that qualify under the Credit Guarantee program of the tiny  Farmers Agribusiness Consortium without collateral security (SFAC). The credit product is often adapted to the needs of the business. As a rule, credit support is out there for business activities and the creation of assets,  like buildings, machinery, equipment, and specially designed vehicles for transportation,  also as working capital requirements, administrative expenses, and other recurring costs related to the project,  within the form of a composite loan. Not eligible for support are capital expenditures like the purchase of land or vehicles for general transportation or personal use.

NABARD also provides technical, managerial, and support for the Producer Companies’ efforts in hand-holding, capacity building, and market intervention. This assistance is out there in the form of grants, loans, or a mixture of the two,  counting on the circumstances, and is restricted to Producer Organisations that obtain credit from NABARD. Generally, capacity building support won’t be provided in isolation. it might essentially constitute a loan component of the overall project. The grant, if any,  won’t exceed 20% of the loan amount. Capacity building should encompass all activities related to the operation of a producer organization.

Government of India Support:

Small Farmers Agribusiness Consortium (SFAC) receives budgetary support from the govt of India for its Equity Grant and Credit Guarantee Fund Scheme for the Farmer Producer Company. Farmer Producer Companies are eligible for increased subsidies under the Integrated Scheme for Agricultural Marketing (Ministry of Agriculture, Government of India) for the creation of storage and other agricultural marketing infrastructure. The Ministry of Rural Development also operates programs through which Farmer Producer Companies can obtain funding surely activities. Training institutions supported by the Ministry of Rural Development of the govt of India also provide skill and capacity building training that can be utilized by the Producer Companies for their members.

Management Support:

Indian farmers are ready to produce the primary agricultural products, but they’re unable to market them. The farmer members of a producer company may appoint marketing experts as Directors and market their products at higher prices, thereby increasing their revenue. Therefore, each member will enjoy having experienced marketing support staff.

Income Tax benefits:

Section 10 of the tax  Act of 1961 specifically exempts agricultural income from taxation (1). However, the exemption for such agricultural income may vary supported the type of agricultural activity conducted. Despite the very fact that the IT Act does not provide Producer Companies with special tax benefits or exemptions, certain tax benefits could also be available depending on the type of agricultural activity the company engages in.

At the time of patronage bonus and limited return distribution,  the corporate is obligated to pay dividend tax at the applicable rates; however, members won’t be subject to tax on these distributions. Bonus shares won’t be subject to taxation in the hands of members at the time of allotment; however, the financial gain tax will apply at the time of sale or redemption.

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Get Certificate, DINs, DSCs, MOA, AOA, PAN, TAN, GST, MSME, IEC, PF, ESI, PT*, Bank A/c, Share Certificates & GST Software along with your CIN under 10 working days!

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How to Register a Producer Company

Below are the three steps involved in registering a corporation

Through eMudhra - One Hour Job
Digital Signature Certificates

We will apply for Class-III DSCs online via the eMudhra Portal. The OTPs are going to be generated on your Aadhaar-enabled mobile numbers,  we'll submit the same OTPs,  and therefore the system will then send you a link to the video recording via SMS and email. The DSC  are going to be approved by the eMudhra team following the submission of your video recording. Then,  we'll retrieve the DSCs from ePass Tokens and use them to sign incorporation documents.

Through MCA Portal - 5 to 7 Days
Incorporation

We will prepare the documents you provide in the order provided, i.e. PAN, ID Proof, and Address Proof, as one document. we'll also prepare the Form DIR-2, Form INC-8, Verification under Rule 25 of the businesses  Incorporation Rules 2014, draft the most objects of the company, and prepare the eSprice+ Form, eMOA, eAOA, and eAGILE+ Form and upload them to the MCA portal upon payment of the specified fee.

Through eMail - 1 Day
Certificate of Registration

After review, the MCA officers will approve the appliance and email you the Certificate of Incorporation. MCA  also will send you DIN approval letters via email. NSDL will send ePAN and eTAN to you via email. Additionally, your company's PF and ESI registration numbers are going to be automatically generated alongside your Zero Balance Company Current Account. we'll also email you the MOA, AOA, and other documents.

