Producer Company Registration | Benefits | In India
Overview: Producer Company Registration
Since agriculture is the backbone of the Indian economy, this sector employs more than 50% of India’s total labor force and accounts for nearly 17-18% of the country’s GDP. In 2002, Producer Company Registration in which the concept of “producer company” was introduced to solve the urgent problem of farmers and farmers collectively referred to as producers. This article will tell you more about the manufacturing company registration process, training, and benefits.
Definition of Producer Company
A producer company allows farmers’ cooperatives to function as legal entities dependent on the Corporate Law Department.
The purpose of the manufacturing company involves all or part of the following issues:
- Production,
- Harvest,
- Procurement,
- Qualification,
- Pooling,
- Handling,
- Marketing,
- Selling,
- Import/Export of primary products.,
Members of producer companies can carry out these activities independently or through other facilities:
- Processing, including preserving, drying, brewing, distillation, harvesting, canning, and product packaging
- Manufacturing or sales of equipment supply/machinery
- Providing education to mutual assistance between members and others.
- Provide technical services, consulting services, training, R&D, and all other activities to promote the interests of its members.
- The generation, transmission, and distribution of energy, the recovery of land and water resources, their use, protection, and communications related to primary products.
- Insurance of producers or their primary produce,
- Promoting techniques of mutuality and mutual assistance,
- Social measures or benefits that are beneficial to members are determined by the board of directors.
- Other activities may in any way contribute to the observance of the principle of mutual benefit among members.
- The financing of acquisitions, processing, marketing or other activities described in paragraph (aj) includes the provision of credit lines or other financial services to its members.
Formation and Producer Company Registration
A production enterprise should include:
- Ten or more people, each of which is a manufacturer;
- Two or more production bases; or
- An association of ten or more individuals and manufacturing organizations. Manufacturing companies must comply with the targets set by the law.
The registrar will issue the registration certificate within 30 days after receiving the required documents.
Steps: How to Form a Producer Company
The procedure for registering a manufacturing company is almost the same as for a limited company:
Step 1
Receive the digital signature certificate (DSC) and director identification number (DIN) of all directors, and provide self-verified copies of documents, such as PAN, Aadhaar card, and contact information,
Step 2
File the proposed enterprise call in FORM-1A with the RoC of the respective country(state) at the side of the prescribed fee. Notify the RoC Availability of the name.
Step 3
Necessary documents, If the MoA includes the company’s assets and the amount of registered capital, the AoA includes the company’s articles of incorporation.
Step 4
Submit other documents, such as the formal statement on Form B. 1 stating compliance with all relevant issues related to the establishment of the company; an oath signed by the subscribers of the proposed company The book requires approval from directors, utility bills, and NOC.
Step 5
After the certificate is issued, the company becomes a legal entity like a limited company. Under no circumstances can you become a joint-stock company.
Operating a Producer Company Registration
The basic requirements that a manufacturing company must meet are below. They abide by the following rules:
- Every manufacturing company must have at least 5 directors and a maximum of 15 directors.
- After the company is registered, the directors must join within 90 days.
- Likewise, the directors may be appoint or elected by the members in the annual general meeting (AGM)
- Each appointed director must follow the relevant provisions for a term of at least one year and a maximum of 5 years.
- The general meeting of shareholders held once a year, and you will receive a notice stating the meeting agenda, MoM (minutes of the meeting), audited balance sheet, and other information. The notice will be issue no later than 15 months between the date of the annual general meeting and the date of the next general meeting.
- In addition, the first general meeting of shareholders held within 90 days from the date of registration.
- The overall balance sheet, P&L accounts, and records are check at each general meeting of shareholders’ and directors’ reports. It submitted to the Registrar within 60 days after the general meeting of shareholders.
- If the manufacturing company forms the producer companies, these companies are represente by the executive director and president.
- In addition, proper books of account are maintaine for cash flows, expenses, sales and purchases of goods, assets and liabilities, labor costs, and income statements.
- Internal audits must be conducted by auditors in a certain frequency and manner under the methods prescribed by the company’s articles of association and per the Institute of Certified Public Accountants 1949.
Benefits of founding a manufacturing company
Manufacturing companies enjoy the following benefits:
- Each member of the company receives a sum of money, in which the value of one or more products allocate to them determined by the directors. Distribution in cash or through equity. This may depend on the conditions under which board.
- Members can obtain bonus shares proportional to the withholding amount.
- In addition, the provisional income regulations and the remaining amount after the regulations are form can be allocate as sponsorship bonuses and participation in business activities in the form of cash or shares.
- The members of the manufacturing company are also entitle to receive financial assistance not exceeding 6 months through the credit line.
- Loans and guaranteed loans, as stated in the terms, stipulate repayment within 3 months, up to 7 years.
If you are looking for your Producer Company Registration, you can reach out to Chartered Accountants listed on CA in Delhi‘s homepage.
