Producer Company Registration in Chennai
A Producer Company is a body corporate having an object that is one or all of the following: production, harvesting, procurement, grading, pooling, handling, marketing, selling, the export of primary produce of the Members or import of goods or services
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Producer Company Registration in Chennai – An Overview
Producers buy goods and services and transform them into a sellable product, which they sell to their customers for the purpose of making a profit. Examples of producers are farmers, manufacturers, and construction companies. Producer goods refer to the types of products used by producers in their production processes. They include capital goods, semi-finished products, and raw materials.
Any 10 or more individuals can form a producer company, with each member being either an individual or an institution. Its name shall bear the words Producer Company Ltd, and the memorandum shall limit the liability of the members. Any ten or more individuals, each of them being a producer or any two or more Producer institutions, or a combination of ten or more individuals and Producer institutions, desirous of forming a Producer Company having its objects specified in section 581B
Benefits of Producer Company Registration in Chennai
The members of the producer company will be entitled to get bonus shares in the same proportion as the shares held by them. The surplus may be given as a patronage bonus to the members of the producer company.
- Separate legal entity
- Tax Benefits
- Simple Management
- Loans and Investments
- Continuous Existence
- Good Governance
- Support for the Procedure company
- Help the members
- Better Facilities
Advantages of Producer Company Registration
Easy Management
The Board of a producer company can be easily changed by filing simple forms with the Registrar of Companies. The Board controls the activities of the producer company.
Borrowing Capacity
Producer companies enjoy better avenues for borrowing of funds when compared to other forms of business, such as sole proprietorship and partnership.
Business Continuity
A producer company has ‘perpetual succession’, that is, uninterrupted existence until it is legally dissolved. A producer company is unaffected by the death or other departure of any member.
Separate Legal entity
A producer company is a legal entity and a juristic person established under the Act. Therefore, a producer company has a wide legal capacity and can own property and also incur debts.
NABARD Loan
NABARD has taken up the cause of supporting and to meet the needs of Producer Companies.t set up a Rs. 50 crore Producer Organisation Development Fund (PODF) in 2011.
Limited Liability
Personal assets of the shareholders will not be at risk in the event of the company facing financial distress. The liability of the shareholder is limited to the unpaid amount on their shareholding.
Pre-requisites for Incorporation of Producer Company
Number of Producers: 10 or more Producers / 2 or more Producer Institutions can form a Producer Company But there is no upper limit on the number of members.
Minimum Required Capital: A minimum capital of Rs. 500,000 is required to incorporate a producer company.
Number of Directors: There should be a minimum 5 directors (maximum of 15) in a producer company
Documents required for Producer Company Registration in Chennai
- PAN Card, Passport, or Election ID Card
- Latest Bank Statement/Telephone or Mobile Bill
- Voter’s ID/Passport/Driver’s License
- A passport-sized photograph of all directors and shareholders
What is the process for Producer Company Registration?
Obtain DSC and DIN
The first and foremost step in the procedure is to obtain DSC and DIN. Furthermore, DSC is required to sign documents electronically or digitally, and the Certifying Authority issues it. Also, DIN is required for all the proposed directors of the company. Furthermore, the same can be acquired by just filing the SPICE form, as there is no need to file a separate Form.
Application for the Name Approval
For reserving the name of a Producer Company, the members of the said company are required to file a RUN (Reserve Unique Name) form with the ROC. After submitting the form, the ROC will then verify the availability of the name proposed by the members. Furthermore, once the company’s name is approved, the certification of incorporation must be filed within twenty days.
Drafting of MOA and AOA
After obtaining the name approval, an application for incorporation is required to be filed in SPICE form together with all the necessary documents such as the MOA (Memorandum of Association), AOA (Article of Association), affidavit signed by all the members, and the declaration regarding the competence to act as legal subscribers of the company, with the respective ROC (Registrar of Companies).
Certificate of Incorporation
After verification of the documents and the application for incorporation is submitted, a Certificate of Incorporation (COI) is issued by the ROC, and the same takes around seven days.
How to Register a Producer Company in Chennai
The following are the steps involved in the process for registration of a Producer Company:
Obtain DSC and DIN
The first and foremost step in the procedure is to obtain DSC and DIN. Furthermore, DSC is required to sign documents electronically or digitally, and the Certifying Authority issues it. Also, DIN is required for all the proposed directors of the company. Furthermore, the same can be acquired by just filing the SPICE form, as there is no need to file a separate Form.
Application for the Name Approval
For reserving the name of a Producer Company, the members of the said company are required to file a RUN (Reserve Unique Name) form with the ROC. After submitting the form, the ROC will verify the availability of the proposed name. Furthermore, once the company’s name is approved, the certification of incorporation must be filed within twenty days.
Drafting of MOA and AOA
After obtaining the name approval, an application for incorporation is required to be filed in SPICE form together with all the necessary documents such as the MOA (Memorandum of Association), AOA (Article of Association), affidavit signed by all the members, and the declaration regarding the competence to act as legal subscribers of the company, with the respective ROC (Registrar of Companies).
Certificate of Incorporation
After verification of the documents and the application for incorporation is submitted, a Certificate of Incorporation (COI) is issued by the ROC, which typically takes around seven days.
FAQ's
What are the requirements to be a director?
Any person above 18 years can become a director. Non-residents can also become director of Indian companies.
What are the documents required for registration?
ID proof and residence proof of all the proposed directors, PAN card is mandatory for Indian nationals. No objection certificate from the owner of registered office or lease agreement must be produced.
What is a digital signature certificate (DSC)?
Digital signature is process to authenticate and validate records electronically. DSC is required for every director of the company as the Ministry of Corporate Affairs (MCA) mandates digital signature of directors on some documents.
What is authorized capital fee?
Authorized capital of a Company is the amount of shares a company can issue to its shareholders. Companies have to pay authorized capital fee to the government so as to be able to issue shares. Companies have to pay authorized capital fee for a minimum of Rs.1 lakh.
What is the difference between a producer company and an Institutional Producer Company (IPC)?
The PC intervention takes care of all that needs to be done and should be done locally, using their members and the local communities to add value, provide services, increasing their incomes, etc. The IPC could be located at the district, state, national or even to serve a few countries in the area, requiring sizable investments.
How many directors can be appointed?
A private limited company must have a minimum of 2 directors while the maximum no. of directors can be upto 15.
What are the requirements with regard to the company's name?
Company’s proposed name should be unique i.e., it should not be identical to any existing name. Names that infringe others’ rights, trademarks or patents are likely to be rejected by ROC
What is Director Identification Number (DIN) ?
DIN is a unique identification number which is allotted to all the directors existing or proposed. DIN can be obtained by filing e-form DIN1 in MCA portal.