Producer Company Registration in Gujarat
Looking for a reliable producer company registration consultant in Gujarat? Legal Adda specializes in assisting farmers, producers, and artisans with registering Producer Companies. These companies enable collective production, processing, and marketing, offering economies of scale, better bargaining power, and shared resources like storage and distribution networks.
Legal Adda provides end-to-end services, including documentation, filing with the Registrar of Companies (RoC), drafting the Memorandum of Association (MoA) and Articles of Association (AoA), and ensuring compliance with the Companies Act, 2013. With expertise in Gujarat’s legal landscape, we offer tailored support for agriculture, farming, handicrafts, and other production-related fields.
Contact Legal Adda today to streamline your Producer Company registration and unlock the benefits of collective production and marketing in Gujarat.
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Understanding the Producer Company Act, 2013
The Producer Company Act, 2013, provides a legal framework that enables farmers, producers, and artisans to form companies for collective production, marketing, and processing of their goods. Moreover, the Act allows producers to unite, share resources, enhance bargaining power, and reduce reliance on intermediaries, thereby improving their returns. It defines a “Producer Company” as an entity formed by producers for activities such as marketing, processing, or storage of produce, combining cooperative principles with the benefits of company law. In addition, with limited liability, profit-sharing based on production, and democratic governance, the Producer Company strengthens rural communities and promotes collective entrepreneurship in sectors like agriculture and handicrafts.
Eligibility Requirements for Producer Company Registration
To register a Producer Company in India, participants must meet specific criteria for collective growth:
- Minimum Members: A Producer Company must have at least 10 members or two or more producer institutions (e.g., cooperatives).
- Producer Members: All members must be direct producers, including farmers or artisans.
- Legal Structure & Objectives: The primary focus is on collective production, marketing, and processing of agricultural produce, along with providing support services.
- Democratic Control: Voting rights are based on contributions, not capital investment, and members elect a Board of Directors to manage the company’s affairs.
- Private Limited Registration: The Producer Company must register under the Companies Act, 2013.
- Limited Liability: Members are liable only to the extent of their shareholding.
- Registered Office: The Producer Company must have a registered office within India.
- Compliance: The company must comply with the Companies Act, 2013, which includes filing returns and holding annual meetings.
- Purpose: The Producer Company must focus on enhancing members’ welfare and economic growth rather than solely generating profit.
By meeting these criteria, a Producer Company can effectively support its members’ growth and success.
Exploring the Types of Producer Companies in Gujarat
Production Businesses: These companies focus on producing, procuring, and manufacturing primary products from their members. They play a vital role in aggregating and processing produce to enhance its value for producers.
Marketing Businesses: These Producer Companies market or promote the primary products of their members. They may also provide educational services related to marketing, helping members gain better access to markets and increase product value.
Technical Assistance Businesses: These companies provide technical support, training, and educational resources to producers, improving their knowledge and skills in production-related activities. This category helps members enhance production techniques and overall business efficiency.
Finance Businesses: Producer Companies offering financial services to their members fall into this category. They provide financial assistance to support production activities, including loans, subsidies, and investment opportunities.
Infrastructure Businesses: These Producer Companies focus on providing essential infrastructure services to their members, such as electricity, water, irrigation, and other facilities that support production activities.
Each type of Producer Company in Gujarat serves specific needs and offers a platform for producers to collaborate, share resources, and collectively improve productivity and profitability.
Required Documents for Producer Company Registration in Gujarat
Documents Checklist for Producer Company Registration:
- PAN Card of Directors
- Identity Proof of Directors (Aadhar Card/ Voter ID / Passport / Driving License)
- Address Proof of Directors/Members (Utility Bill / Bank Statement)
- Passport Size Photo of Directors (Via Email)
- Proposed Name of the Company
- Address Proof for Company’s Registered Office (Utility Bill & NOC)
- Mobile Number and Email ID of Directors
- For Foreign Directors: Documents must be notarized & apostilled
Charges for Producer Company Registration in Gujarat
For a Producer Company registration in Gujarat with ₹30,000 authorized capital:
Our Consultancy Fee: ₹30,000 (includes expert guidance, document preparation, filing, and follow-ups).
Complete Process of Producer Company Registration in Gujarat
Choose a unique name and submit it for approval through the SPICe+ form. The approval remains valid for 20 days.
Directors must acquire a Digital Signature Certificate (DSC) and Director Identification Number (DIN) by submitting PAN, Aadhar, photos, and contact details through SPICe+.
Complete the online SPICe+ form with company details, member information, and applications for DIN, PAN, and TAN, and submit a signed affidavit.
Draft the Memorandum of Association (MOA) and Articles of Association (AOA), and have all subscribers sign an affidavit confirming legal eligibility.
The Registrar of Companies (ROC) verifies all submitted documents and may request corrections if any issues arise.
After successful verification, the ROC issues the Certificate of Incorporation, PAN, and TAN, enabling the company to open a bank account.
Benefits of Registering a Producer Company in Gujarat
Deposit Acceptance: A Producer Company can accept fixed and recurring deposits from its members, providing a secure way to raise capital.
Loans Against Security: The company can offer loans to its members against securities like gold, fixed deposits, or other legal documents, helping members access financial support when needed.
Profit Distribution: The Producer Company retains its profits within the organization and distributes them among members based on their contributions, promoting shared success.
Tax Exemption: Agricultural income generated by the Producer Company remains exempt from tax, providing financial relief and boosting profitability for members.
Efficient Management: The company is managed by a board of directors, ensuring professional management and better decision-making compared to individual farmers managing large operations.
Separate Legal Entity: The Producer Company has a separate legal identity, allowing it to continue functioning even if any member leaves or passes away, ensuring continuity.
Limited Liability: Members’ liability remains limited to the unpaid value of their shares, protecting personal assets and ensuring minimal risk.
Access to Government Schemes: Producer Companies can access various government schemes aimed at supporting agricultural producers at both state and national levels.
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Frequently Asked Questions about Producer Company Registration in Gujarat
What is the minimum number of members required for registration?
A minimum of 10 members or two producer institutions are required to form a Producer Company.
How long does the registration process take
The process typically takes 10-15 days after submission of all necessary documents, assuming there are no issues with verification.
A Producer Company is governed under which law?
The formation and regulation of the Farmer Producer Company is governed under the provisions of the Companies Act, 1956, along with Companies Act, 2013, and the rules made thereunder.
What is the minimum capital of a producer company?
A Producer Company requires a minimum capital of ₹5 lakhs and at least ten producers as members. It can have up to 15 directors and a maximum of 200 members if it operates as a private company.
