To incorporate a producer company in the company act, 1956; there is no maximum limit on the number of members; it may be founded by any combination of individuals, institutions, or both.
To benefit its members, the establishment of a producer company should have as one of its primary goals the acquisition of goods and services and the production, harvesting, grading, pooling, handling, marketing, selling, or exporting of the product.
To help co-operatives become corporations, the production company acts as a facilitator. The idea for a farmer producer organisation company was born to help farmers in India who are in financial distress.
The Procedure to Get Registration as a Producer Company
This is the method to register a producer company:-
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Applicant
There is no upper restriction on the number of producers (Individuals) who may come together to create a production business.
Any two or more producing institutions may form a producer company. To start your production firm, you’ll need at least $500,000. Ideally, a production firm should have five directors (up to 15). It cannot be transformed into a multi-state cooperative society.
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Receipt of Electronic Signing
DSC is required for both the Subscriber requesting the name’s availability and the prospective Directors. Class-II DSC is needed for e-Filings under MCA21, according to the Ministry of Corporate Affairs. Any DSC Vender, such as E Mudra, may be used by the Subscriber.
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Acquire the DIN Standard
To become a director, a person must first get a DIN, which is mandated by Section 153. DIN e-form DIR-3 must be submitted and certified by a working professional to be obtained.
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Formal Submission of a Name Request
To accurately portray its role as a Producer Company, the suffix Producer Company Limited must be used. The lack of the term “private” in the name does not imply that the firm is open to the public.
Name the proposed producer firm with “Producer Limited Business” as the final word of its name, indicating the company’s primary goals as clearly as possible. There must be an application lodged for incorporation with a state’s Registrar of Companies, based on the location of the production company’s registered office.
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Creating By-Laws and By-Laws of Corporations
MOA and AOA drafting are parts of the process leading up to the Registrar’s decision on name accessibility. Remember that the significant objectives should match those listed in e-Form INC-1.
The company’s charter and internal laws and regulations are outlined in these two papers. Because of this, the document must be written meticulously and with the help of specialists. The directors/promoters write the MOA and AOA with the help of professionals.
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Association Memorandum & Terms of Association Stamping
It is also necessary that the required number of subscribers sign the Memorandum & Articles of Association, i.e. at least ten persons, at least two of whom are producers and at least two of which are producers’ institutions.
As a condition of signing on to the memorandum, each Subscriber must write in their hand the name, profession, address, and the number of shares they have purchased.
There will also be a witness to the signatures of all the subscribers. Sign and write your name, your father’s name (if applicable), and your employment and residence in your hand.
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Appointees for the First Directors
Directors of the production company will be designated in the AOA for 90 days after the registration of the producer company. During that time, the first directors will hold office.
An exception is an interstate cooperative society established as a Producer Company and must appoint its first director within 365 days of registration.
The production company’s board of directors shall have a minimum of five members and a maximum of fifty members, respectively. They have a minimum of one year and five years of service.
E-Filing With the Registrar of Companies for Documents and Forms
- Form DIR-3 and a self-attested Proof of identity, address evidence, and a picture of the director are required to receive the Director Id Number (DIN).
- The last step is to decide on the name of a production firm. Form INC – 1 must be submitted to the Registrar with six names and the meaning of the names in the order of preference. The word PRODUCER COMPANY should appear at the end of the name.
- A list of papers must be created upon approval of the ROC’s name. The document that serves as its charter, the Memorandum of Association, must include all of the company’s goals. The by-laws of the firm will be included in the Articles of Association.
- A professional’s statement must be in the form of INC-8. Subscribing members of an LLC must execute an affidavit stating they have the legal authority to act on their behalf.
- The owner whose address will be used as the company’s registered office must provide a utility bill and a letter of authorisation (NOC). The form will be accompanied by a leasing agreement if not owned. A copy of the prepared papers will be added to Form INC-7, INC-22, and DIR-12 and submitted on the ROC website.
- The ROC will issue the producer Certificate of Incorporation, and the firm may begin its commercial activities if all requirements are met.
- If a subscriber has completed a power of attorney, that person may sign the Memorandum of Articles on behalf of the Subscriber. This document must be provided by the Subscriber’s legal representative for them to execute the Memorandum and Articles of Incorporation on behalf of the corporation. Allows an individual (professional) to make any necessary changes to their registration at the date of submission.
Following Incorporation, the Following Tasks Must Be Completed Immediately:
- Formally designate at least two signatories to the company’s bank account.
- To do business, you’ll need a PAN number from the Income Tax Department and a TIN from the Commercial Tax Department. In addition, the Business Tax Department requires the business to register for Service Tax, and the Excise Department requires the company to register for VAT.
- Request a commercial power supply connection for the PC’s office from the relevant agency/board.
- Setting up the company’s headquarters involves arranging furnishings, fixtures, and a prominent sign.
Conclusion
According to this conclusion, farmers and producers will benefit from a producer company. Farmers now access various resources, including input, financing, production technology, and a market.
The advent of Producer Company has also brought hlelp to farmers who are struggling to make a living. For more information and legal support, you can visit the website of Vakilsearch.
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