The document outlines the registration process for forming a Producer Company or Producer Organization under the Producer Companies Act of India. It discusses the requirements for formation including having a minimum of 10 individuals or 2 producer institutions, limits on the number of directors, process for electing directors, and contents of the Memorandum and Articles of Association. It also describes the steps after registration like opening a bank account, obtaining necessary registrations, and documents and registers required to be maintained on an ongoing basis.

1. Registration Process of Farmer
Producer Organization

2. Formation of PC (581C)
• Any ten or more individuals, each of them
being a producer or
• any two or more Producer institutions or
• a combination of ten or more individuals and
Producer institutions, desirous of forming a
Producer Company having its objects specified

3. Number Of Directors(581O)
• Every Producer Company shall have at least
five and not more than fifteen directors :
– Provided that 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

4. APPOINTMENT OF
DIRECTORS(581P)
• the Members who sign the memorandum and the articles may designate therein the Board of
directors (not less than five) who shall govern the affairs of the Producer Company until the
directors are elected
• The election of directors shall be conducted in General Boy Meeting within a period of ninety days
of the registration of the Producer Company :
• Every person shall hold office of a director for a period not less than one year but not exceeding five
years as may be specified in the articles.
• Every director, who retires in accordance with the articles, shall be eligible for re-appointment as a
director.
• the directors of the Board shall be elected or appointed by the Members in the annual general
meeting.
• The Board may co-opt one or more expert directors or an additional director not exceeding one-fifth
of the total number of directors or appoint any other person as additional director for such period
as the Board may deem fit : Provided that the expert directors shall not have the right to vote in the
election of the Chairman but shall be eligible to be elected as Chairman,

5. Steps Of Forming Producer
Company
1. Application of pan card for the individual farmer Members
and farmers institutes Members
2. Digital signature certificate for at least one Director
3. Director Identification number(DIN)
4. Naming of a producer company
5. Preparation of Memorandum and Articles of Association
6. Documents to be submitted to the Registrar Of
Companies for incorporation of producer company
7. Certificate of incorporation
8. Tasks to be completed immediately after incorporation of
producer company

6. Application of pan card
• On successful submission of online application for
allotment of PAN( Form 49A) and payment , an
acknowledgement receipt is generated.
• Save and take a print out of the acknowledgement receipt.
• Duly signed and photos affixed acknowledgement receipt
along with prescribed supporting documents (for
cheque/DD mode of payment) should be sent to NSDL at
5th Floor Mantri Sterling , Plot No. 341, Survey No. 997/8,
Model Colony, Near Deep Bungalow Chowk, Pune-411 016.
• The 15 digit acknowledgement no. appearing on the
acknowledgement receipt can be used for tracking status of
application.

7. Digital signature certificate
• The prescribed application form for DSC is available at
the website of Ministry of Corporate Affairs
(henceforth website of MCA).
• After filling the required information, the form has to
be submitted online to the ‘Certification Agencies’.
• The DSCs are typically issued with one to two year
validity. These are renewable on expiry of the period of
initial issue. The official fee for issuance of DSC is `
1800/-.
• In addition, the Certification Agency charges a service
fee which vary from agency to agency.

8. Director Identification number(DIN)
• The DIN number can be obtained online only
from the company affairs cell at Noida, UP
without any fees by providing identification
proof number (Only PAN Card, Voter Identity
card, passport or driving license number is
accepted). The prescribed form is available in
the website of Ministry of Corporate Affairs
and the application can be done online.

9. Naming of a producer company
• A Producer Company should be named using the following
suffix “…..Producer Company Limited” appropriately
indicating its status of producer company.
• Select, in order of preference, at least one suitable name
up to a maximum of five names, indicative of the main
objects of the company.
• Ensure that the name does not resemble the name of any
other already registered company and also does not violate
the provisions of emblems and names.

10. ….Contd
• Apply to the concerned Registrar of Companies to
ascertain the availability of name in INC-1 by logging in
to the portal (http://www.mca.gov.in).
• A fee of ` 1000/- has to be paid alongside and the
digital signature of the applicant proposing the
company has to be attached in the form.
• If all the proposed five names are not available, the
applicant will be intimated by Registrar of Companies
(RoC) and subsequently the applicant has to apply for a
fresh name on the same application.

