Producer Company – Semantic Taxgen Pvt Ltd
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Producer Company

Register Producer Company

Step 1

We help you with your company’s name reservation. We ensure the name should have the words ‘PRODUCER COMPANY’ at the end.

Step 2

We help you get 5 DSCs and 1 DIN.

Step 3

We draft and file the documents required for your company registration (MoA, AoA, PAN & TAN).

About Producer Company

A Producer Company was introduced in India with the Companies Act, 2013. It gives persons engaged in activities related to producing (what has been grown or produced, particularly by farming) the opportunity to form a company. A producer company can be formed by 10 or more producers (persons involved in, or in activities related to, produce or growth), two or more producer institutions or a combination of 10 or more producers and producer institutions. Such a company can only have equity capital, require a minimum of five directors and an authorised capital of Rs. 5 lakh. The procedure for forming a Producer company is similar to the one for forming a private limited company.

Types of Producer Companies

Production Businesses

The main functions of producer companies are production, procurement or manufacture of any primary produce for its members (for further sale) and to others.

Marketing Businesses

Even a business involved in the marketing or promotion of primary produce or provision of educational services to members and others can constitute itself as a producer company.

Technical Service Businesses

Any business offering technical assistance to producers, providing training and educational services or conducting research and development can register as a producer company.

Financing Businesses

Any business financing producer activities, be it in the production, marketing or development domain, can register itself as a producer company.

Infrastructure Businesses

Businesses involved in providing infrastructure to producers, whether in the form of electricity, water resources, irrigation techniques, land utilisation, or consultation with regard to the same, may constitute themselves as a producer company.

TO BE SUBMITTED BY DIRECTORS & SHAREHOLDERS

  • Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
  • Scanned copy of Voter’s ID/Passport/Driver’s License
  • Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
  • Passport-size Photograph
  • Specimen signature (blank document with signature [directors only])

Note: Any one of the directors must self-attest the first three documents. In case of foreign nationals and NRIs, all the documents must be notarised (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).

FOR THE REGISTERED OFFICE

  • Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
  • Scanned copy of Notarised Rental Agreement in English
  • Scanned copy of No-objection Certificate from property owner
  • Scanned copy of Sale Deed/Property Deed in English (in case of owned property)

Note: Your registered office need not be a commercial space; it can be your residence, too.

Advantages of a Producer Company

Limited Liability

All businesses can run the risk of not being able to repay their liabilities. It is a necessary evil. In this event, a sole proprietor (or individual producer) would be personally liable for all the debts of the business. The members of a producer company, on the other hand, have unlimited liability as the company is an entity in itself. Therefore, only the amount invested in the business would be lost; the personal property of the directors would be safe.

Economies Of Scale

Only 15% of India’s farmers own over two acres of land. The majority of farmers are, therefore, unable to safely unlock the advantages that come with economies of scale. With a producer company, multiple farmers can work as a collective and lower costs, reduce risk and even get access to better credit facilities. This enables better planning and bargaining power with buyers.

Better Management

Rather than a single farmer managing the entire business, work within a producer company can be divided between its directors. The entity is managed by the Board of Management, which has a tenure of five years. Also, a Producer company has a separate legal existence, which means that it isn’t affected by the death of any of its members.

Frequently Asked Questions

Do I need to be physically present during this process?

How much time is needed for setting up a producer company in India?

Expect it to take 35 to 40 days to complete the entire procedure. This will, however, depend on whether you have all your papers in order and the workload of the RoC.

What are the rules for picking a name for a producer company?

Every company has two parts to its name. The first part is unique. For example, ‘WIPRO’ or ‘MERCEDES-BENZ’. The second part describes the business activity of the company. For example, ‘Legal Solutions’ or ‘Technologies’. This second part must be as descriptive as possible. The name of the company must end with ‘Producer Company Limited’.

What documents need to be submitted to start a producer company?

Most importantly, all directors must have an identity and address proof and rights to practice on the property they are operating on. The owner of the registered office will also need to submit an NoC, stating that the company may operate from that location.

Phone Support

+91 9654831210

Email Support

info@semantictaxgen.in

Visit Us On

501,Rishabh corporate Tower
Kakardooma Community Centre,
New Delhi-110092

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