What All You Get
  • Certificate of Incorporation
  • Articles of Association
  • GST Registration
  • Import Export Code
  • Digital Signature Certificates
  • Company PAN
  • MSME Registration
  • Commencement of Business
  • Director Identification Numbers
  • Company TAN
  • PF Registration
  • Company Resolutions
  • Memorandum of Association
  • Company Bank Account
  • ESI Registration
  • Company Agreements

Why Business Setup in India?

Since our inception as an Official Company Registration Agent, we have maintained close ties with the Ministry of Corporate Affairs, Government of India. From day one, our intention has been to offer a streamlined incorporation procedure that is quick and easy to utilize. Today, our system for company registration is among the most efficient and effective in India. You can file an application for a new company name in slightly more than 5 minutes, and your firm will often be fully registered within 3-5 days. In addition to maintaining affordable pricing for company formation, we are constantly investigating new ways to bring value to our clients. We are proud to be one of the least expensive ways to establish a business in India.

We have the knowledge to advise clients on the appropriate company structure to implement. The majority of our clients want assistance registering a business limited by shares. The limited company structure is prevalent because it permits the distribution of profits to shareholders while safeguarding them through restricted liability. Our team has more than 2 decades of experience founding companies and providing corporate and secretarial services, which aids in the growth of tens of thousands of our clients’ enterprises each year.

We are tremendously passionate about the quality of our service, and we are incredibly proud of the reviews we get from our customers, as evidenced by our outstanding reviews and ratings. Continually, our team is chosen due to the value and skill for which it is renowned. We have helped form the industry by giving our customers innovative business services and packaged solutions that have grown alongside their demands.

Our clients have access to complimentary help from a team of experts. We are always prepared to assist. Throughout the registration of your Company, you will be enabled to contact us by phone or email if you require assistance.

No Hidden Charges

We believe in transparent and straightforward pricing. The price displayed is the price paid. There are no additional fees associated with business registration.

Rapid Service

You can file an application for a new company name in slightly more than 5 minutes, and your firm will often be fully registered within 3-5 days.

20 Years of Expertise

Our staff has over 2 decades of experience, making us specialists in our industry. Take the stress out of establishing your business, and rest easy knowing you have the assistance you need to thrive.

Reliable Service

Today, our customers expect exceptional service. Because of this, we are very pleased that 99 percent of our customers have rated us as "Great" or "Excellent" on Google.

Simplicity

The entire procedure, from ordering to utilizing your company registration license, is designed to be as simple and direct as possible to aid in the growth of your firm.

Privacy and Protection

ustomer confidentiality and safety come first. We safeguard your financial, business, and personal information to the utmost degree.

What Comes Next After Company Registration?

Congratulations on the registration of your new business! the bulk of entrepreneurs do not know what to do after registering their company. the opposite mandatory registrations and statutory compliance requirements of a company are listed below.

Company Conformity

First Auditor Appointed Within 30 Days

You must appoint a First Auditor of the Company within 30 days of the date of incorporation and file Form ADT-1 with the MCA within 15 days of the appointment, or a maximum fine of Rs. 3,900/- will be imposed.

Business Commencing Within 180 Days

You must file Form INC-20A with the MCA declaring the deposit of Share Capital amount within 180 days of Incorporation; otherwise, the MCA will strike off your company. A few banks also require you to submit this Form, failing which they will not activate your Company's Current Account.

Chairman KYC

On or before April 30

Every Director who has been issued a DIN by the end of the financial year and whose DIN status is "Approved" will be required to submit form DIR-3 KYC by the 30th of April of the following fiscal year. Failure to file incurs a fine of Rs. 5,000 per Director, and the MCA will deactivate his or her DIN.

Board Meetings

Every Company is required to have a meeting of its Board of Directors once every quarter.

General Annual Meeting (AGM)

Every Company is required to have an Annual General Meeting of its members on or before September 30th, within six months of the end of its fiscal year.

Annual Report Within 30 Days of Annual Meeting

Every Company has to file its Annual Report on Form AOC-4 with the MCA within 30 days of its AGM.

Annual Returns Within Sixty Days of the AGM

Every Company must file its Annual Return on Form MGT-7 within sixty days of its AGM.

Income Tax Return

Every Company has to file its annual Income Tax Return on Form ITR-6 by the 30th of September, or before.

TDS Return

Every Company required to file TDS returns must do so within 31 days at the end of each quarter to avoid incurring penalties.

