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OneClick Business Solutions

REGISTER A PRODUCER COMPANY

in just 20,500/- (inclusive of all taxes & fees)

Keynotes on Producer Company Registration

Lowest fees across India
It takes 20 to 25 days for Producer Company Registration
Minimum capital to start Rs. 5,00,000/-
Instant access to Producer Software & Compliances

PRODUCER COMPANY REGISTER

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Hassle-free Producer Company Registration at Affordable Price

Producer Company is formed by a number of primary producers who need financial assistance timely. NABARD offers financial assistance to satisfy the needs of the producer company. One Click Business Solutions Private Limited offers producer company registration services to farmers in order to register and establish their business.

We have a team of dedicated and passionate professionals who have desire to help farmers to commence their agricultural business. They know how to register Producer Company and start an agriculture business accurately and without any legal hassle. We can feel concerns of a farmer about the Cost of producer company registration so we accomplish the registration procedure at affordable price.

If you want to incorporate your producer company, it is important to find trustworthy and experienced producer company registration consultant. We have highly experienced professionals to complete producer company registration online procedure.

So it is your turn to start your producer company with us. Get registered with us and commence your producer business in quickest turn-around time. You can contact us to get more information about our affordable producer company registration fees.

How to register Producer Company / What is Producer Company?

Producer Company is known as the easiest and cost-effective way for starting loan business in India. It needs 10 individuals with convenient documents for starting the Producer Company. The minimum need of capital for Producer Company Registration is Rs 5 lakh.

One can make members under Producer Company easily with easy procedure and a few documents. Registration of Producer Company is the only type of company available for starting the loan company in India without approval of RBI.

Producer Company is a blend of Co-operative Society and Company. It includes the benefit of a cooperative enterprise and capability of a company and accommodates the unique features of cooperative business with a regulatory framework close to that company.

What are the provisions made by the Producer Company about loans and investments?

Producer Company is made by the number of individuals that include primary producers and also require timely financial support. So according to companies act for loan, a special provision was passed in order to approve the members of the producer company.

By using the following, financial support can be given to the members of the Producer Company:

Loans and Advances – Loans and advances should be issued to the members of the producer company. It includes a security for a time not exceeding 7 years from the date of disbursement of loan.

Credit Facility – The credit facility will be given to a member of the producer company for not more than 6 months.

NABARD (National Bank for Agriculture and Rural Development) Loan – Financial assistance is offered by the NABARD (National Bank for Agriculture & Rural Development) in order to meet the need of the Producer Company. In 2011, Producer Company Development Fund of 50 crore has been created by NABARD out of its surplus operating fund.

Documents needed for Registration of Producer Company

1) ID Proof – Anyone of the following:

Voter ID

Aadhaar Card

Passport

Driving License

2) PAN and Photo – PAN and Photo of each director and shareholder in India are needed.

3) Producer Proof – Khasra – Khatuni / Sarpanch letter / ITR with Agricultural Income / Any proof that can be an evidence for the person of being producer

Scanned copy of all documents is needed. Only non resident Indians or NRI and Foreign nationals require submitting hardcopy

4) For Registered Office

Rent Agreement

Utility Bill (Water or electricity)

No Objection Certificate from owner is required

Objects of Producer Company

The types of businesses can be done by producer company are procurement, production, grading, harvesting, marketing, pooling, trading of the primary producer with the help of the members. Moreover, it manages finance for these tasks that incorporates increasing credit facilities too. It is not permitted to deal with the public directly and can operate with its members.

Formation of Producer Company and its registration

Although the registration procedure of Producer Company is easy yet, a professional is needed to complete the same. In order to make business easier, the government changed entire process. However after certain modifications, the procedure becomes a bit difficult. One Click Business Solutions is specialized in company registration. Let us know the steps of Producer Company Registration:

Step 1 – Gather entire documents - The first step includes gathering all necessary documents as given above sending all the scanned copies to us at our email id oneclickbusinesssolutions@gmail.com. There is no need to send hardcopies.

Step 2 –Application for Name approval – Once application is done for name approval, the next step includes applying for company name. The company name needs to follow the Rule 8 of the Company incorporation rules. The name after getting approval is valid for 20 days only.

Step 3 – Application for Digital Signature – The next step incorporates applying for digital signature. Digital signature is important for all the directors or shareholders of the organization. DSC is a signature based on pen drive that is used for signing online on PC.

Step 4 – Make all Necessary Documents – Once approval of name took place, all the pending documents for company registration should be prepared. At this point, AOA, MOA, INC 9, INC 10, DIR 2 are to be arranged and also pooled for signature.

Step 5 – Filing for Incorporation – Once promoters' sign on all the documents are ready, the next thing to do is filing the company incorporation with SPICE FORM INC 32. At this stage, the govt fees are given up by the govt.

Step 6 – Action and getting Approval – Once filing for the company registration is done, the next step includes following up with the government. If all the docs are legitimate, then the registration certificate will be issued by the government and company registration will be completed.

Benefits to Members

At first, members of the Producer Company will get the amount for production pooled and supplied according to the decision of the directors. Besides, the amount should be distributed in the type of equity shares/ cash/ kind t the members.

