A Producer Company consists of a group of people who are involved in the production of primary produce or having one or more objectives related to the primary produce. Part IXA of Companies (Amendment) Act, 2002, deals with the Indian Producer Company. The main objective to introduce this concept was to frame a legislation permitting incorporation of cooperatives as companies and the conversion of existing. Indian Producer Company is a body corporate and have its activities/objectives specified under Section 581B.
Activities of a Producer Company
1. Production, procurement, harvesting, pooling, grading, marketing, handling, selling and export of the primary produce of members. Provided that the Producer Company shall continue these activities themselves or through other institution;
2. Processing including drying, preserving, brewing, venting, canning, distilling and packaging of the produce;
3. Manufacture, supply or sale of machinery, equipment or consumables to its members;
4. Imparting of knowledge on the mutual assistance principles to its members;
5. Delivering technical services, consultancy services, training and other activities for the promotion of interests of its members;
6. Insurance of producers and or the primary produce.
Procedure for Incorporation
Applicant: Any person (10 or more) being a producer, or two or more producer institutions, or a combination of the above, can incorporate an Indian Producer Company.
Filing of Name: File an application in FORM-1A along with a fee of Rs.1000. The application has to be made to the Registrar of Companies of the state where the producer company office is proposed to be located. A name that is available and one that best defines the purpose of your producer company is to be selected. When the ROC informs about the availability of the name, a MOA and AOA of the company is drafted in accordance with the rules of Sec. 581F and 581G respectively.
MOA and AOA: These documents have to be stamped by the appropriate authority in agreement with the rules of the Indian Stamp Act, 1899 either physically or electronically. These documents have to be signed by each producer. The date will be the date of stamping.
Object: The object clause in MOA must specify all the matters which are specified in Sec. 581B.
Appointment of the First directors– The AOA of the company mentions the first directors of the producer company who hold office till directors are appointed within a period of 90 days of the registration. The minimum number of directors is 5 and maximum 50.
Filing of Documents
1. AOA and MOA duly signed, dated and stamped.
2. Power of Attorney
3. Statutory declaration in the e-Form- 1(on Stamp paper) declaring compliance of all and incidental matters regarding the formation of companies.
4. Ppayment of stamp duty electronically through the MCA portal. In case it is not paid electronically, then original stamped physical copies of the uploaded e-Form-1, AOA, MOA along with a copy of the challan in the concerned office of ROC has to be submitted.
5. Filling of Form-18
6. Filling of Form-32
7. Registration Fees
Certificate of Incorporation
The registrar issues an incorporation certificate having a CIN consisting of 21 digits within 30 days of the receipt of the documents required for registration.
Copy of PAN Card of all the directors
Passport size photographs of the directors
Copy of the voter identity card/Aadhaar Card
Copy of the Rent agreement(If it is a rented property)
Water/Electricity bill (Business Place)
Copy of the Property papers (If owned property)