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A. Pointers should be kept in mind prior to incorporation of a Producer Company:
The preparatory steps to be followed for the incorporation of a Producer Company are as follows:
a. Identify a group of people for the formation of Producer Company who will become a member of the Company.
b. Conduct a Feasibility Study in order to form a Producer Company aligned with the aims and objects of the members. Plan for business activities that are possible to improve incomes.
c. Identify the main object of the Producer Company.
d. Identify the directors of the Producer Company.
e. Finalisation of the Authorised share capital.
f. Define a post-incorporation working cycle and introduce the same to the members and empower them with the details and benefits of a producer company.
i. Have a group meeting and motivate eligible members to become shareholders.
j. Once the primary producers are willing to form a Producer Company and are ready to contribute to the share capital appoint a professional for the incorporation of a Producer Company.
B. Below mentioned are the important documents required while incorporating a Producer Company:
I. Number members required to form a Producer Company:
As per applicable provisions of the Companies Act, any one of the following combinations can form a Producer Company:
• Any ten or more individuals each of them being a producer
• Or any two or more Producer Institutions
• Or Combination of 10 or more individuals and Producer Institutions
II. Minimum number of directors required for the formation of a Producer Company:
As per applicable provisions of the Companies Act, every producer company shall have at least five and not more than fifteen directors provided in the case of an inter-state co-operative society incorporated as a Producer Company, such company may have more than fifteen directors for a period of one year from the date of its incorporation as a Producer Company.
III. Documents required for incorporation of a Producer Company.
1. Application for DIN: The Directors of the proposed Producer Company are required to obtain DIN (Director Identification Number) in order to become a director in the proposed company.
2. Finalisation of details and documents:
a. The name of the Producer Company;
b. Authorized and Subscribed Capital;
c. Particulars of all ten subscribers;
d. If there is any change in promoter subscribers No objection has to be attached;
e. Memorandum of Association and Articles of Association along with subscriber sheet;
f. Declaration in Form INC – 9 of all subscribers;
g. Declaration in Form INC - 8, by practising professional like Company Secretary, or an advocate, or a or a Chartered Accountant or a Cost Accountant, who is engaged for the purpose of incorporation;
h. Self-attested copy of PAN of all subscribers;
i. Self-attested copy of PAN Aadhaar Card / Driving License / Voter Id / Passport as proof of identity;
j. Latest copy of Electricity Bill / Mobile Bill / Telephone Bill / Bank Statement as proof of address;
k. One of the most crucial important documents is proof of farming 7/ 12 extracts of Agricultural Land or certificate from District Tahsildar (proof of farming will differ state to state);
l. Consent to act as director in Form DIR – 2;
m. Electricity Bill of registered office address;
n. The Registrar may accept the statement (made by an Advocate/ Company Secretary/ Chartered Accountant/Cost Accountant, who is engaged in the formation of the Company and by anyone who subscribed his name to the incorporation document, that all the requirements of this Act and the Rules made thereunder have been complied with, in respect of incorporation and matters precedent and incidental thereto) as sufficient evidence that the requirement has been complied with.
After submission of all above-mentioned documents in the prescribed form the, after due satisfaction the Registrar will issue the Certificate of Incorporation. Which form the conclusive evidence of the formation of a Producer Company.
Article By: Ms Bhavya Sharma, a
Practising Company Secretary from Delhi. In
order to know more about how to set up a producer company or any related queries
thereto, you can contact us at legal@bhavyasharmaandassociates.com or for
more details you can visit: www.bhavyasharmaandassociates.com
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