The Indian economy leans heavily on agriculture, with approximately sixty percent of the population relying on agricultural activities to sustain their livelihoods. However, farmers and primary producers in India have faced considerable challenges.
In response to these pressing issues, the Indian Government took a proactive step by constituting an expert committee, led by the economist Y.K. Alagh, to scrutinise the situation. In 2002, this committee introduced the concept of Producer Companies as a solution. In this article, we shall see the process of incorporation of a Producer Company through SPICe+.
Producer Company Registration in India
Despite the nation’s rapid growth, farmers frequently confront hurdles such as limited access to advanced technology, uneven distribution of resources, and, sadly, resort to desperate measures, including instances of self-harm. Acknowledging the gravity of this situation, the Government has taken proactive measures by forming an expert committee to tackle the pressing issues confronting farmers.
Producer Company Registration is a vital initiative introduced in response to the challenges faced by farmers in India. These companies are registered under the Companies Act and operate with common objectives related to procurement, agro production, post-harvesting tasks, importation of goods, and the selling and export of primary production. The primary aim is to enable members to reap greater benefits by collectively addressing the challenges inherent in the agricultural sector.
Key Features of a Producer Company
A producer company is characterised by the formation of a committee comprising 10 or more individuals and two institutions. These entities come together with a shared goal of engaging in agricultural and post-harvesting activities. In simpler terms, a producer company can be understood as a collaborative effort of farmers working together for their collective betterment and improved livelihoods.
Pre-Registration Conditions for the Incorporation of a Producer Company through SPICe+
To initiate the incorporation of a Producer Company through SPICe+ in India, certain prerequisites must be met:
1. Minimum Membership and Directors:
A minimum of 10 members and 5 directors is required for the formation of a producer company.
2. Paid-up Capital Requirement:
The company must have a minimum paid-up capital amounting to Rs. 5 Lakhs.
3. Equity Share Capital:
Producer companies are restricted to having only equity share capital in their structure.
4. Non-Public Company Status:
Producer companies are not eligible to acquire the status of a public company.
5. Board Meetings Frequency:
The company is obligated to conduct a minimum of 4 board meetings per year, equivalent to one meeting every three months. Adherence to this frequency is essential.
Documents Required for the Incorporation of a Producer Company through SPICe+
Several documents are essential for the successful incorporation of a Producer Company through SPICe+:
1. Identification Documents:
Permanent Account Number, Voter ID, or Passport of all shareholders and directors.
2. Financial Records:
Updated bank statements of the company.
3. Additional Identification Documents:
Voter’s ID, Passport, or Driver’s Licence of all shareholders and directors.
4. Photographs:
Passport-sized photos of all shareholders and directors.
5. Residential Proof:
Copy of any utility bill, such as electricity or gas bill, serving as a residential proof.
6. Property-related Documents:
In the case of a rented property, a copy of the rent agreement and a No Objection Certificate from the owner.
In the case of owned property, a copy of the property papers.
Procedure for Incorporation of a Producer Company through SPICe+ Form
The process of incorporation of a Producer Company through SPICe+ form closely mirrors that of private entities. The following steps provide the process of incorporation of a Producer Company through SPICe+:
Step 1: SPICe+ Login
- Visit the MCA portal and go to MCA services, then select the SPICe+ form.
- Choose “New Application” for new company registration or select the existing application with an approved/proposed name.
Step 2: SPICe+ Part A
- In the new application, SPICe+ Part A prompts you to fill in fields related to name reservation.
- Provide information on class, type, category, and proposed name, and hit the Auto check button for the portal’s first-level scrutiny.
- Submit the name reservation and proceed to incorporation, opening a web form with various sections.
Step 3: SPICe+ Part B
- Complete each section of Part B, ensuring validations occur.
- Enter details about the firm, such as correspondence address, capital, and subscribers’ and directors’ information.
- Provide information on Permanent Account Number and Tax Deduction Account.
- Upload soft copies of mandatory documents, give consent to declarations, and select pre-scrutiny.
- After pre-scrutiny validation, hit Submit, and a confirmation message will be sent to your registered contact details.
- Obtain the SPICe+ Part-B PDF for DSC affixing, activating relevant linked forms based on Part-B information.
Step 4: AGILE –PRO
- File AGILE –PRO as linked with SPICe+ for GSTIN, EPFO, ESIC, Professional Tax Registration, and Bank account number.
Step 5: EMoA And EAoA Form
- File the Electronic Memorandum of Association and Electronic Articles of Association as linked forms to SPICe+.
Step 6: URC-1 INC-9 PDF Generation
- For Part-I companies, file a URC-1 form with details of the existing entity.
- The INC-9 declaration form will populate based on Part B information for download and DSC affixing.
Step 7: Spice + Upload
- Affix Digital Signature Certificates in the Part B PDF and linked forms.
- Click “upload forms” and upload the Part-B PDF and all relevant linked forms.
- Upon successful uploading, a unique service request number will prompt on the screen.
Final Thoughts
The incorporation of a producer company through SPICe+ form simplifies the registration process, aligning it closely with the procedures for private entities. The simple approach, starting from SPICe+ Part A for name reservation to SPICe+ Part B for comprehensive details and document submission, ensures a systematic and efficient registration process. The incorporation journey includes additional steps like filing AGILE –PRO for essential registrations and submitting Electronic Memorandum and Articles of Association. The URC-1 INC-9 forms further facilitate seamless documentation. With the convenience of digital signatures and online uploads, the SPICe+ platform enhances accessibility, making producer company incorporation a more accessible and transparent endeavour for entrepreneurs in the agricultural sector.
