in just 20,500/-
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 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.
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 simply 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.
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.
Voter ID
Passport
Driving License
Rent Agreement
Utility Bill (Water or electricity)
No Objection Certificate from owner is required
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.
The procedure of Farmers Producer Company registration is somewhat related to the process of Private Limited Company Registration. To perform Producer Company registration, an application will be filed with the registrar of companies in the prescribed format with the required documents. On getting the application, the registrar will examine the documents and issues the Certificate of incorporation
The following steps are required to be taken for Producer Company registration in India :
Obtain DSC (Digital Signature Certificate) The first step is to get DSC for all the proposed directors in a company. DSC is needed to sign the documents electronically. It is offered by the certifying authority. All the forms are submitted must be self-attested.
Required details :
Email ID and Mobile number
PAN and Aadhaar
Application for Name Approval In order to register the Producer Company name, an application is to be filed with the recommended fee in RUN (Reserve Unique Name) Form with the registrar of companies. On application, ROC validates the availability of name. After the approval of the Producer Company name, an incorporation application is to be filed within the period of 20 days.
Documentation After digital signature and name approval, we will draft all the directors' and shareholders' declarations sheets for their acceptance, articles of association, memorandum of association and subscription sheet.
Incorporation Application After getting all the signed documents, an incorporation application is filed in SPICE e-Form with the required documents such as affidavit, MOA, AOA and declaration with the associated Registrar of Companies.
After verification of the incorporation form, Certificate of Incorporation is offered by the ROC and it takes approximately 7 days.
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/ any other kind to 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.
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.
Loan against Security – Producer Company is permitted to lend against gold, FD, property and Govt securities.
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.
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 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.
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 filed 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 and others.
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 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 contributed 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.
Reduced cash flow
Increased input prices
No economies of scale
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
Following types of Producer Companies in India:
Marketing business
Production business
Financing business
Technical service business
Infrastructure business
Following documents are necessary for registering producer companies :
Address proof of directors
Identity proof of directors
Passport size photograph
Digital signature
Office address proof
Following benefits are offered by a producer company :
Hassle-free management
Distinct legal unit
Limited liability
Enhanced credibility
Following disadvantages are involved with a Producer Company :
Low cash flow
High input prices
No economies of scale
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
If a producer company stops to be the primary producer, the shares shall be surrendered by board of directors when the criteria are satisfied.
Under the income tax Act, the tax is exempted based on the type of agricultural actions.
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.
Minimum 5 directors and 10 members must be there. Minimum paid-up capital of Rs. 5 Lakhs is needed to make the company. As there is no maximum limit of the members, company can possess as many as members they want.
