The agriculture sector employs more
than 50% of India's total workforce and also contributes to about 1718% of the
country's GDP. The concept of "producer
company" was introduced in 2002 to address pressing issues of farmers and
agronomists – collectively referred to as "producers". This article
will tell you more about a Producer Company, registration process, formation
and benefits.
Definition of a Producer Company
A producer company agrees farmers'
cooperatives to role as corporate entities under the Ministry of Corporate Act.
The object of the producer
company is relates to all or any of the below matters:
- Material Production
- Harvesting crops
- Defense Procurement
- Grading method highest grade
- Pooling of separately small assets
- Handling it
- Marketing
- Selling
- Import/export
of primary products.
Members of the manufacturing company
may conduct this activity independently or through another organization:
- Processing
includes canning, drying, brewing, distillation, winemaking, canning and
product packaging.
- manufacture
or sell equipment or machinery.
- Provision
of information on the principle of cooperation to members and others
- Providing
technical services, consulting services, education, research and development,
and all other activities to advance member interests
- Generation,
transmission, and distribution of electricity, activation, use of land and
water resources, conservation, and communication related to primary products.
- Insurance
for manufacturers or key products
- Promotion
of methods of reciprocity and mutual support
- Social
measures or benefits for the benefit of members, as may be determined by the
board of directors,
- Extra
activities that may indorse the principle of mutual and mutual support among
memberships
- Financing
for purchases, processing, marketing, or other activities identified in
paragraph (aj), including the provision of lines of credit or other financial
services to members.
Each manufacturing company must
primarily process the products of its active members to perform the tasks
specified in this section.
Production company establishment and
registration.
A manufacturing company must be
created by:
- 10
or more (from each manufacturer) or
- 2
or more manufacturing facilities; or
- a
group of ten or more people and a manufacturing organization
Manufacturing companies are required
to perform the duties specified by law. The registrar will issue a certificate
of registration within 30 days of receiving the required documents.
5 Easy Steps to Start a Production Company
The process for registering a
manufacturer is almost the same as for a closed limited-liability company.
Step 1- Obtain a Digital Signature
Certificate (DSC) and Director Identification Number (DIN) from all directors
using copies of self-signed documents such as PAN, Aadhaar card, and contact
information.
Step 2- Raised the proposed organization name on FORM-1A to your state's RoC along with its fee. Once the name is existing,
the RoC is informed about the obtainability of the name.
Step 3- Draft the necessary documents like
the MoA to incorporate the companys objects and the amount of share capital to
be registered, and the AoA to contain the company's bylaws.
Step 4- Filing of other documents like the
statutory declaration on Form1 declaring compliance with all an affidavit signed by the clients of the proposed companies in connection with the formation of emergent matters. company; Directors' approval, a utility bill, and an NOC are all
required.
Step 5: A certificate will be issued, after
which the company will become a corporate body as if it were a PVT ltd company cannot become a public limited company under any circumstances.
Management of the Producer Company
The following are the essential
compliances that a producer company is required to adhere to:
- Every
producer company must have a minimum of five and a maximum of fifteen
directors.
- After the company is registered, the directors should be joined within 90 days.
- Similarly, directors can be selected or elected by the members of the annual general meeting (AGM)
- Every
designated director shall hold office for a minimum of one year and a maximum
of five years, as specified in the relevant articles.
- The AGM should be organized once a year and it should be informed according to notice and meeting. Notice should not be sent after 15 days of the date of AGM.
- In addition, the first AGM must be held within 90 days from the date of incorporation.
- The
proceedings of each AGM, as well as the directors' report, audited balance
sheet, P&L account, and annual returns, must be filed with the registrar
within 60 days of the AGM.
- If producer entities form a producer company, such entities shall be described by the general body through the chairman of the chief executive.
- Additionally,
proper books of accounts should be maintained regarding cash flow, expenditure,
sales and purchase of goods, assets and liabilities, cost of labor, and profit
and loss statements.
- Internal
auditing must be performed by a chartered accountant at specific intervals and
in the manner specified in the company's articles and in accordance with the
Institute of Chartered Accountants Act, 1949.
Benefits of Producer Registration
Manufacturing companies can benefit
from
- Each
member of the company receives a product or a combination of products, as
determined by the Director, for the value it provides. The amount is
distributed through cash or stock. This is subject to the conditions of the
Board of Directors.
- Participants
may receive bonus shares in proportion to the amount withheld.
- In
addition, the additional amount remaining after securing limited income and
reserves may be paid as a donation. This is proportional to business engagement
through cash or promotions.
- Members
of the manufacturing company may receive financial assistance in the form of a
line of credit for a period not exceeding six months.
- Loans
and advances secured as collateral as specified in the clause must be repaid
within 3 months and within 7 years.
If you need any help regarding Company registration Online feel free to contact us on Our Toll Free number 1800-3070-2070, Our Business advisor will explain you in details.
Tags-
Advantages of the producer company, Advantages of the producer company registration, Advantages of the producer company registration process
