Producer Company Registration in Chennai

Producer Company Registration in Chennai - An Overview

Producers buy goods and services and transform them into a sellable product, which they sell to their customers for the purpose of making a profit. Examples of producers are farmers, manufacturers and construction companies.Producer goods refer to the types of products used by producers in their production processes. They include capital goods, semi-finished products and raw materials.

The producer company can be formed by any 10 or more individuals, each of them being individuals or institutions. Its name shall bear the words Producer Company Ltd and liability of the members shall be limited by the memorandum. Any ten or more individuals, each of them being a producer or any two or more Producer institutions, or a combination of ten or more individuals and Producer institutions, desirous of forming a Producer Company having its objects specified in section 581B

Producer Company Registration Online in Chennai, Tamil Nadu, India

Benefits of Producer Company Registration in Chennai

The members of the producer company will be entitled to get bonus shares in the same proportion to the shares held by them. The surplus may be given as a patronage bonus to the members of the producer company.

Separate legal entity
Tax Benefits
Simple Management
Loans and Investment
Continuous Existence
Good Governance
Support for Procedure company
Help the members
Better Facilities

Advantages

Easy Management

The Board of a producer company can be easily changed by filing simple forms with the Registrar of Companies. The Board controls the activities of the producer company.

Borrowing Capacity

Producer Company enjoy better avenues for borrowing of funds when compared to other forms of business such as sole proprietorship and partnership.

Business Continuity

A producer company has ‘perpetual succession’, that is uninterrupted existence until it is legally dissolved. A producer company is unaffected by the death or other departure of any member.

Separate Legal entity

A producer company is a legal entity and a juristic person established under the Act. Therefore, a producer company has wide legal capacity and can own property and also incur debts.

NABARD Loan

NABARD has taken up the cause of supporting and to meet the needs of Producer Companies.t set up a Rs. 50 crore Producer Organisation Development Fund (PODF) in 2011./p>

Limited Liability

Personal assets of the shareholders will not be at risk, in the event of the company facing financial distress. Liability of the shareholder is limited to the unpaid amount on his shareholding.

Pre-requisites for Incorporation of Producer Company

Number of Producers

10 or more Producers / 2 or more Producer Institutions can form a Producer Company But there is no upper limit on the number of members.

Minimum Required Capital

A minimum capital of Rs. 500,000 is required to incorporate a producer company.

Number of Directors

There should be minimum 5 directors (maximum of 15) in a producer company

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What is the process for
Producer Company Registration?

Obtain DSC and DIN

The first and foremost step in the procedure is to obtain DSC and DIN. Further, DSC is needed to sign the documents electronically or digitally, and the Certifying Authority issues the same. Also, DIN is required for all the proposed directors of the company. Furthermore, the same can be acquired by just filing the SPICE form as there is no need to file a separate Form.

Application for the Name Approval

For reserving the name of a Producer Company, the members of the said company are required to file a RUN (Reserve Unique Name) form with the ROC. After submitting the form, the ROC will then verify the availability of the name proposed by the members. Further, once the name of the company is approved, the certification of incorporation is required to be filed within twenty days.

Drafting of MOA and AOA

After obtaining the name approval, an application for incorporation is required to be filed in SPICE form together with all the necessary documents such as the MOA (Memorandum of Association), AOA (Article of Association), affidavit signed by all the members, and the declaration regarding the competence to act as legal subscribers of the company, with the respective ROC (Registrar of Companies).

Certificate of Incorporation

After verification of the documents and the application for incorporation submitted, a Certificate of Incorporation (COI) is issued by the ROC, and the same takes around seven days.

How to Register a Producer Company in Chennai

The following listed are the steps involved in the process for registration of a Producer Company:

Obtain DSC and DIN
The first and foremost step in the procedure is to obtain DSC and DIN. Further, DSC is needed to sign the documents electronically or digitally, and the Certifying Authority issues the same. Also, DIN is required for all the proposed directors of the company. Furthermore, the same can be acquired by just filing the SPICE form as there is no need to file a separate Form.

Application for the Name Approval
For reserving the name of a Producer Company, the members of the said company are required to file a RUN (Reserve Unique Name) form with the ROC. After submitting the form, the ROC will then verify the availability of the name proposed by the members. Further, once the name of the company is approved, the certification of incorporation is required to be filed within twenty days.

Drafting of MOA and AOA
After obtaining the name approval, an application for incorporation is required to be filed in SPICE form together with all the necessary documents such as the MOA (Memorandum of Association), AOA (Article of Association), affidavit signed by all the members, and the declaration regarding the competence to act as legal subscribers of the company, with the respective ROC (Registrar of Companies).

Certificate of Incorporation
After verification of the documents and the application for incorporation submitted, a Certificate of Incorporation (COI) is issued by the ROC, and the same takes around seven days.

FAQs

What are the requirements to be a director?

Any person above 18 years can become a director. Non-residents can also become director of Indian companies.

What are the documents required for registration?

ID proof and residence proof of all the proposed directors, PAN card is mandatory for Indian nationals. No objection certificate from the owner of registered office or lease agreement must be produced.

What is a digital signature certificate (DSC)?

Digital signature is process to authenticate and validate records electronically. DSC is required for every director of the company as the Ministry of Corporate Affairs (MCA) mandates digital signature of directors on some documents.

What is authorized capital fee?

Authorized capital of a Company is the amount of shares a company can issue to its shareholders. Companies have to pay authorized capital fee to the government so as to be able to issue shares. Companies have to pay authorized capital fee for a minimum of Rs.1 lakh.

What is the difference between a producer company and an Institutional Producer Company (IPC)?

The PC intervention takes care of all that needs to be done and should be done locally, using their members and the local communities to add value, provide services, increasing their incomes, etc. The IPC could be located at the district, state, national or even to serve a few countries in the area, requiring sizable investments, eg a plant to

How many directors can be appointed?

A private limited company must have a minimum of 2 directors while the maximum no. of directors can be upto 15.

What are the requirements with regard to the company's name?

Company’s proposed name should be unique i.e., it should not be identical to any existing name. Names that infringe others’ rights, trademarks or patents are likely to be rejected by ROC

What is Director Identification Number (DIN) ?

DIN is a unique identification number which is allotted to all the directors existing or proposed. DIN can be obtained by filing e-form DIN1 in MCA portal.

What are the statutory compliances required for a Producer Company?

Every Producer Company must hold a board meeting atleast once in every three months and an Annual general meeting (AGM) every year.