Send an Enquiry
Enquiry Form

2 + 6 =

Call us now
Call Us Now
9136664394
9136664395
7304244849
c shape
Companies Act Business Setup

How to incorporate a Producer Company?

September 19, 2019 by Team Instabizfilings

Blog Details

A producer company can be defined as a legally recognized body of farmers/ agriculturists with the aim to improve the standard of their living. Under Companies Act 1956, a Producer Company can be formed by individuals or institutions having their business objective as one of the following:

  • Procurement
  • Production
  • Harvesting
  • Grading
  • Pooling
  • Handling
  • Marketing
  • Selling, or
  • Export

of the primary produce of the Members or import of goods or services for their benefit.

The main objective of the producer company is to facilitate the formation of co-operative business as companies and to make it possible to convert existing co-operative business into companies.

2. Requirements

 

 

 

Members Required

Any Ten or more individuals who are producers

OR

Any Two or more Producer institutions

OR

A combination of Ten or more individuals and Producer institutions

 

Director

 

Minimum 5

Maximum 15

 

Share Capital

Minimum INR 5 Lakhs

Equity Shares only

Benefits to Member

Limited Liability

Limited to the amount of unpaid share capital if any.

Value for Produce

Received by members in the form of cash/ kind/equity shares.

Patronage Bonus

Distribution of the surplus income to the members of the producer company in proportion to their respective patronage.

 

3. Procedure for Incorporation of a Producer Company

   Steps

 

          Procedure

 

 

1.

 

 A Producer Company is required to be registered as a Private Limited Company.

 

2.

 Obtaining Digital Signature Certificate of the proposed Directors.

 

3.

Reserve name of the Company using RUN (Reserve Unique Name) Service

Name should end with PRODUCER LIMITED COMPANY.

Attachment:

Brief details of the objects of Company.

 

4.

Preparation of MOA and AOA of the Company.

 

5.

Declaration by Professional and Subscribers.

 

6.

Director’s consent to act in form DIR-2, DIR-8 and MBP-1.

 

7.

Preparation of E-form SPICE

Attachments:

Proof of Registered Office

Copy of Utility Bill

DIR-2 of all Directors

Declaration by Professional in INC-8

Declaration by Directors & Shareholders in INC-9

Scanned Copy of signed MOA and AOA

 

8.

Filing of SPICE Form using linked form option in MCA

 


what You Reading

Like What You're
Reading?

Get fresh monthly tips to start &
grow your Business.