INCORPORATION OF PRODUCER COMPANIES

Producer Company means a body corporate (a co-operative society) having objects or activities specified in section 581B/ 465 and registered as Producer Company under the Companies Act, 1956/2013. There is no separate provision under the Act regarding Producer Companies. Thus, it can be said that a producer company is the combination of private limited company as well as a co-operative society. Under the Act, a Producer Companies can be formed by 10 or more individuals or 2 or more institutions or by a combination of both 10 individuals and 2 institutions having their business objective as one of the following:

1. Procurement
2. Harvesting
3. Production
4. Grading
5. Pooling
6. Handling
7. Marketing
8. Selling: or
9. Export

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

OBJECTIVES OF PRODUCER COMPANIES

The objects of the Producer Company shall relate to all or any of the following matters, namely:

• Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary production of the Members or import of goods or services for their benefit, provided that the Producer Company may carry on any of the activities specified in this clause either by itself or through other institutions.
• Processing including preserving, drying, distilling, brewing, vinting, canning and packaging of the produce of its members.
• Manufacture, sale or supply of machinery, equipment or consumables mainly to its members
• Providing education on the mutual assistance principles, to its members and others.
• Rendering technical services, consultancy services, training, research and development and all other activities for the promotion of the interest of its members.
• Generation, transmission, and distribution of power, revitalization of land and water resources, their use, conservation and communication relatable to primary produce.
• Insurance of producers or their primary produce.
• Promoting techniques of mutuality and mutual assistance.
• Welfare measure or facilities for the benefit of members as may be decided by the board.
• Any other activity, ancillary or incidental to any of the activities refereed to in clauses (a) to (i) or other activities which may promote the principles of mutuality and mutual assistance amongst the members in any other manner.
• Financing of procurement, processing, marketing or other activities specified in clauses (a) to (j) which include extending of credit facilities or any other financial services to its members.

PRE-REQUISITES FOR INCORPORATION OF PRODUCER COMPANY

• Any 10 or more individual producers can join together to form a producer company but there is no upper limit on the number of members.
• Or, any 2 or more producer institutions can form a producer company.
• Only persons engaged in an activity connected with, or related to, primary produce can participate in ownership.
• Minimum capital requirement to incorporate a producer Company is Rs. 5,00,000 or more.
• There should be a minimum of 5 directors and maximum 15 directors in a producer company.
• A producer company can never be converted into public company. However, it can be converted into multi- state co-operative society.
• A Producer Company must include the words “PRODUCER COMPANY LIMITED” in its name.

CHECKLIST FOR INCORPORATION OF A PRODUCER COMPANY

• Purposed Name (s) of Company (Maximum 2 Names can be proposed)
• Main objects of the company
• Address of the Reg. Office
• Names of Shareholders and Directors
• Total Authorized and Paid-Up Capital (Minimum Rs. 5,00,000 or more)
• Number of Shares to be taken by each member.
• Copy of PAN of each Shareholder/Director (Not Having DIN)
• Copy of Aadhar/DL/Voter Card/Passport of each Director/Shareholder (Not Having DIN)
• Latest Copy of Bank Statement/Electricity Bill/Telephone Bill/Mobile Bill of each Shareholder/Director (Not older than Two Months)
• Passport Size Photo of Each Director and/or subscriber.
• Mobile No. and Email Id of each Director
• Educational Qualification and Occupation of Each director and/or shareholder.
• Declaration from each director and/or subscriber to MOA.
• Affidavit from each subscriber to MOA.
• Producer certificate of all subscribers certified by Tehsildar/ Agriculture Officer/ Patwari/ SDM/ District Administrator and Khasra/ Khatauni should be attached (Proof of farming 7/12 extracts of Agricultural Land or certificate from District Tehsildar, this is additional requirement) (proof of farming differ from state to state)
• Copy of Rent Agreement/Title Proof/Lease Deed/Allotment Letter etc. of the Reg. Office
• Latest Copy of Utility Bill of the Reg. Office (Not older Than Two Months)
• NOC from Owner of the premise for Reg. Office
• Name of Bank in which Bank Account to be opened (currently out of PNB and ICICI Bank)
• Name of Director to be authorized as Bank Signatory and EPFO.
• Digital Signature of each Shareholders.

 Post Incorporation Documents:

Filing of Commencement of Business in Form INC-20A for which following documents are  required.

1. Copy of Bank Statement of the Company showing the entries of Depositing Subscription Amount by the all Subscribers of MOA.