Producer Company

Who Should Register For A Who Should Register For A Nidhi Company?

It's ideal for those businesses looking to start a permanent and a mutual benefit fund, or a mutual benefit company Nidhi Company?

Step 1:

Name Reservation

We help you with your company's name reservation. We ensure the name should have the words 'PRODUCER Co.' at the end.

Step 2:

Drafting & Filing

We draft and file the documents required for your company registration (MoA, AoA, PAN & TAN).

Step 3:

RBI Approval

Principle approval from RBI

About Producer Company

Overview

A Producer Company was introduced in India with the Companies Act, 2013. It gives persons engaged in activities related to producing (what has been grown or produced, particularly by farming) the opportunity to form a company. A producer company can be formed by 10 or more producers (persons involved in, or in activities related to, produce or growth), two or more producer institutions or a combination of 10 or more producers and producer institutions. Such a company can only have equity capital, require a minimum of five directors and an authorised capital of Rs. 5 lakh. The procedure for forming a Producer company is similar to the one for forming a private limited company.

Producer Co's

TO BE SUBMITTED BY DIRECTORS & SHAREHOLDERS

  • Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
  • Scanned copy of Voter's ID/Passport/Driver's License
  • Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill Passport-size Photograph
  • Specimen signature (blank document with signature [directors only])

Note: Any one of the directors must self-attest the first three documents. In case of foreign nationals and NRIs, all the documents must be notarised (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).

FOR THE REGISTERED OFFICE

  • Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
  • Scanned copy of Notarised Rental Agreement in English
  • Scanned copy of No-objection Certificate from property owner
  • Scanned copy of Sale Deed/Property Deed in English (in case of owned property)

Note: Your registered office need not be a commercial space; it can be your residence, too.

Document Req

TO BE SUBMITTED BY DIRECTORS & SHAREHOLDERS

  • Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
  • Scanned copy of Voter's ID/Passport/Driver's License
  • Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill Passport-size Photograph
  • Specimen signature (blank document with signature [directors only])

Note: Any one of the directors must self-attest the first three documents. In case of foreign nationals and NRIs, all the documents must be notarised (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).

FOR THE REGISTERED OFFICE

  • Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
  • Scanned copy of Notarised Rental Agreement in English
  • Scanned copy of No-objection Certificate from property owner
  • Scanned copy of Sale Deed/Property Deed in English (in case of owned property)

Note: Your registered office need not be a commercial space; it can be your residence, too.

Advantages

Advantages of a Producer Company

Limited Liability

All businesses can run the risk of not being able to repay their liabilities. It is a necessary evil. In this event, a sole proprietor (or individual producer) would be personally liable for all the debts of the business. The members of a producer company, on the other hand, have unlimited liability as the company is an entity in itself. Therefore, only the amount invested in the business would be lost; the personal property of the directors would be safe.

Economies of Scale

Only 15% of India's farmers own over two acres of land. The majority of farmers are, therefore, unable to safely unlock the advantages that come with economies of scale. With a producer company, multiple farmers can work as a collective and lower costs, reduce risk and even get access to better credit facilities. This enables better planning and bargaining power with buyers.

Better Management

Rather than a single farmer managing the entire business, work within a producer company can be divided between its directors. The entity is managed by the Board of Management, which has a tenure of five years. Also, a Producer company has a separate legal existence, which means that it isn't affected by the death of any of its members.

Registration Process

Producer Company Registration Process

5 Business Days

A minimum of five directors must apply for a DSC, which is necessary to file the company registration documents. For this, you will only need to provide a few scanned documents and details; our representatives will fill the form and submit it online.

7 Business Days

As soon as we apply for the DSC, we will prepare the SPICe i.e. INC-32 documents. These documents will take around a week to prepare, and will include the name for your company, the Memorandum of Association (MoA) and Articles of Association (AoA). Once these documents are prepared satisfactorily, they will be submitted to the RoC.

10 TO 15 Business Days

Depending on the workload of the RoC, the documents will be approved in 10 to 15 days. Once approved, the Certificate of Incorporation will be mailed to your registered office address. With this document, you can apply for a Permanent Account Number (PAN) and Tax Account Number (TAN), both of which are necessary for opening a bank account in the name of the business.

FAQs

1. Do I need to be physically present during this process?

This isn't required. The entire process is now automated and handled online. You will receive the DIN numbers and Certificate of Incorporation by e-mail from Ministry of Corporate Affairs (MCA).

2. How much time is needed for setting up a producer company in India?

Expect it to take 35 to 40 days to complete the entire procedure. This will, however, depend on whether you have all your papers in order and the workload of the RoC.

3. What are the rules for picking a name for a producer company?

Every company has two parts to its name. The first part is unique. For example, 'WIPRO' or 'MERCEDES-BENZ'. The second part describes the business activity of the company. For example, 'Legal Solutions' or 'Technologies'. This second part must be as descriptive as possible. The name of the company must end with 'Producer Company Limited'.

4. What documents need to be submitted to start a producer company?

Most importantly, all directors must have an identity and address proof and rights to practice on the property they are operating on. The owner of the registered office will also need to submit an NoC, stating that the company may operate from that location.

What is a Digital Signature Certificate?

A Digital Signature Certificate, or DSC, is issued by six certifying authorities in India (such as e-Mudhra and n-Code). It is nothing but an electronic version of a physical signature. It can be used to verify documents in the company registration process.

5. Will my producer company have a continuous existence?

All companies are legal entities by themselves. Therefore, they have a continuous existence. The only way a producer company can cease to exist (other than shutting it down voluntarily) is if the annual compliances are not met or if the creditors/courts force its closure.

FAQs

1. How can I expand the operations of my Nidhi Company to different areas?

A minimum of three branches can be opened in a particular district. In case you want to expand outside the district or want to open more than three branches, the Registrar of Companies need to intimated 30 days prior to their opening.

2. Should I dissolve my Nidhi Company because it has not gained the necessary numbers of representatives in spite of completing one full year of tenure?

The conditions laid down by the Act says that a Nidhi Company should acquire a minimum of 200 members within its first year of incorporation. However, in case the company is not able to meet the required numbers, it can apply for an extension with the necessary government authorities.

3. In a Nidhi Company, are members allowed to credit or debit cash to the general fund?

No, members are only allowed to deposit, borrow, or lend funds.

4. What are the criteria to become a representative of a Nidhi Company?

Any person can deposit, lend or borrow money through the provisions provided by the Companies Act, 2013. Hence, they can all become members of a Nidhi Company. provided they are not a corporation or a company.

5. In a Nidhi Company, what should the limit for cash deposit be, for its representatives?

A Nidhi Company can accept deposits not exceeding 20 times of its net owned assets, as per the last audit

 
     
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