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Posted on November 24, 2021
Post Incorporation Compliance for Producer Companies
Meaning of Producer Company can be understood as a body corporate which is registered as a Producer Company under the relevant act which is the Companies Act, 2013. The company should be carrying on or relating to any of the below mentioned activities:
(a) The processes like production, harvesting, processing, procurement, grading, pooling, handling, marketing, selling, and export of primary produce of the Members or import of goods or services for their own benefit;
(b) Providing the required technical services, consultancy services, training, education, research and development, and all other activities for the promotion of the interests the members coming under it;
(c) Generating, transmitting and distributing power, and also revitalization of land and water resources, their use, conservation, and communications relatable to primary produce;
(d) Promoting of mutual assistance, welfare measures, financial services, providing insurance to the producers or such producers primary produce.
Producer Company Registration
For registering a producer company, the following members are required:
– 10 or more individuals each of whom are producers, or
– 2 or more producer institutions, or
– A combination which is made of 10 or more individuals and also the producer institutions.
Firstly, the proposed directors should obtain digital signature for the proposed directors, as the same is required for registering the company with the MCA. After which they should also obtain DIN or Director Identification Number.
Once these steps are done with the company should give name approval, which should be filed with MCA with the words, ‘Producer Limited Company’ should be filed in the prescribed form and after receiving the approval of name an application for incorporation should also be given. If the registrar is satisfied with the details furnished in the application, then the same shall be approved and a certificate for commencement of operations shall be given. The functioning will be similar to that of a private limited company, but it is to be noted that a producer company does not have any limit with respect to the number of members like a private limited company.
The production company will pay the surplus earned by the company would be given as a patronage bonus to the members of the producer company. They may also be given shares in the same ratio in which the shares are held by them.
Post Incorporation Requirement of Producer Companies
Maintaining a Registered Office:
The Producer Company should maintain a registered office, once the company is registered. The name of such registered office shall be filed by the company with MCA or Ministry of Corporate Affairs. This can be in a corporate building or residential complex on a rental basis or ownership basis.
Conducting Board Meeting
Within 30 days of incorporation, the company should hold a Board Meeting, in which the discussion regarding the following elements should be made:
– The approval for opening a current account,
– Appointing First Statutory Auditor,
– Authorizing Statutory Registrations.
The company should get the letterhead ready as soon as possible as it is required for taking PAN or taking bank account or such other compliances. And it should contain the name of the company along with the address of its registered office, CIN (Company Identification Number), phone number along with the e-mail ID and website address or such other details as may be required.
Board to be kept outside the Office
Outside the registered office and such other place of business of the company, a board with the name, and details of the registered office should be kept outside the office. This will help people find details of the company with regard to the place of business.
GST Registration and IEC Code Availing
The company should then take a GST registration or IEC (Import Export Code) which is required by businesses for major functions and business transactions or proceedings.
A current account should be opened by the company in its name with the details of its registered place or office of business and the subscribers of the company should then contribute such prescribed amount to the account.
Issuing Share Certificates
The company should provide the subscribers of the Memorandum of Association (MOA) with a share certificate within 2 months from the date of incorporation of the company. The share certificates should be issued only after receiving the money from the shareholders through a proper banking channel.
Maintaining Statutory Registers and Minute Books
Companies Act 2013 stipulates that the company should maintain certain books on a mandatory basis and this would include statutory books, registers, and minute books as well. And if the company fails to comply with the same, fines shall be charged as per the penal provisions of the Companies Act.
Register of Members
The name and details of the subscribers should be documented in the Register of Members with the date of incorporation of the company as the date on which the subscribers who are deemed to be the members of the provided company.