PRODUCER COMPANY

A Producer Company is a unique legal entity in India which enables a group of ‘producers’ such as farmers to collaborate in order to enhance their economic conditions. It guarantees collective earning and easy access to the markets for its members opening chances of increasing and growing within their different professions and occupations.
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Service Overview

Producer Companies make it possible for several producers to come together for better economic welfare. This organization enhances production, marketing and selling processes while eliminating risks to its members engaged in the respective industries for example agriculture, dairy and others.

‍Challenges of Filing for a Private Limited Company

Complex Procedures
The formation of the private limited company is quite complex as it requires many legal formalities.
Time-Consuming
Sometimes, its exhausting to gather all the necessary papers and fill out all necessary documents.
Share Limit
In a Private Limited Company there is a limit of 200 shareholders, with a restricted limit on share transfers.
Business Commencement
Within 180 days of registering a Private Limited Company, the certificate of commencement of business must be obtained.

‍Challenges of Filing for a Producer Company

Legal complexities of documentation
The process of forming a Producer Company involves extensive paperwork and legal procedures that can overwhelm small-scale producers without the proper guidance.
Limited access to capital
Many producers face challenges in raising capital for their businesses. They often lack the necessary financial infrastructure and investor confidence.
Lack of awareness
The majority of the small-scale producers do not appreciate the benefits that a Producer Company's scope of activities can offer. Awareness of this structure is more so educational outreach and information dissemination.
Coordination between members
While working collectively can be beneficial, it can also create challenges due to differing interests and lack of proper coordination among members, potentially stalling decision-making.

Advantages Of Registering A Producer Company

Economies of scale
A Producer Company helps businesses lower their costs by pooling resources, leading to better profitability and competitive advantage for each member involved.
Risk diversification
By combining resources, a Producer Company minimizes the risks faced by individual producers, as they share in the challenges and benefits, reducing overall exposure.
Enhanced market reach
Members of a Producer Company gain access to larger markets, which would be difficult to enter individually, boosting their chances of higher sales and revenue.
Legal and financial protection  
This structure provides producers with legal and financial protection, ensuring better compliance and structured processes that safeguard both individual and collective interests.

Service Process

01
Initial Consultation
Discuss your business objectives with our experts to determine if a Producer Company is the right fit for your needs and industry.
02
Documentation Preparation
We help you in preparing all the necessary documents required for setting up the Producer company meeting all the Indian Legal Requirements with our team.
03
Registration Process
We manage the entire registration process, guiding you through legal requirements and filing with the Ministry of Corporate Affairs to officially form your Producer Company.
04
Member Integration
We help integrate the members into the company, ensuring smooth coordination and communication among all parties involved.
05
Ongoing Support
Our team provides continuous support after formation, assisting with governance, legal compliance, and business strategy to ensure your Producer Company’s growth and success.
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Service Process

Consultation
We will have a consultation regarding your business vision and requirements to decide on whether the private limited company fits you well.
Documentation
We will help you to do the paperwork involving preparation of the Memorandum of Association and Articles of Association.
Registration
We will then forward all the necessary documents to the Registrar of Companies as required for registration.
Support
We will always be here with you to offer assistance and advice so that you can efficiently run your private limited company.
Compliance:
We will assist you in maintaining a continuing compliance with all legal and regulatory standards.
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Service Process

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Comprehensive understanding of legal structures for Producer Companies.

Expert guidance through every step of registration and formation.

Strong focus on securing financial and legal protection for all members.

Proven track record of helping businesses grow through collective strategies.

Why Choose JR Compliance?

Service Breakdown

Eligibility

Eligibility

Member requirement: A minimum of 10 members should be involved in agricultural activities and at least 2 producer institutions such as farmer cooperatives or farmer institutions.
Directors requirement: A minimum of 5 directors are required and the maximum can be 15 directors.
Capital requirement: The company must have a minimum of authorized capital to be Rs. 5 lakhs and paid up capital should be of Rs. 1 lakh at the time of incorporation.
Company name and trademark: The company’s name should not resemble any existing name or trademark registered and the name must always end with “Producer Limited Company”.

Documents

Documents

MoA and AoA: Clearly stating objectives, including production, harvesting, procurement, or marketing of goods by members.
Directors’ ID Proof: Aadhaar, PAN, and photographs for all directors.
Registered Office Address Proof: Rental agreement or electricity bill to verify the company's location.
Farmers’ Details: KYC of at least ten members who are farmers, essential to qualify as a Producer Company.
Bank Account Proof: Evidence of a corporate bank account opened under the company’s name.

Who Needs

Who Needs

Farmers: The producer company is perfect for individuals or groups involved in agricultural trade, and production.
Artisans or crafters: This type of business structure is also ideal for skilled individuals who create handmade or skillfully crafted products.
Small manufacturers: Best suited for individuals or businesses producing goods on a small scale.
Agricultural groups: It is also designed for organizations focused on farming related activities.

Creating

Trust-Driven Relationships

JR Compliance is one of the known name for BIS certification, they are well versed with processes and guide client properly.
Kartik Shah
Published on 4 March 2024
We have outsourced the entire BIS certification responsibility of our panels to JR compliance since 2017 and their service so far has been exemplary.
P N Dhawanjewar
Published on 4 March 2024
We have been using JR Compliance services since last 3 years on various BIS related registration & testing of our various IT & electronic products. We really appreciate your full-fledged & excellent support in all respect in this matter.
K Narayanan
Published on 4 March 2024
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FAQ

What is a Producer Company?
A Producer Company is a form of enterprise in which the producers unite for their mutual benefit, especially in case of agriculture or manufacture-related industries.
Who can form a Producer Company?
Individuals or associations of individuals can register a Producer Company if they are determined to enhance the production and marketing of the products or services in the sectors they operate.
How do I register a Producer Company?
To register, and submit the necessary documentation, including member details and business objectives, to the Ministry of Corporate Affairs for approval and formation of the company.
What are the benefits of joining a Producer Company?
Joining allows you to pool resources with other producers, enjoy better market access, reduce risks, and streamline business operations, leading to greater collective profit.
What are the legal requirements for a Producer Company?
Under the Producer Company, the 2013 Companies Act must be followed, and additional provisions such as a minimum of 10 members and purposes of production related to the members’ business areas must be followed.

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