Producer Company Registration
- Free Incorporation Advisory by expert Chartered Accountant
- DIN and DSC for all 5 Directors
- Company Name Search and Name Approval
- MOA and AOA of the Company
- Government Registration Fees
- Corporate Identification Number
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Table of Content
- Producer Company Incorporation - An Overview
- Eligibility Criteria for Registering of Farmer Producer Company
- Benefits of Producer Company Registration
- Documents Required for Producer Company Registration
- Producer Company Registration Compliance due dates and penalties
Producer Company Incorporation - An Overview
Eligibility Criteria for Registering of Farmer Producer Company:
1. Minimum Members
2. Member Type
3. Purpose
Aimed at improving the economic well-being of farmers through activities like production, processing, and marketing of agricultural products.
4. Directors
5. Office
6. Incorporation
7. Capital
8. MOA & AOA
Benefits of Producer Company Registration
| Benefit | Description |
|---|---|
| Legal Recognition & Structure | Officially recognized under Companies Act, 2013, offering legitimacy and limited liability protection. |
| Enhanced Market Access | Better bargaining power and access to larger, national, and international markets. |
| Financial Support | Easier access to funding, grants, and subsidies, along with pooling resources for better scalability. |
| Government Benefits | Eligible for various government subsidies, grants, and tax exemptions designed for agricultural businesses. |
| Empowerment of Farmers | Improves income through collective bargaining and access to training and skill development. |
| Risk Mitigation | Allows for diversification of activities, reducing dependence on a single crop/product and providing insurance. |
| Stronger Negotiation Power | Bulk procurement of inputs at lower prices and joint marketing to improve pricing power. |
| Democratic Control | One member, one vote structure ensures equal say in decision-making, promoting transparency and fairness. |
| Social Impact | Contributes to rural development, provides employment, and fosters inclusive growth for small farmers. |
Documents Required for Producer Company Registration:
- Proof of Identity of Directors: Aadhaar or Passport.
- Proof of Address of Directors: Recent utility bill or bank statement.
- Proof of Identity of Members: Aadhaar or Passport.
- Proof of Address of Members: Recent utility bill or bank statement.
- Registered Office Address Proof: Rent agreement or property documents.
- Memorandum & Articles of Association (MOA & AOA): Outlining objectives and governance.
- Digital Signature Certificate (DSC): For directors to sign electronically.
- Director Identification Number (DIN): For each director.
- No Objection Certificate (NOC): If the office is rented.
- PAN Card of the Company: Required for tax purposes (can be applied later).
Producer Company Registration Compliance due dates and penalties:
| Compliance | Due Date | Penalty |
|---|---|---|
| Annual General Meeting (AGM) | Within 3 months from the end of the first financial year, and annually thereafter. | Penalty for failure to hold AGM: ₹1,00,000 and ₹5,000/day for continued failure. |
| Annual Return (Form MGT-7) | Within 60 days from the date of AGM. | Penalty: ₹100/day for each day of delay. |
| Financial Statements (Form AOC-4) | Within 30 days of the AGM. | Penalty: ₹100/day for each day of delay. |
| Special Resolutions (Form MGT-14) | Within 30 days of passing the resolution. | Penalty: ₹1,00,000 and ₹5,000/day for continued delay. |
| Tax Filing (Income Tax Return) | By September 30 (for individuals/companies) for the financial year. | Penalty: ₹5,000 for late filing, escalating with delay. |
| GST Filing | Monthly/quarterly, depending on turnover. | Penalty: ₹50/day (₹25 each for late GST return filing and late payment). |
| Director Identification Number (DIN) | Before registering with RoC. | Penalty for non-application: ₹5,000 and ₹500/day after default. |
FAQs on Producer Company Registration
• Limited liability: Members' liability is limited to their shareholding.
• Better market access: Collective bargaining improves access to better markets.
• Government support: Eligibility for government grants, subsidies, and schemes.
• Financial assistance: Easier access to loans and funding.
• Risk mitigation: Diversified activities reduce business risks.
The steps for registration are:
• Choose a unique company name.
• Apply for Digital Signature Certificate (DSC) and Director Identification Number (DIN) for directors.
• Prepare and file the Memorandum of Association (MOA) and Articles of Association (AOA).
• Submit the application with the Registrar of Companies (RoC).
• Obtain the Certificate of Incorporation once approved.
The key documents include:
• Proof of identity and address for members and directors.
• Registered office address proof.
• Memorandum of Association (MOA) and Articles of Association (AOA).
• Digital Signature Certificate (DSC) and Director Identification Number (DIN) for directors.
The main compliance requirements include:
• Holding Annual General Meetings (AGM).
• Filing Annual Returns and Financial Statements.
• Auditing of financial records.
• Maintaining statutory registers.
• Filing special resolutions with the RoC if required.
Penalties for non-compliance can range from fines to daily penalties for delayed filings. For example:
• Late AGM: ₹1,00,000 and ₹5,000/day for continued failure.
• Late Annual Return: ₹100/day for each day of delay.
• Income Tax: Penalties up to ₹5,000 for late filing.
These FAQs should provide a clearer understanding of the Producer Company registration process and related matters.
• Producer Company: A legal entity under the Companies Act, 2013 with elements of cooperatives and private companies.
• Cooperative Society: Governed by the Cooperative Societies Act and focused on the welfare of members, often in a more informal structure. A Producer Company can be seen as a more formalized, business-driven version of a cooperative.
If the Producer Company fails to comply with statutory requirements like filing annual returns, conducting AGMs, or submitting financial statements, it could face:
• Penalties.
• Fines for non-compliance.
• In extreme cases, dissolution by the Registrar of Companies.
