How to incorporate a Producer Company?

September 19, 2019 by Team Instabizfilings

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
Director	Maximum 15
Share Capital	Minimum INR 5 Lakhs
Share Capital	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