Producer Company Registration: Agriculture-based Business Model
What is a Producer Company?
A producer company registration or simply a Producer Company is a type of Business Model for which only certain categories of entities, known as primary producers, can become shareholders in the company. Here Primary producers are entities that engage in agriculture activities. Some of them are listed below.
- Animal Husbandry: Breeding or rearing of animals
- Horticulture: Growing plants, fruits, and vegetables
- Growing Flowers- floriculture
- Fish farming
- Viticulture: Producing grapes for wines
- Forestry: preserving endemic jungles
- Bee raising for honey collection
- Handlooms and handicrafts
What makes a Producer Company distinct from other Company models?
We have enlisted some of the features that are unique to the Producer Company in India in the following points:
- A Producer Company is a Limited company.
- A Producer company can have more than 50 members.
- A Producer Company can have a minimum of 5 and a maximum of 15 directors.
- A Producer company cannot convert into another business model.
- A Producer Company must have the words “Producer Company Limited” in its title.
- Every member in a producer company gets only one vote, regardless of the shareholding arrangement in the company.
Benefits of Producer Company Incorporation
There are various benefits of setting up a Producer company in India. Some of them are listed below:
- Producer companies can get funding from various central and state government schemes.
- Every producer company is granted upto Rs. 10 lakh to raise its capital base.
- Producer Companies can use CGF (Credit Guarantee Fund), which can cover 85% of the loans given by banks.
What makes a business eligible for the Producer Company Registration?
Any business entity which wants to register itself as a Producer company must first observe these pre-conditions before filing the application for incorporation of a Producer company:
- The producer company requires a minimum of 5 Directors to file its application.
- The producer company requires a minimum of 10 members or a minimum of two institutions for filing its application.
- The producer company requires a minimum capital of five lakh rupees for its registration.
- A producer company cannot be transformed into a PLC (a Public Limited Company).
How to register your business as a Producer Company?
Producer Company Registration Process
The following is the step-by-step procedure for agro-producer company registration in India:
Unique Name for the Company: Firstly, the applicant must choose a unique name for the proposed company.
Reserve the Unique Name: Secondly, the applicant must reserve the name using the MCA’s Reserve Your Name (RUN) application after deciding on the name.
Obtain the DSCs: Afterwards, register for and obtain the required Digital Signature Certificates (DSCs) for the directors of the proposed company.
Obtain the DINs: Also, register for and obtain the required Director Identification Numbers (DINs) for the directors of the proposed company.
Draft the MoA and AoA: At last, draft the proposed company’s Memorandum and Articles of Association (MoA & AoA).
Application filing: Finally, fill out and submit the online application for Producer company incorporation along with the furnished documents.
Application Assessment: Post submission, the MCA will assess the application. It will verify the authenticity of the made statements and documents and conduct checks and Assessments of the application by the Ministry of Corporate Affairs.
If you want to register as a Producer company and don’t know where to start, then you can avail services of Producer Company Incorporation consultants. Also, you can consult them regarding registration fees for Producer Company. Furthermore, you can refer to our page for more company models and their incorporation processes registrationwala.com.