Introduction
A producer company is started with a minimum of 5 directors, 10 individual producers, or 2 producer institutions, or a combination of both, and with a minimum authorized capital of ₹5 lakh. The producer company registration process is followed via the MCA V3 portal by registering with the Registrar of Companies (RoC). A producer company is registered by the primary producers who are actively involved in the agricultural sector.
Meanwhile, the registration for a producer company is straightforward and requires a strategic checklist for documentation. During the registration process, producer company registration documents must be accurate, similar across all papers, and up-to-date. Let’s dive into this guide to verify the list of documentation for a producer company, including the cost of securing documents and how to register on the MCA V3 portal.
List of Documents Required for Producer Company
This is the complete table checklist of required documents for producer company registration:
|
|
|
|
|
|
|
|
|
|
|
|
Key Detail: An NRI (Non-Resident of India) can be a part of an Indian producer company but must have stayed in India for at least 182 days during the financial year. All documents like passport, address, and identity proof must be notarized and apostilled in their country of residence.
What is a Producer Company Registration?
"Producer Company" is a formal legal business structure initially listed under Part IXA of the 1956 Act, and it continued via the Companies Act, 2013. This legal business structure is generally incorporated by the primary producers (like farmers, artisans, or fishermen). The company enjoys the private limited company benefits but operate coorperative to provide better profits to the members.
To register a producer company online in India, a minimum of 10 individuals, 2 or more producer institutions, or both. Furthermore, at least 5 designated members are required along with 10 members. As it enjoys private limited liability, the company enjoys the limited liability benefits. It means the personal assets of the producer company members are not at risk during legal obligations or debts.
What Documents Are Required for Producer Company Registration in India?
The correctness and accuracy of documents determine the registration process of a producer company. A minor mistake, whether it is related to the producer name or DOB, triggers application rejection. The documents must be submitted with the SPICe+ form on the Ministry of Corporate Affairs (MCA). The core documents required for producer company registration include:
Documents for Director/ Shareholder
- PAN Card (Mandatory): It is used to verify the director/shareholder’s identity proof and tax profile status.
- Identity Proof: Aadhaar card is used to verify the identity of designated directors and shareholders. The other additional documents include a driving license, passport, or voter ID.
- Address proof: For the address proof, the major documents required to provide are a personal bank statement, an electricity bill or telephone bill/mobile bill (any one). It must not be older than 2 months.
- Photographs: Recent colour passport-size photos with a white background of all designated members/directors.
- NRIs/Foreign Nationals: Use a copy of the passport, which must be notarized and apostilled in their resident country, including address proof.
Documents of Primary Producer Status
MCA verifies that the members must be active as primary producers in fields like agriculture, farming, handloom, dairy, etc. For agricultural land records, you can provide the Khatauni, Patta, 7/12 extract, or land ownership documents for primary producer status proof. The other documents for producer status proof include a Kisan Credit Card (KCC) copy, Produce Sale Receipt/AMPC mandi receipts, or an artisan/handloom worker certificate (if applicable).
Documents for Registered Office
- Utility Bill: For registered office proof, you must provide the electricity bill, water bill, or gas bill, which must not be older than 2 months.
- Ownership proof: For the physical office ownership proof, provide the rent agreement/lease agreement if the property is rented, along with an NOC from the owner. However, if the property is owned, provide a copy of the property tax receipt, sale deed/ownership certificate.
Additional Statutory Forms & Filing
- DSC (Digital Signature Certificate): Class 3 DSC to be obtained by all designated directors during incorporation to file documents electronically.
- DIN (Director Identification Number): The all praposed directors of the producer company are required to have a DIN. If not already, they can apply with the SPICe+ incorporation form during the registration process. Up to three DINs can be applied for via the incorporation web form.
- SPICe+ (Form INC-32): File the SPICe+, an integrated web form on the MCA (Ministry of Corporate Affairs). It is a web application form used for company incorporation, name reservation, and allotment of DIN, PAN, and TAN.
- DIR-2 (Director Consent): It is a consent letter written and signed by the newly appointed director. It is used to verify that an individual is legally able to act as a director and not disqualified by the incorporation authority.
- INC-9 (Declaration ): The subscriber and the first director of the producer company are required to submit the declaration form INC-9 to declare that they have not committed any crime or legal default.
- MOA/AOA: The company is required to draft the Memorandum of Association (MOA), which defines the company’s external operation rules, such as goals, objectives, and how it operates overall. Whereas the AOA (Articles of Association) defines the internal rules of the company. Both must be drafted by the company during the incorporation process.
How Are Producer Company Registration Documents Used?
Here is a step-by-step guide to clarify how the documents are used during the producer company registration process:
Step 1: Obtain the DSC and DIN
All proposed directors of the producer company are required to obtain a valid DSC(Digital Signature Certificate) from a licensed certifying authority like eMudhra, VSign, etc. VSign etc. To obtain the Class 3 DSC, you are generally required to provide documents like PAN card, Aadhaar card/identity proof, photographs, and a contact number/email ID. On the other hand, the DIN (Director Identification Number) can be applied for with the SPICe+ integrated form. It doesn’t require obtaining earlier, as DIN is directly allotted through the company incorporation form (SPICe+) on the MCA portal.
