Producer Company Incorporation Procedure in India by CS Charu Sharma


 

PRODUCER COMPANY IN INDIA

The concept of Producer Company in India was introduced to allow cooperatives to function as a corporate entity under the Ministry of Corporate Affairs. In this article, we look at the procedure for registering a Producer Company in India, under the Companies Act, 2013.

 

 

 

 

 

 

 

 

PRODUCER COMPANY OVERVIEW

 

 

Definition:The Companies Act defines Producer as any person engaged in any activity connected with or relatable to any primary produce (Produce: “things that have been produced or grown, especially by farming”). A Producer Company is thus a body corporate having an object that is one or all of the following:

 

 

Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit.

 

 

Further, the Producer Company must deal primarily with the produce of its active Members and is allowed to carry on any of the following activities by itself or through other entities – on behalf of the members.

 

 

Objects:

 

 

1.      processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its Members;

 

 

2.      manufacture, sale or supply of machinery, equipment or consumables mainly to its Members;

 

 

3.      providing education on the mutual assistance principles to its Members and others;

 

 

4.      rendering technical services, consultancy services, training, research and development and all other    activities for the promotion of the interests of its Members;

 

 

5.      generation, transmission and distribution of power, revitalisation of land and water resources, their use, conservation and communication relatable to primary produce;

 

 

6.      insurance of producers or their primary produce;

 

 

7.      promoting techniques of mutuality and mutual assistance;

 

 

8.      welfare measures or facilities for the benefit of Members as may be decided by the Board;

 

 

9.      any other activity, ancillary or incidental to any of the activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner;

 

 

10.  Financing of procurement, processing, marketing or other activities which include extending of credit facilities or any other financial services to its Members.

 

 

PRODUCER COMPANY REGISTRATION(REQUIRED MEMBERS)

 

To register a Producer Company in India, the following members in any of the combination is necessary:

 

 

1.      Ten or more individuals, each of them being a producer; or

 

 

2.      Two or more producer institutions; or

 

 

3.      A combination of ten or more individuals and producer institutions

 

           

PROCEDURE FOR INCORPORATION OF COMPANY

1.      An application in new version of Form INC 7  is to be filed with the Registrar along with the following attachments:

2.      Duly signed Memorandum of Association of Company(as per Table A of Schedule 1 of Companies Act 2013)and Article of Association of Company (as per Table F of Schedule 1 of Companies Act, 2013)

3.      Declaration by professional in Form INC 8 that all the requirements of Companies Act, 2013 and Rules made there under have been complied with

4.      An Affidavit from each of the Subscribers to Memorandum and the First Directors in Form INC 9.

5.      The address for correspondence till the date Registered Office is established.

6.      The particulars of subscriber along with the Identity Proof shall be filed with the Registrar along with Form INC 10.

7.      The particulars of First Directors of the Company shall be filed with the Registrar along with their Identity Proof.

8.      Form DIR 12 is to be filed by the first Directors of the Company giving their consent in Form DIR 2 to act such and disclosing their interest in other firms or body corporate.

9.      The Registrar on being satisfied shall issue Certificate of Incorporation in Form INC 11.

10.  Once the Certificate of Incorporation has been issued by the Registrar, following forms is to be filed with the Registrar before commencing any business activities:-

11.  Form INC 22 verifying the Registered Office address along with the attachments.

WHERE ANY SUBSCRIBER IS ILLITERATE?

Where any subscriber is an illiterate person, he can give his thumb impression or mark on the column for signature in Memorandum of Association, Article of Association and his name, address description and occupation and number of shares agreed to be taken by him shall be written by another person writing for him above the mark.

 FORMS:

DIN Forms

 

Form Name

Purpose of the Form

        Department

 

DIR-3

Application for allotment of Director Identification Number

            ROC

 

 

Incorporation Forms

 

 

 

 

 

Form Name

Purpose of the Form

       Department

 

 

INC-1

Application for reservation of name

           ROC

 

 

INC-7

Application for Incorporation of Company (Other than OPC)

           ROC

 

 

DIR-12

Particulars of appointment of Directors and the key managerial personnel and the changes among them

           ROC

 

 

INC-22

Notice of situation or change of situation of registered office

           ROC

 
         

 
Author: CS Charu sharma. She can be contacted at cscharu39833@gmail.com.
She is registered as an Expert at Experts.compliancecalendar.in and her full profile can be seen there.

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