Introduction for Producer Company:-
MCA has inserted Part IX A of companies act 1956, Paving a way for the incorporation of Producer companies. The Act has allowed primary producers to organise themselves to gain a maximum profit from the market oriented economy.Firstly the Producer company is a hybrid between a private limited company and a co-operative Society. It also indicates the importance of the agriculture and the farmers who are dependent directly or indirectly upon agricultural field.
The objectives of producer companies shall include one or more of the eleven items specified in the Act, the more important of these being:
(i) Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of members or import of goods or services for their benefit;
(ii) Processing including preserving, drying, distilling, brewing, venting, canning and packaging of produce of its members;
(iii) Rendering technical services, consultancy services, training, education, research and development and all other activities for the promotion of the interests of its Members
(iv) generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce;
(v) Manufacture, sale or supply of machinery, equipment or consumables mainly to its members.
(vi) promoting mutual assistance, welfare measures, financial services, insurance of producers or their primary produce;
Basic requirements for Incorporation:
For incorporating a Producer Company, minimum 5 Directors and 10 members are required.
The minimum paid up capital of the company should be 10,000 rupees.
The registered office address has to be situated in India.
Documents required for incorporation:
- Copy of PAN card of all the members and Directors – attested by a gazette officer.
- Identity Proof of all the members and Directors – attested by a gazette officer.
- Resident proof of all the members and
- Directors: – attested by a gazette officer.
- Four Photographs of each member and Director.
- Proof of address of registered office
The Producer Company may reimburse to its promoters all other direct costs
associated with the promotion and registration of the company including
registration, legal fees, printing of a memorandum and articles and the payment
thereof shall be subject to the approval at its first general meeting of the Members.
The Producer Company shall not, under any circumstance, whatsoever become or be deemed to become a public limited company under this Act
Procedure for Producer Company Registration
Step-1 Name Approval and Reservation (Form INC-1)
Step-2 Making DSCs and DINs for Directors
Step-3 Filing the Incorporation Form INC-7 with the relevant ROC
Step-4 Filing Forms like INC-22, DIR-12, etc.
Step-5 Submission of other necessary documents.