After offering provision for paying limited reserves and return surplus may be given as patronage bonus to the members of the producer company.

Members of the producer company will obtain the bonus shares in the equal percentage of what they hold the equity shares in the company.

Note – Patronage bonus is the distribution of surplus income among the members of the producer company in the percentage of their individual patronage. Patronage is known as member contribution in business.

Key features of a Producer Company

Producer Company is a production company that makes collection of small producers who will be its members and the company will trade with them. Besides the company will offer financial help to them, obtain help from them and also support techniques of mutual assistance and mutuality. Let us discuss its key elements:

Complete exemption of Income Tax – Producer Company does not need to pay income tax.

Low Price – Cost of registration of a Producer Company is only Rs 20,500/-

Facility of Loan to Members – Credit and financial facility can be extended to the members by the Producer Company.

Facility of Loan to Members – Credit and financial facility can be extended to the members by the Producer Company.

Acceptance of Deposit – Producer Company can accept fixed or recurring deposits.

Members of Producer Company – Producer Company can operate with members only.

Time and Cost for Registration of Producer Company

Approximately 10 to 15 days are required for Producer Company Registration and its cost Rs__________________________ (including fees and taxes). Following is the total cost breakup of Producer Company Registration:

Items Qty Price
Dirctor Identification Number 3
Digital Signature Certificate 10
AOA, MOA and Incorporation Fee
Name Approval 1
Stamp Duty of the specific State
CA Certification
INC 22
Goods and Service Tax (GST)
Professional Fee
Company Registration Cost in India

Deposit and Loan under Producer Company

Producer Company becomes well-known among the entrepreneurs who want to do production business and also want to facilitate promotion of small producers by offering finance to them. The key reason behind this includes the merits of Producer Company for getting deposit from members and lending finance to members without any approval of RBI. Let us discuss about the deposit and loan under Producer Company:

Deposits under Producer Company 2 types of deposits can be accepted by Producer. They are fixed deposits (FD) and recurring deposits (RD).

Loan under Producer Company Credit facility is offered by Producer Company to any member in connection of with its business for a time not more than 6 months.
Loans and advances can be offered by a producer company against security stated in articles to any member. It is repayable between 3 months to 7 years.

Producer Company Compliances after Registration

Basically two pillars are there for the compliances of Producer Company in India. Following is a brief explanation of that:

Annual Report by Auditor – NDH – 3 is known as half yearly return filled to verify whether the operation of producer company satisfy the rules or not. The return must be filed between 30th September and 31st March every year.

Internal Audit under Producer Company – An internal audit of the producer company must be performed at regular intervals by an experienced CS, CA, Advocate or CMA along with AOA.

Other Compliances – There are other compliances that are proposed under different Act like Income Tax Act, Companies Act, Money Laundering and others.

Advantages of Producer Company Registration

Modifications in the Board of management of Producer Company can speedily and easily be made by filing a few easy forms with ROC.

A distinct legal body offering limited eternity and liability.

A registered Producer Company is entitled to sell, own or divide a property in its own name.

Producer companies contribute enhanced credibility as compared to offered by unregistered producer's association.

A Producer Company can get deposit in the type of Fixed Deposits and Recurring deposits and offer a maturity. It can give loans to its agriculturist members/ farmer and also impose reasonable interest thereon.

Disadvantages of a Producer Company

Reduced cash flow

Increased input prices

No economies of scale

Frequently Asked Questions

Ques: What is called a Producer Company?

Under Company Act 2013, a Producer Company is the company that is involved in each of the following activities as its goals:

Harvesting

Production

Grading

Procurement

Handling

Pooling

Selling

Marketing

Import of goods or services for the benefit of the members

Export of primary products of the members

Ques: What are the types of Producer Companies?

Following types of Producer Companies in India:

Marketing business

Production business

Financing business

Technical service business

Infrastructure business

Ques: Which documents are essential for producer company registration?

Following documents are necessary for registering producer companies:

Address proof of directors

Identity proof of directors

Passport size photograph

Digital signature

Office address proof

Ques: What advantages are involved with a Producer Company?

Following benefits are offered by a producer company:

Hassle-free management

Distinct legal unit

Limited liability

Enhanced credibility

Ques: What are the disadvantages of Producer Company?

Following disadvantages are involved with a Producer Company:

Low cash flow

High input prices

No economies of scale

Ques: What are the goals of Producer Company?

The producer company includes certain goals, they are:

Handling

Production

Grading

Procurement

Handling

Pooling

Selling

Marketing

Import of products or services for the benefit of the members

Export of primary products of the members

Ques: What if a member ceases to become the primary producer?

If a producer company stops to be the primary producer, the shares shall be surrendered by board of directors when the criteria are satisfied.

Ques: What are the benefits of Producer Company?

Under the income tax Act, the tax is exempted based on the type of agricultural actions.

Ques: What is minimum number of directors needed to make a producer company?

Minimum 5 and maximum 15 directors are required to make a producer company. It can have more than 15 directors under the special circumstance of inter-state cooperative society registered as a producer company.

Ques: How many members are needed to make a Producer Company?

To make a producer company following combinations are required:

Any two or more producer instructions

Any ten or more individuals each of whom being a producer

Combination 10 or more persons and Producer Companies

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