11. MEMORANDUM OF PRODUCER
COMPANY (581F)
• The memorandum of association of every Producer Company shall state : -
– (a) the name of the company with "Producer Company Limited" as the last words of the name
of such Company ;
– (b) the State in which the registered office of the Producer Company is to situate ;
– (c) the main objects of the Producer Company shall be one or more of the objects specified in
section 581B ;
– (d) the names and addresses of the persons who have subscribed to the memorandum ;
– (e) the amount of share capital with which the Producer Company is to be registered and
division thereof into shares of a fixed amount ;
– (f) the names, addresses and occupations of the subscribers being producers, who shall act as
the first directors in accordance with sub-section (2) of section 581J ;
– (g) that the liability of its members is limited ;
– (h) opposite to the subscriber's name the number of shares each subscriber takes : Provided
that no subscriber shall take less than one share ;
– (i) in case the objects of the Producer Company are not confined to one State, the States to
whose territories the objects extend.

12. ARTICLES OF ASSOCIATION (581G)
• The articles shall contain the following mutual assistance principles,
namely : -
– (a) the membership shall be voluntary and available, to all eligible persons
who, can participate or avail of the facilities or services of the Producer
Company, and are willing to accept the duties of membership ;
– (b) each Member shall have only a single vote irrespective of the share holding
;
– (c) the Producer Company shall be administered by a Board consisting of
persons elected or appointed as directors
– (d) save as provided in this Part, there shall be limited return on share capital ;
– (e) the surplus arising out of the operations of the Producer Company shall be
distributed in an equitable manner by : -
• (i) providing for the development of the business of the Producer Company ;
• (ii) providing for common facilities ; and
• (iii) distributing amongst the Members, as may be admissible in proportion to their
respective participation in the business ;

13. ..Contd
• The articles shall contain the following provisions, namely : -
– (a) the qualifications for membership,
– (b) the manner of ascertaining the patronage and voting right based on patronage ;
– (c) the manner of constitution of the Board, its powers and duties, the minimum and maximum number of directors,
manner of election and appointment of directors and retirement by rotation, qualifications for being elected or
continuance as such and the terms of office of the said directors, their powers and duties, conditions for election or co-
option of directors, method of removal of directors and the filling up of vacancies on the Board, and the manner and
the terms of appointment of the Chief Executive ;
– (d) the election of the Chairman, term of office of directors and the Chairman, manner of voting at the general or
special meetings of Members, procedure for voting, by directors at meetings of the Board, powers of the Chairman
and the circumstances under which the Chairman may exercise a casting vote ;
– (e) the circumstances under which, and the manner in which, the withheld price is to be determined and distributed ;
– (f) the manner of disbursement of patronage bonus in cash or by issue of equity shares, or both ;
– (g) the contribution to be shared and related matters
– (h) the matters relating to issue of bonus shares out of general reserves
– (i) the basis and manner of allotment of equity shares of the Producer Company in lieu of the whole or part of the sale
proceeds of produce or products supplied by the Members ;
– (j) the amount of reserves, sources from which funds may be raised, limitation on raising of funds, restriction on the
use of such funds and the extent of debt that may be contracted and the conditions thereof ;
– (k) the credit, loans or advances which may be granted to a Member and the conditions for the grant of the same ;
– (l) the right of any Member to obtain information relating to general business of the company ;
– (m) the basis and manner of distribution and disposal of funds available after meeting liabilities in the event of
dissolution or liquidation of the Producer Company ;
– (n) the authorisation for division, amalgamation, merger, creation of subsidiaries and the entering into joint ventures
and other matters connected therewith ;
– (o) laying of the memorandum and articles of the Producer Company before a special general meeting to be held
within ninety days of its registration ;
– (p) any other provision, which the Members may, by special resolution recommend to be included in articles.

