Checklist for Producer Company Registration

What is a Production Company?

As per the provisions of the Companies Act 2013, a producer company is a company registered under the Companies Act with the primary objective of engaging in agricultural production, post-harvesting processing activities, procurement, selling and distribution, import and export of goods.

A producer company consists of 10 or more members and 5 directors that work together to work on both agricultural and post-harvesting tasks. It is formed to benefit the members of the company by helping them trade/sell their produce to strengthen their financial position.

Objectives of a Production Company

• It includes production, harvesting, procurement, handling, bundling, import/export, sales, and marketing of agricultural produce for the benefit of the members.
• Processing includes storage, distillation, drying, and brewing.
• Manufacture sale of equipment, machinery, and consumables.
• Provide training to the members and other people about the principles of mutual assistance.
• Providing advisory services, training services, research and development, and other interests of members.
• Generation, transmission & distribution of energy, activation of land and water resources, and preservation of primary products.
• Promoting mutual cooperation

How to do Farmer Producer Company Registration?

Below are the steps you must follow to complete farmer producer company registration -

Step 1. Obtain Digital Signature and DIN for Directors and Shareholders
The first step in the process of producer company registration is obtaining digital signature certificates for all the directors or shareholders so that they are able to sign electronic documents. After obtaining the digital signature, you must obtain a DIN (Director’s identification number) to proceed further. If you apply for DIN with a SPICE form, you don’t need to file a separate form.

Step 2. Select a Company Name and Get Approval
After obtaining the DSC and DIN, the next step is to decide on a name for your company. Make sure the name chosen is not already in use. Once you have selected a company name, apply for its approval. To get the approval, you must apply in the prescribed format along with the Reserve Unique Name (RUN) charge. After submitting the application, the registrar will verify the name’s originality and approve it accordingly.

Step 3. Fill Registration form or Incorporation Application
Now, you can submit the incorporation application with the appropriate Registrar of Companies (ROCE) in the SPICE form.

Step 4. Drafting MOA and AOA
Once your company name is approved by the registrar, you can draft the Memorandum of Association (MOA) and Articles of Association (AOA). These documents consist of the company’s internal rules and regulations. These documents should also be attached to the incorporation form.

Step 5. Fill Agile Pro Form
After you have filed the SPICE form correctly, the next step is to file the Agile Pro form, including the GST details and the bank details.

What are the Necessary Documents for Producer Company Registration?

If you are planning to register a producer company, you need to make sure you have all these documents. Here’s a comprehensive list of all the documents required -

• All the shareholders and directors must have a passport, PAN card, and voter ID.
• The bank statements of the recent months.
• All the directors and shareholders must have their passports/driving licenses/ voter IDs.
• You should have passport-sized photographs of all the directors or shareholders.
• A copy of a utility bill, such as electricity, water, etc., to act as proof of residence.
• In the case of rented property, a scanned copy of the NOC or the rental agreement.
• In the case of owned property, you need a copy of property papers.

What to Keep in Mind Before Producer Company Registration?

Before you go ahead and start the process of producer company registration, you must keep these things in mind.

• The minimum requirement for producer company registration is 5 directors and 10 members.
• The minimum paid-up capital should be Rs.5 lakhs to complete the incorporation of a producer company.
• There can be unlimited number of members in the company as there is no specific prescribed limit of members.
• A producer firm cannot be deemed a public company in India.
• Production companies can only have equity share capital.
• The production company must hold at least 4 meetings every year, and they should be held at least once every three months.

Establishing a producer company can be a significant step in enhancing agricultural productivity and supporting local communities. This checklist equips you with the essential information to streamline the registration process and contribute to the growth of your agricultural endeavors. Follow the steps diligently, adhere to the requirements, and embark on a journey of sustainable agricultural development through your producer company.