PT Return

Every Company must submit its Monthly PT Return on or by the 15th day of the next month to avoid incurring penalties.

GST Returns

within 20 days of the quarter's end

Any company required to file GST returns using QRMS must do so by the deadline or face fines.

Form 1040 Return

Every Company is required to file its annual Income Tax Return on Form ITR-6 by the 30th of September or before.

Different Registrations

Registration for GST

If you are a taxable dealer in the sale of Goods or the provision of Services, you are required to register for GST.

Fertilizer License

If the Producer Company manufactures fertilizers, it must submit an application to the Controller of Fertilizers, Ministry of Chemicals, for a Fertilizer License.

FSSAI Registration

You must submit an application for a Food License to the Food Safety and Standards Authority of India if your firm specializes in Food, Catering, Hotels, or Restaurants.

IPR Registration

If you wish to protect your business name, brand, literary work, or invention, you must file an application for Trade Mark, Copyright, and Patent with the Indian department of Intellectual Properties.

Business Tax Registration

Companies registered in India must pay a professional tax. It is not obligatory in every jurisdiction; in fact, only 17 states require it.

Stores & Businesses Registration

Shops and establishments are required to register with the relevant state labor department.

AGMARK Authorization

The company must submit an application for AGMARK certification to the Office of the Directorate of Marketing and Inspection in order to obtain Quality Standard Certification for an agricultural product or produce (DMI). They can submit their application at www.dmi.gov.in.

Local Trade License

The new business must submit an application for a local business license to the local municipality or municipal corporation.

SPICEBOARD Accreditation

To export spices, a Farmer Producer Company must obtain SPICE BOARD Certification.

Form 1040 Return

Every Company is required to file its annual Income Tax Return on Form ITR-6 by the 30th of September or before.

PF Registration

If your Company is subject to the PF Act, you must obtain PF Registration. Now that MCA provides PF Registration along with Incorporation, you are no longer required to submit a separate application; nonetheless, you must enroll employees once the threshold limit is exceeded.

ESI Registration

If your Company is subject to the ESI Act, you must obtain ESI Registration. Now that the MCA provides ESI Registration along with Incorporation, you are no longer necessary to register separately; nonetheless, you must enroll employees once the threshold limit is exceeded.

Let's Deal With Your Confusions

DIN is the abbreviation for Director Identification Number. Following the incorporation of the Company, every director will be assigned a unique Director Identification Number. With this DIN, he or she can register an unlimited number of businesses.

A DIN holder is required to submit his KYC to the MCA annually by the 30th of September or face a penalty of Rs. 5,000/-.

DSC is an abbreviation for Digital Signature Certificate. Shareholders must possess a Class-III Digital Signature Certificate in order to register their organization.

There are various organizations that issue Class-III DSCs. These organizations are referred to as DSC Certifying Authorities. We have formed a partnership with eMudhra Tamil Nadu. eMudhra is one of India's most prominent Digital Signature Certifying Authorities.

Approved share capital is the maximum amount of capital that shareholders are permitted to invest in the Company. In actuality, this is the permitted investment limit for Equity Share Capital.

Paid-up share capital is the amount of money shareholders deposit into the Company's bank account towards share capital.

Now, a business can be registered with a minimum share capital of Rs. 2/-or investment of Rs. 1/- from each shareholder.

A CIN is an identification number assigned to a company by the Ministry of Corporate Affairs when they are issued the Certificate of Incorporation.

It might serve as the Company's identification number.

If we apply for direct incorporation without a Certificate of Name Availability, the process could take between three and five business days. Occasionally, it can be implemented in a single day.

However, it is recommended to apply for a company name before incorporation, which may take between 10 and 15 days.

Yes!

No, you cannot register a company on your own since Professionals such as a Company Secretary or a Chartered Accountant must digitally sign the application forms alongside a Director before your Company can be registered.

Including Digital Signature Certificates, the total government fee for a one million authorized share capital company would be approximately Rs. 4,000.

XYZ is authorized by the Ministry of Corporate Affairs to provide company registration services at an affordable price of Rs. 1,999/- throughout India.

INR 5 Lacs/-.

5

15

Any ten or more producers, or any two or more producer institutions, or any combination of ten or more producers and producer institutions are required to register a producer company.

Yes. (Products made by handloom weavers, handicraft.)

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