Producer Company

“Producer Company” means a body corporate having objects or activities specified as follows:

(a) production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit;  (b) processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its Members ; (c) manufacture, sale or supply of machinery, equipment or consumables mainly to its Members ; (d) providing education on the mutual assistance principles to its Members and others ;  (e) rendering technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its Members ; (f) generation, transmission and distribution of power, revitalisation of land and water resources, their use, conservation and communications relatable to primary produce ; (g) insurance of producers or their primary produce ; (h) promoting techniques of mutuality and mutual assistance ; (i) welfare measures or facilities for the benefit of Members as may be decided by the Board ; (j) any other activity, ancillary or incidental to any of the activities referred to in clauses (a) to (i) or other activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner ; (k) financing of procurement, processing, marketing or other activities specified in clauses (a) to (j) which include extending of credit facilities or any other financial services to its Members.

1. Director:

• Minimum no. of directors required is 5 out of which 1 shall be Indian Resident.
• Any natural person can be a director of the company.
• Director Identification No. (DIN) and Digital Signature Certificate (DSC) are required to be a director of the company
• Directors are the managers and they are responsible for day to day functioning of the Producer Company.

2. Shareholder:

• Minimum no of shareholders required are 10 each of them being a producer or any two or more Producer institutions, or a combination of ten or more individuals and Producer institutions.
• Director and Shareholders can be the same.
• Shareholders are the owners of the company

3. Capital:

• There are 2 types of capital i.e. Authorize Capital (It is the capital up to which company is authorize to raise from the member and it can be increase as and when required.), Paid Up Capital (It is the capital which is paid up by the members of the company and it can be increase as and when required.)
• There is no such requirement for minimum capital, hence the company can be formed with the capital starting from INR 1.

4. Registered Office:

• Any place can be made as the registered office of the company even the residential place can be used as the registered office of the company.

5. Registering Authority:

• Ministry of Corporate Affairs.

6. Required Documents

> Proof of Registered office address (Conveyance/ Lease deed/Rent Agreement/Maintenance Bill)

> Copy of the utility bills of the registered office (Electricity Bill/Telephone Bill not older than two months)

    Directors / Shareholders

> PAN Mandatory- Indian National / Passport – Foreign National

> Proof of Identity – Voter Id/Passport/Driving License

> Proof of Address (Electricity Bill/Bank Statement/Telephone Bill/Mobile Bill not older than 2 months)

*All documents for Indian National – To be self-attested

*All documents of Foreign National – To be self-attested & apostilled

1. Obtain Digital Signature Certificate (DSC)
2. Prepare SPICe+ form (Part A – Name availability and reservation request)
3. Prepare SPICe+ Part B form (Company information i.e. directors, capital etc.)
4. Prepare e-form SPICe+ MOA (INC-33) ,SPICe+ AOA (INC-34) and SPICe+ AGILE-PRO (INC-35)
5. Download all the e-forms prepare online and affix DSC on all the e-forms.
6. Attached the require documents with form SPICe+ and upload the e-forms to MCA portal.
7. Verification of documents / forms by RoC
8. Issue of Certificate of Incorporation by RoC

Advantages

 1.GOODNESS OF COOPERATIVES
2.MEMBERS’ BENEFITS
3.TAX BENEFITS
4.LOANS AND INVESTMENTS
5.NABARD LOAN

Disadvantages

 1.COMPANIES STRUGGLE
2.IMPLICATIONS
3.DECISION MAKING