Producer Company is a legal entity which includes agricultural produce, forest produce and where members are primary producers. Producer company registration comes under the Companies Act, 2013. It was enacted in 2003 under the Section IX-A of Indian Companies Ac, 1956. Producer Company can be created by 2 or more producer institutions, or 10 or more producers (those who are involved in farming activities).
It possess only equity capital and requires minimum 5 directors & an authorized capital of Rs. 5 Lakh only. The procedure for the Producer Company Registration is very much similar to that of a private limited company.What are the Documents Required for Producer Company Registration?
- KYC of directors & Shareholders of the Producer Company.
- Scanned copy of PAN card or passport,
- Voter ID’s scanned copy,
- Latest bank statement scanned copy,
- Passport sized photograph,
- Specimen signature (directors only).
Know the Basic Type of the Producer Company Registration?
- When a business is involved in the manufacture, procurement, or production of the primary produce for its members for further sale, comes under the category of Producer Company.
- If a business is simply involved in the promotion or marketing of primary produce or in the provision of educational services to its members or others comes under the category of Marketing Businesses Producer Company.
- Any business which offers technical assistance to the farmers, producers, training providers, or educational service providers or conducting research and development in terms of agriculture can register as a Technical Service Businesses Producer Company.
- Any company who is involved in the financial producer activities for the production, marketing, and development, of primary produce can register itself as Financial Businesses Producer Company.
- Those businesses who are involved in providing infrastructure to producers either in the form of water resources, electricity, irrigation techniques, land utilization or consultation regarding the same may register them as Infrastructure Service Businesses Producer Company.
What is the Share Capital & Voting Rights in Producer Company?
The share capital of the producer company contains equity shares only. The minimum required paid-up share capital is Rs 5 lakhs only. The equity of members is not allowed to be traded publically but can be transferred.
When the membership is of only individuals then the voting rights will be based upon the single vote for every member. And when the membership is only of the producers then the voting rights will be based upon their participation only.
The process of Producer Company registration is tedious and time-consuming. You may take assistance from Swarit Advisors to start your own Producer Company. Once you reach us through our phone number or email, our experts will surely assist you with step-by-step solutions and guidance. So, what are you waiting for, make a call to us, we will prove to be one stop solution to us.