India is an agriculture centered economy. A Producer Company could also be an organization registered with the purpose of agriculture production, post-farming process, procurance, trade and distribution, export of principal production of the members or import of products for his or her profit. A producer company can be typically outlined as a lawfully accepted body of agriculturists and farmers to strengthen the standard of their living, and guarantee their offered support, incomes and profit. Producer Company can be started by 2 institutions and 10 or more than 10 persons or a combination of these individuals as per Indian Law.
The main objective of a Producer Company should be as defined under Section 581B of the Indian Companies Act 1956. The key objective of a Producer Company includes agricultural undertakings and activities taken place after harvesting. Producer Company is mainly a group of farmers and growers join together for the betterment of their income and standard of living.
Undertakings of a Producer Company
The Initial step is to attain a Digital signature certificate for all the recommended directors which is necessary to electronically sign the documents in the future..
Application for Producer Company name registration should be filled in “Reserve Unique Name” for along with prescribed fee and submitted to the registrar of companies. If Name is available then the registrar of companies approves the Producer Company name. Once Name is approved then an application for incorporation should be filed within 20 days.
The next step after name approval is filing an incorporation application is filed in SPICE form to the Registrar of Companies together with the necessary documents e.g. MOA, AOA, affidavit, and declaration.
Registrar of Companies issue Certificate of Incorporation after a thorough verification of the incorporation form. This process takes approximately 7 days.
Management of Producer Company is easy and quick even the process of changing the Board of Management is very simple. This can be done immediately by filing a simple form with the concerned Registrar.
With a limited liability for its members, the Producer Company behaves like a separate legal entity.
A Producer Company can accept payments through fixed or recurring deposits. Producer Companies can also give out loans to the members and farmers at a rational rate of interest.
As compared to other unregistered organizations Producer Company offers more credibility to farmers oragriculturists.
A listed producer company can buy or sell property with its name for different purposes and benefits of its agriculturist members.
Any individual and organization can become a member of Producer Company including foreign national and NRI.
The entire process of incorporation of the Producer Company is online. So there is no need to physically present for incorporation. Only the necessary documents required to be provided.
Typically it takes 30 days. The process also depends upon the time taken by the applicant for document submission.
Yes, after getting the Director Identification number any Foreigner or NRI can become a nominated as partner in Producer Company. Though, minimum one elected partner must be a Resident of India in the Producer Company.
No extra payment or charges are required other than registration fees for the registration of Producer Company.
Any individual or organization, i.e. "Producer" or "Producer institution" can be a member of the Producer Company.