Producer Company Registration in Meghalaya
A Producer Company Registration in Meghalaya is a kind of organization where a group of primary producers i.e, farmers or non-farmers comes together with an object to trade their products locally and internationally. The producer company Registration is registered as a private company function of the producer company Registration is, procuring, harvesting, grading, producing, pooling, marketing, exporting, and import of goods. Producer Company Registration in Meghalaya functions under the Ministry of Corporate Affairs and it is governed by the Companies Act 2013.
Features of the Producer Company Registration in Meghalaya .
- A producer company’s liability is limited to the number of unpaid shares.
- Producers' company share capital consists of only equity shares. These shares can be easily transferred and are not traded publicly.
- The company's name must end with' Producer Company Limited'
- Every member of the organization has the right to vote.
- The producer company must conduct annual general meetings every year.
- A company must have a minimum of 5 directors and the maximum can be 15.
- The members of the producer company Registration should appoint a CEO for full time.
- The company must conduct a board meeting every 3 months and at least 4 times a year.
- The company must maintain a general reserve every year.
Benefits of the Producer Company Registration in Meghalaya
- These companies provide assistance to the farmers.
- The members of the producer company will receive value for the products given in the form of cash, kind, or shares.
- In addition, the members will get bonus shares upon the shares held by them.
- The surplus may be given as a patronage bonus. Patronage bonus means the bonus given to the members according to their active participation in the business using the service offered by the company.
- One of the most important benefits is that the members can easily receive credit facility for the period not exceeding 6 months and should be for business purposes only.
- Obtaining loans and advances are made easier for farmers here, for a period of not exceeding 7 years from the date of loan taken.
- SFAC, NABARD, the department of government, and domestic and aid officers have set up financial support for this kind of company. NABARD has set up a ? 50-crore Producer Organization Development Fund(PODF) for the benefit of farmers.
How to Register a Producer Company
- Step 1: To start a producer company Registration, you must require
- Step 2: Minimum of 10 producers or 2 or more institutions.
- Step 3: It can be started with a capital of 5 lakhs.
- Step 4: It should have a minimum of 5 directors and a maximum is 15.
- Step 5: It can never be converted into a public company but it can be converted into a multi-state co-operative society
Process of Registration of Producer Company
In order to claim certain benefits, you must register your company. The process of registration of a producer company is similar to private company registration, if you want to start a producer company you must look into the below easy
- The first step is to obtain Digital Signature Certificate from all the proposed directors, so documents for the same is
- Pan card of directors
- Aadhar card of directors
- Email address
- Contact number
- The next step is to obtain Directors's Identification Number, for that, you must fill DIR-3 attesting photo, identity proof, and address proof.
- After obtaining DSC and DIN, you must apply for the name of the company, for that you need to fill out form INC-1 to the Registrar of Company (ROC) by giving 6 names. The name should have the producer company at the end
After the name approval, you must prepare
- A declaration should be drafted by a professional in the form INC-8
- An affidavit has to be signed by all the members declaring their legal competency to act as subscribers.
- A utility bill and a NOC should be obtained from the owner of the registered office, if it is in a lease then the lease agreement.
- Then fill up forms DIR-2 and DIR-8
- After all the documents required are prepared, the same must be attached to forms INC-7, INC-22, and DIR-12 and upload to the ROC website.
- After all the verification is done, the ROC will issue a Certificate of Incorporation and the company can start its business.
So this was the procedure for the Registration of the Producer Company.
Benefits for Registration of Producer Company
- The producer company is termed as a separate legal entity, so it enjoys benefits such as owning property in the name of the company.
- If a company is registered as a farmer's producer company then the company is fully exempted from tax if that company has a 100 crore turnover annually.
- Registration of the producer company helps in the management of the business as the procedure is already prescribed.
- The government supports this kind of company and helps with loans and investments.
Difference between Producer Company and co-operatives.
What is a cooperative society?
A cooperative society is an independent association of people in order to meet a common economic goal. A cooperative society ensures that the interest of poor people is served. Even though, the producer company is a private company has similar characteristics to a cooperative society.
A producer company is different from a cooperative society and this is explained below.
- A producer company is governed by the Companies Act 2013 and a cooperative society is governed by the Cooperative Society Act.
- Producer Companies can be operated anywhere in India but cooperative society's operation is restricted to certain areas.
- The shares of a cooperative society are non-tradable and cannot be transferred but shares of producer companies are non-tradable but can be transferred.
- The producer company can have multiple objectives whereas a cooperative society can have only one objective.
- The Government of the registrar holds maximum voting power in a cooperative society but in a producer company, the members of the company have the power to vote.
- The producer company‘s dividends are shared proportionate to the volume of business. In a cooperative society, the dividend is given up to their shares.
- The government of India plays a major role in a cooperative society, in a producer company government is required only for minimal requirements.
- The creation of reserves is compulsory in a producer company but it is not mandatory in a cooperative society.
- If there are any changes that need to be done in a cooperative society, it must obtain approval from the registrar. But in producer companies, the changes can be made by a member through general meetings.
- The relationship between cooperative society and other corporate entities is based on transactions. But in producer companies, the producers and other corporate entities transact together.
Although producer companies and cooperative society features are similar the way they perform is quite different. So this was the major difference between a producer company and a cooperative society.
Termination of a producer company
Termination or winding up of business is where you stop conducting transactions and collect all the remaining assets and pay off your liabilities. Winding up of business can occur due to
- Compulsory winding up by the tribunal
- If the company had decided to wind up by tribunal in agreement then winding can be done
- If the company has acted against the regulations of that state.
- If a company has not maintained a proper record of its financial statements in the last 5 years.
- If the trades of business are against law.
- If the tribunal has an opinion that it is fair to dissolve the business.
Process for winding up of business
- A petition has to be filled by a creditor in form NCLT with all the documents required and the same must be verified by affidavit and submitted. After all the verification, the tribunal will pass an order for winding up within 90 days of the presentation of the petition.
- The winding-up can file an objection within 30 days of judgment and provide extra 30 days for special circumstances and the directors must submit audited books of accounts for the tribunal after the order is passed.
- For the process of liquidation, the tribunal will appoint a provisional liquidator for the company, he can be replaced if he does any fraud within 7 days of appointment.
- The same information will be indicated to the registrar and the same to the gazette office.
- Within 3 weeks the committee for assisting the provisional liquidator will be appointed and then they will submit all the information within 60 days.
- The tribunal will verify all the information and later it passes an order for the dissolution of the company.
- Voluntary winding up of company
- If a company passes the decision to close the business then it’s made.
- If the business was established for a specific job and the work is done.
Procedure for voluntary winding up of company
- The directors must pass resolutions for winding up and call for general meetings.
- Within 10 days of passing a resolution, you should file a notice for an appointment of a liquidator in the registrar.
- The notification must be sent to the official gazette.
- You should even publish an advertisement in a newspaper within 14 days of passing the resolution of winding up of business.
- Within 30 days of passing an ordinary or special resolution, the file required certified copies of a resolution passed in a general meeting.
- End every transaction and send the books for audit.
- Call for a general meeting, and pass a special resolution regarding the disposal of books.
- File a copy of the books and application to the tribunal for dissolution within 15 days of the final meeting.
- After all the verification is done, the tribunal will pass the declaration within 60 days of receiving the application. The appointed liquidator will file the copy to Registrar and after dissolution, the registrar will notify the gazette official about it.
So these were the steps involved in the termination of the producer company.