Step 2: Company Name Reservation (Part A of SPICe+)
Company name reservation is a mandatory process during incorporation filing. The selected name of the producer company must be unique and not similar to an existing company name or trademark. The name of the company must end with “Producer Company Limited”. For example, “Vanilla India Producer Company Limited”. The name reservation can be applied via Part A of the SPICe+ web form on the MCA V3 portal.
Step 3: Draft MOA and AOA
The Memorandum of Association (MOA) and Articles of Association (AOA) are the legal documents that work as the formal papers to run the producer company operation. Furthermore, the MOA and AOA define the company’s primary agricultural or producer objectives, internal rules, and management structure. A producer company is required to file the physical MOA and AOA rather than electronically.
Step 4: File SPICe+ Part B with all documents + AGILE-PRO
During filing of the SPICe+ Part B, you are required to attach several documents with it on the MCA portal. The linked forms you are required to attach are e-MOA, e-AOA, INC-9 (declaration), AGILE-PRO, along with address and identity proof documents.
Step 5: ROC (Registrar of Companies) Verification
Once all required documents are submitted on the MCA (Ministry of Corporate Affairs), the application enters the ROC verification phase. The officers at the Central Registration Centre (CRC) verify all submitted documents against the statutory legal documents. To track the application status, must use the SRN (Service Request Number), generated during fee payment. If the application is rejected by the authority due to document mistakes or missing documents, you are required to apply for a fresh application (the submitted fee is non-refundable).
Step 6: Certificate of Incorporation issued with CIN
The ROC (Registrar of Companies) issues the Certificate of Incorporation with CIN. It showcases, the company is legally registered on the MCA register portal. The CIN comes with a 21-digit identification number.
Conclusion
Documents missing can leave the Producer Company registration process incomplete. Before starting the incorporation process, your first step is to confirm which documents are required for Producer Company registration.
To make the Producer Company registration process quick and hassle-free, contact a legal advisor like JustStart, who specializes in helping new entrepreneurs reach their goals. JustStart has extensive experience with Producer/FPO company registration, including turnaround times, and also offers free document-checklist consultations.
Frequently Asked Questions
Q1. Is Aadhaar mandatory for producer company registration?
Ans. No, Aadhaar card is not strictly mandatory during producer incorporation. Alternative documents like driving license, voter ID, or passport can be used in place of Aadhaar card for identity proof.
Q2. Can an NRI be a director in a producer company?
Ans. An NRI (Non-Resident of India) can be the director in a producer company, permitted under the Companies Act, 2013. But they are required to meet the specific legal and operational conditions.
Q3. What documents are required if the property is rented?
Ans. If the property is on rent for a producer company, you are generally required to provide the signed rent agreement, a NOC (No Objection Certificate), and a recent utility bill. The document must not be older than 2 months.
Q4. How many directors are required for DIN before applying?
Ans. At least one director is required to obtain the DIN (Director Identification Number) for company registration. Further, a maximum of three DINs can be applied during filing of SPICe+ web form on the MCA portal.
Q5. How many minimum shareholders are required for producer company registration?
Ans. For producer company registration, a minimum of 10 individuals, two institutions, or a combination of both is required.
Q6. How to register a producer company online in India?
Ans. To register a producer company in India, you are first required to meet eligibility criteria, prepare the required documents for producer company registration in India, and register with ROC on the MCA V3 portal. Once the documents and application are approved, ROC will issue the Certificate of Incorporation along with CIN.
Q7. Who cannot register a producer company in India?
Ans. Non-farmers, general investors, and foreign nationals cannot register a producer company in India. This is because a producer company can be only register by individual who is active as a primary producer or producer institutions, mandated under the Companies Act, 2013.
Q8. What happens if my application for a producer company is rejected?
Ans. If the application is rejected by the ROC (Registrar of Companies ), you must first verify the cause of rejection. The MCA portal usually flags the rejection reason. Verify the remark, submit additional documents for proof, and reapply or resubmit on the MCA V3 portal.
Q9. Which class of DSC is required for producer company registration?
Ans. To register a producer company in India, the directors are generally required to obtain the Class 3 DSC (Digital Signature Certificate). The DSC is required to electronically sign the documents on the MCA portal.
Q10. What if my registered office address documents are older than 2 months?
Ans. If the registered office address documents like a utility bill are older than 2 months, the ROC (Registrar of Companies) generally rejects the application or asks to resubmit the updated documents.
Q11. Why can't foreign nationals register a producer company in India?
Ans. Foreign nationals cannot incorporate a producer company in India. As per the FEMA guidelines, foreign nationals are retricted to engage in Indian agriculture or farming activities. Furthermore, foreign nationals are not legally allowed to buy land for farming or any agricultural activities in India, which directly makes it impossible for them to incorporate a producer company.
