What Is Producer Company Registration?

A producer company is a type of corporate entity formed by a group of producers (farmers, artisans, or any other group engaged in primary production activities) to collectively undertake the production, procurement, and marketing of their products. Producer company registration is the legal process of establishing a producer company as per the regulations outlined in the Companies Act of 2013. 

Advantages of Producer Company Registration

  • Protected Assets: Members enjoy limited liability, safeguarding personal finances.
  • Financial Accessibility: Easier access to institutional credit for growth and investment.
  • Market Expansion: Joint marketing boosts sales and competitiveness.
  • Group Bargaining: Collective strength leads to better deals on resources and services.
  • Quality Enhancement: Collective investment improves product quality and market value.
  • Fair Profit Sharing: Equitable distribution of profits fosters ownership and commitment.
  • Structured Governance: Legal recognition ensures transparency and efficient decision-making.
  • Tax Advantages: Eligibility for tax incentives reduces the financial burden on members.
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Checklist for Producer Business Registration

Businesses interested in registering as Producer Company must first meet the requirements outlined in Section 465 (1) of the Companies Act of 2013. A comprehensive detailed list of all these legally required requirements is included in the table below.

  • Choose a unique and compliant name adhering to regulatory guidelines.
  • Verify members' status as bona fide producers to maintain integrity.
  • Obtain a Certificate of Incorporation upon successful verification, officially establishing the business.
  • Draft comprehensive MOA and AOA outlining business objectives and governance structure.
  • Submit registration application with necessary documents and fees.
  • Fulfill taxation obligations by obtaining PAN and TAN for compliance with income tax regulations.
  • Ensure a minimum of ten individuals or two institutions as members.
  • Undergo scrutiny by regulatory authorities to confirm compliance.

Procedure for Incorporation of Producer Company

  • Choose a unique and compliant name for the producer company.
  • Prepare the MOA and AOA outlining the objectives, rules, and regulations of the producer company.
  • Ensure a minimum of ten individuals or two producer institutions as members.
  • Verify the availability of the chosen name with the Registrar of Companies (ROC).
  • Ensure compliance with the provisions of the Companies Act, 2013.
  • Verify the eligibility of members as per regulatory guidelines.
  • Declaration by subscribers and directors in Form INC-8
  • Consent to act as directors in Form DIR-2
  • Prepare and submit the application for incorporation in Form INC-7.
  • Other necessary documents include identity proof, address proof, and PAN card details of subscribers and directors.
  • Pay the prescribed incorporation fee.
  • The ROC verifies the application and documents submitted for compliance with legal requirements.
  • If everything is found to be in order, the ROC issues a Certificate of Incorporation.
  • After incorporation, apply for Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) from the Income Tax Department.
  • Once all formalities are completed and the Certificate of Incorporation is obtained, the producer company can commence its business operations.
  • Maintain proper records, conduct regular meetings, and comply with statutory filings to ensure ongoing compliance with legal obligations.
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