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Producer Company

Producer Company

  • Overview
  • Document Required / Details of the product
  • Process

Producer Company Registration

Producer Company is a special business Model. The term “Producer Company” indicates that only certain categories of persons who are known as “primary producers”, can become shareholders in the Producer Company. Primary Producer means those persons who are engaged in primary agriculture activities such as:
  • Animal Husbandry: breeding or caring of animals on the farm.
  • Horticulture: Producing, growing plants, fruits, or vegetables.
  • Floriculture: Growing Flowers.
  • Pisciculture: Fish farming.
  • Viticulture: Producing grapes.
  • Forestry: Preserving the forest.
  • Re-vegetation:  Rebuilding or replanting disturbed land.
  • Bee raising: keep bees to collect honey.
There are some other businesses like handloom, handicraft, etc. which can be activities of the producer company. Producer companies are preferred choice of business model amongst farmers because producer company areas of operations are not restricted to a particular state as in the case of Co-operative society. Moreover, it has lesser government intervention in running companies and can also access financial institutions for raising money for day to day expenses requirements.  There are some unique features of Producer Companies:
  • Producer companies are private limited companies.
  • Though it is private limited companies its members can be more than 50 members
  • Minimum 10 or more individuals, being producer, or any two or more producer companies, or a combination thereof, are required to form Producer Company.
  • Producer Company shall have at least 5 but not more than 15 directors.
  • Conversion is not possible into any other business structure such as Pvt. Limited company, Public Limited Company, LLP, etc.
  • Producer Company shall have the words “Producer Company Limited” at the end of its name. For example Vanilla India Producer Company Limited.
  • The minimum Paid-up capital must be Rs. 5 lakh.
  • Voting rights in the producer company are aligned with the principle of “one man-one vote”, regardless of shareholding in the producer Companies.
Why Producer Company:
  • Producer companies can take advantage of various central and state government schemes like “Rashtriya Krishi Vikas Yojana funds, National Food Security Mission” and so on.
  • Equity Grant Scheme: To raise the capital base, a grant of up to Rs. 10 lakh is provided to each Producer Company.
  • Credit Guarantee Fund (GCF): This will cover 85% of the loans given by banks to Producer Companies.

Frequently Asked Questions

The primary requirement to incorporate a public limited company is that it requires minimum 7 shareholders and 3 directors. The minimum Authorised Capital of the company is prescribed to ₹ 5 Lakhs instead of ₹ 1 Lakh in case of Private Company.

The suffix “Private Limited” will be replaced with “Limited.” For this change, the company has to seek permission from the shareholders and after that make the required changes in the MoA to get it amended.

Since the Public limited company deals with the public’s money, it requires taking measures which increase the statutory compliance on its part. The regulatory liabilities are not restricted to the income tax but with ROC/MCA, SEBI, RBI, etc. It is important to take extra measures as the stakes are pretty high than any other company.

Once the name approval letter is received from the ROC, the MoA and AoA are required to be drafted. The name clause and capital clause are altered along with the removal of restriction to Private Company as provided by definition.

The company can start its business operations as a Public Company on receipt of the fresh Certificate of Incorporation from RoC.

Taxcomate can help you convert your Private limited into a Public Limited Company within 20-25 working days. The time taken for conversion will depend on the submission of relevant documents by the client and speed of Government Approvals. To ensure speedy conversion, one should ensure that all the required documents are submitted.

No. As the company’s PAN details remain same, there is no need of new registration. However, application of modification must be made for name change in records. Taxcomate can help you apply for modification at an additional cost.

Required Documents for Producer Company Registration

  1. Copy of PAN Card of directors
  2. Passport size photograph of directors
  3. Copy of Aadhaar Card/ Voter identity card
  4. Copy of Rent agreement (If rented property)
  5. Electricity/ Water bill (Business Place)
  6. Copy of Property papers (If owned property)
  7. Landlord NOC (Format will be provided)

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Producer Company Registration

₹30,999.00

Producer Company in just 7 to 10 Days

Never let the businessman see down by giving your small business a shining name with Producer Company registration. It is extremely easy to start and run!

Why choose Company registration in INDIA ?

  • Shields from personal liability and protects from other risks and losses.

  • A registered company makes it genuine and increases the authenticity of your business.

  • Procures bank credits and good investment from reliable investors with ease.

  • Offers liability protection to protect your company’s assets

  • Greater capital contribution leading to greater stability of business

  • Increases the potential to grow big and expand the business