Meaning of a Producer Company Registration
A Producer Company Registration is a legally recognized organization consisting mainly of farmers and agriculturalists. It was introduced by the government to improve the standard of living, income, and profitability of individuals engaged in primary production activities such as farming, harvesting, processing, and selling of agricultural products. A Producer Company operates as a private limited company while allowing benefits similar to a cooperative society.
Provisions for Producer Company Registration
There is no specific provision for Producer Companies under the Companies Act, 2013. However, their registration and regulation are governed by Chapter IXA of the Companies Act, 1956.
Requirements for Incorporation
- Minimum 10 producers (farmers/agriculturists).
- At least 5 directors.
- Minimum paid-up capital of ₹5,00,000.
- Registered as a private limited company but with no limit on the number of members.
- Liability of members is limited to the unpaid amount on their shares.
The company must operate for the benefit of its members and comply with the provisions laid out in Section 581B of the Companies Act, 1956.
Section 465 of the Companies Act, 2013
This section states that the Companies Act, 1956 and the Registration of Companies (Sikkim) Act, 1961 (referred to as repealed enactments) are no longer in force.
However, as per Clause 1 of Section 465(1), the provisions of Part IXA of the Companies Act, 1956 continue to apply to Producer Companies as if the Companies Act, 1956 has not been repealed. This remains in effect until a new law is enacted specifically for Producer Companies.
Activities Allowed for Producer Companies
Under the Companies Act, 2013, a Producer Company can engage in the following activities:
Primary Production & Trade
- Production, processing, harvesting, procurement, pooling, grading, handling, selling, marketing, and export of members’ primary produce.
- Import of goods or services beneficial to members.
Training, Research & Development
- Providing training, education, technical and consultancy services.
- Research and development activities that benefit members.
Infrastructure & Resource Management
- Production, transmission, and distribution of power.
- Conservation and sustainable use of natural resources such as water and land.
Financial & Welfare Services
Providing financial services, mutual assistance, insurance, and welfare measures for producers and their primary produce.
Requirements for the Incorporation of a Producer Company
1. Documents Required For Members and Directors
- PAN Card – Self-attested copy.
- Passport Size Photos – Two colored photos.
- Identity Proof (Any one of the following):
- Valid Passport
- Voter ID
- Aadhaar Card
- Valid Driving License
- Address Proof (Not older than 2 months) (Any one of the following):
- Bank Statement
- Electricity Bill
- Telephone Bill
- Mobile Bill
For Business Address
- Proof of Ownership/Rent/Lease
- NOC from the owner (if rented/leased)
- Property Papers (Title Deed)
- Utility Bill (Electricity, Mobile, or Telephone Bill) – Not older than 2 months
Additional Documents
- Khasra or Katuni of the subscribers along with their Jamabandi
- Producer Certificate for all subscribers, certified by:Tehsildar
- Agriculture Officer
- Patwari
- SDM (Sub-Divisional Magistrate)
2. Required Information
- Authorized and Paid-up Share Capital (Minimum ₹5,00,000)
- Number of Shares subscribed by members (Minimum 10 members)
- Place of Birth & Duration of Stay at present residential address
- Occupation of members and directors
- Proposed Object/Business of the company
- Educational Qualification of members and directors
- Email IDs & Contact Numbers of members and directors
Process of Producer Company Registration
The Ministry of Corporate Affairs (MCA) introduced amendments effective from 23rd February 2020, replacing the old INC-32 (SPICe) form with SPICe+ web services. The registration process involves the following steps:
1. Application for Name Reservation
- Apply for name reservation through SPICe+ (Part A) at [www.mca.gov.in](https://www.mca.gov.in) by paying the specified fees.
- Ensure the chosen name is available on MCA and does not conflict with any registered trademark under the relevant class.
- Reserve the company name separately in Part A or
- Apply for name reservation and incorporation together by filling out Part A and Part B simultaneously.
2. Filling Part B of SPICe+
Complete Part B of the SPICe+ form, which includes multiple sections that can be saved and modified before submission.
3. Convert SPICe+ Form into PDF
Convert the filled SPICe+ form into a PDF format to affix the Digital Signature Certificate (DSC)
4. Uploading the Form on the MCA Portal
After affixing the DSC, submit the form on the Ministry of Corporate Affairs portal as per the prescribed process.
5. Declaration of Directors and Subscribers
- The INC-9 declaration for subscribers and first directors will be automatically generated in PDF format and must be submitted electronically, except in the following cases:
- If the number of subscribers and/or directors exceeds 20.
- If any subscriber and/or director does not have a DIN or PAN.
Changes as per the Recent Amendments
1. No Need to Mention SRN:
There is no need to mention the SRN (Service Request Number) for names reserved in Part A of SPICe+. The SRN will automatically appear while filing Part B after the reservation is done.
2 .Mandatory Registration for ESIC and EPFO:
Registration for Employee State Insurance Corporation (ESIC) and Employees’ Provident Fund Organization (EPFO) has been made mandatory for all new companies incorporated from 23rd February 2020 onwards. Electronically Plus) web service, replacing the older INC-32 (SPICe) form and integrating multiple services for ease of incorporation.
3. Professional Registration for Maharashtra:
In Maharashtra, Professional Tax registration has become mandatory for all new companies incorporated in the state from 23rd February 2020.
4.Mandatory Application for Opening a Bank Account:
It is now mandatory for all newly incorporated companies to apply for opening a bank account. The application must be filed through the AGILE-PRO linked web form.
5. Declaration of Company’s Subscribers and First Directors in PDF Form & e-Submission:
The declaration for all subscribers and first directors of the company, which was previously filed in Form INC-9, will now be automatically generated in PDF format. This declaration must be submitted electronically in all cases, except in cases where:
- The number of subscribers and/or directors exceeds 20.
- Any of the subscribers and/or directors do not have a Director Identification Number (DIN) or Permanent Account Number (PAN).
6. Mandatory Use of e-MoA (INC-33) and e-AoA (INC-34) (In Some Cases):
It is mandatory to use e-MoA (INC-33) and e-AoA (INC-34) if the number of subscribers is up to 7 and in the following scenarios:
- Individual subscribers who are Indian nationals.
- Individual subscribers who are foreign nationals, provided they have a valid DIN and Digital Signature Certificate (DSC), and they submit proof of a valid business visa.
- Non-individual subscribers based in India.
7. Signed Physical Copies of the MoA / AoA (In Some Cases):
Physical copies of the Memorandum of Association (MoA) and Articles of Association (AoA) must be signed and attached in the following cases:
- If individual first subscribers are located outside India or if they do not have a valid business visa.
- Non-individual first subscribers based outside India.
- Indian nationals being subscribers, but not directors.
- Foreign nationals being subscribers, whether or not they are directors, and if they do not have a valid DIN.
- In cases where the number of subscribers exceeds 7, SPICe+ should be filed with MoA and AoA attached as separate documents.
8. Mandatory Filing of Statutory Return:
- Once the DSC is affixed, upload the SPICe+ form to the MCA portal along with the required attachments and supporting documents.
- Follow the existing process for submission, ensuring all forms and fees are correctly filed.