14. Memorandum and Articles of
Association
• Memorandum and Articles of Association should be printed
• Get the Memorandum and Articles of Association duly
stamped, the Memorandum and Articles of Association
subscribed/signed by the requisite number of subscribers/
promoters, in his/her own hand, his/her father’s name,
occupation, address and the number of shares subscribed
for.
• Ensure that the Memorandum and Article is dated on a
date after the date of stamping.

15. Documents to be submitted to the
Registrar of companies .
• Copy of the letter of Registrar of Companies confirming the
availability of name for formation of the company ;
• Memorandum and Articles of Association duly stamped and signed;
• Form No INC-7 regarding application for incorporation of company
• Form DIR-12 regarding particulars of appointment of directors and
the key managerial personel and the changes among them.
• Form No INC-22 regarding notice of situation or change of situation
of registered office.

16. ..Contd
• Form No DIR-2– consent of the director
• Declaration of the farmer on Rs 20 stamp paper
• Form no .INC-10 regarding verification of
signature of subscribers
• Form No.INC-9 Affidavit
• Pan card and voter card of the subscriber.
• Letter to the registrar of companies for
appointment as first directors of producer
company

17. Certificate of incorporation
• The Registrar of the Companies will register
the memorandum, the articles and other
documents and issue a ‘certificate of
incorporation’ within thirty days, which is a
conclusive proof of its formation in terms of
Part IX A. [Section 581C (2)].

18. ….Contd
• The incorporation of Producer Company is
effective from the date mentioned in the
certificate .
• On incorporation, a company becomes a
juristic person. its members may come and go
but the company goes on till it is wound up.

19. ..Contd
• It has a common seal, which is affixed on all
the documents executed on behalf of the
company along with authorized signatory or
signatories.

20. Tasks to be completed after
incorporation .
• Open a Bank Account with minimum two
officially nominated signatories in the name of
the Company.
• Get PAN number from the Income Tax and TIN
number from the Commercial Tax Department to
carry out business.
• Establishment of company office.

21. Cost For Incorporation of a PC
Particulars Heads Amount
Digital signature Fees 9000(1800/director)
State Stamp duty Memorandum of
association
500
Power of Attorney 20
Article of association 1000
Registration/Filling Fees MOA(INC-7) 2500
AOA(INC-7) 500
INC-1(Name Availability) 1000
INC-22(register office) 300
DIR-12 300
Fees of CA/CS firm Consultancy fees 10000
Stamps papers Affidavits and declarations 300
Affidavit Expenses Fees Of notary 2000
Incidental Charges 8000
Total Approximate 35420

22. Annual Filling
Sr.No Document e-Form
1 Balance sheet Form 23AC to be filled by
all the companies
2 Profit & loss account Form 23ACA to be filled by
all companies
3 Annual Return Form 20 B to be filled by
companies having share
capital
4 Annual Return Form 21A to be filled by
companies without share
capital
5 Compliance Certificate Form 66 to be filled by
companies with paid up
capital between rs 10 lakh
to Rs.2 crore

23. Statutory Registers,Books etc.To
Be Maintained
• Register of members
• Share transfer register
• Documents creating any charge which
requires registration
• Register of charges
• Copies of annual returns and certificates and
documents required to be annexed thereto

24. …Contd
• Minute books of Board Meetings & General
Body Meetings.
• Register of dividend declared and remaining
unpaid
• Proper books of accounts for all transanctions

25. …Contd
• Register of Contracts, companies and firms in
which directors are interested
• Register for directors and shareholding
• Register of inter corporate loans and
investment
• Register of renewed and duplicated certificate

26. …Contd
• Register and index of beneficial owners.
• Register of particulars of investments of
producer companies

27. Period of Preservation of
Statutory/Records
S.NO Register/Record Period
1 Register and index of
members
Permanent
2 Books of accounts and
vouchers
8 years
3 Register of deposits 8 years from the year of
last entry
4 Annual returns and
certificate annexed thereto
8 years from the date of
last filling with roc
5 Any other statutory
register/record
8 years

28. Meetings
• Annual general meetings. Once in every
year(max of 15 months between two AGM)
• BOD Meetings: To be conducted minimum 4
times in a year.

29. THANK YOU