Producer Company Registration
- Register your One Person Company in 7 business days with our expert assistance.
- Our online company registration service includes the following features
- DIN and DSC for 5 directors
- Government Stamp duty
- Company PAN and TAN
- Drafting of MoA & AoA
- Company Incorporation Certificate
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One Person Company
Before the enactment of the Companies Act of 2013, the formation of a company in India necessitated at least two individuals. However, with the advent of this legislation, there’s a notable shift towards promoting One Person Companies (OPCs). The Companies Act of 2013 specifically facilitates the creation and operation of OPCs in India, allowing a single individual to spearhead such entities. While traditional private companies mandate a minimum of two directors and two members, a One Person Company is a departure from this norm, as it can be formed by a single person. The legal framework supporting OPCs in India is outlined in Section 262 of the Companies Act of 2013. The OPC Registration process requires the representation of the entire company by a lone director and a single member. Noteworthy is the streamlined compliance structure associated with OPCs, which imposes fewer responsibilities compared to traditional private companies. This legal provision offers a simplified avenue for individuals looking to establish and operate companies independently in India.
Features of One Person Company in India
Following are some important features of One Person Company in India:
1. Simple Succession:
Despite the fact that the company’s everyday operations are managed by a single person, OPC offers opportunities for eternal succession. Following the death of a company member, the nominee can administer the business.
2. Limitation of Liability:
A one-person company member has limited liability. Because OPC is a registered corporation, it is treated as a separate legal entity, providing its members with greater protection. Members’ liability is restricted to their shares, therefore they are not accountable for any losses incurred by the firm. In the event of bankruptcy, creditors may sue the corporation rather than the director for procuring the company’s debt.
3. Shareholder and sole directorship:
In a One Person Company, a single member serves as a director and is responsible for managing the company’s day-to-day operations. There is no need for an executive director to oversee daily operations in this situation. A single member is more than adequate and serves as a shareholder with full responsibility.
4. Ownership of Real Estate:
Because the OPC is considered a separate legal organisation, the individual has the ability to possess company property and other assets in their name. Other people cannot claim the properties, which include machinery factories, residential property, structures, and other assets. The OPC has the legal authority to acquire land directly in its name.
Here are some common main objects of a Producer Company:
1. Production, Procurement & Processing
- To engage in the production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary produce of its members.
- To process agricultural products including sorting, drying, milling, packing, and preservation to enhance market value.
2. Manufacturing & Value Addition
- To manufacture, distribute, and supply fertilizers, pesticides, seeds, animal feed, and other agricultural inputs.
- To establish food processing units, cold storage, warehouses, and packaging units for better price realization.
3. Marketing & Export of Produce
- To sell, distribute, and market agricultural produce and allied products of the members.
- To promote export of agricultural produce, processed goods, dairy, poultry, and other farm-related products in domestic and international markets.
4. Supply of Inputs & Equipment
- To procure and supply to members seeds, fertilizers, irrigation equipment, farm machinery, and other essential inputs at reasonable prices.
- To provide customized services such as soil testing, irrigation solutions, and farm consultancy services.
5. Financing & Credit Support
- To provide financial assistance, credit facilities, and loans to members for procurement of inputs, infrastructure development, and business expansion.
- To undertake insurance activities to protect members from financial risks related to agriculture, livestock, and natural calamities.
6. Research & Development (R&D)
- To conduct research & development activities for improving agricultural productivity and sustainability.
- To adopt modern farming techniques, organic farming, and precision agriculture for increased efficiency.
7. Education & Training for Farmers
- To organize training programs, skill development sessions, and capacity-building initiatives for producer members.
- To promote best agricultural practices, sustainable farming, and rural entrepreneurship.
8. Infrastructure Development
- To establish warehouses, logistics centers, transportation networks, and collection centers for smooth operations.
- To set up agro-processing units, dairy plants, fishery processing units, and renewable energy-based infrastructure.
9. Welfare & Sustainable Development
- To promote eco-friendly and organic farming to enhance environmental sustainability.
- To work for the social and economic welfare of producer members, ensuring fair pricing and better livelihood opportunities.
10. Collaboration & Partnerships
- To collaborate with government agencies, cooperatives, NGOs, research institutions, and private entities for the development of the producer community.
- To engage in joint ventures, farmer-producer groups, and contract farming arrangements for better market access.
Key Features of a Producer Company - Legal Structure: A Producer Company is registered as a Private Limited Company but operates under special provisions of the Companies Act, 2013, making it distinct from a regular Private Limited Company.
- Limited Liability: Producer Companies provide limited liability protection, meaning members’ liability is restricted to the extent of their shareholding.
- Membership Limit: Unlike a Private Limited Company, which typically has a maximum limit of 200 members, a Producer Company has no such restriction on the number of members.
- Conversion Restriction: A Producer Company cannot be converted into a Public Limited Company; however, it can be converted into a Multi-State Cooperative Society if required.
Following is the checklist for OPC Registration in India:
- Membership standards must be met at both the maximum and minimum levels
- Before incorporation, a nominee should be picked
- Form INC-3 should be used to request the nominee’s approval
- Proof of the One Person Company’s registered office
- Companies (Incorporation Rules) 2014 require that the OPC name be selected
- The minimum authorized capital of Rs. 1 Lakh
- Digital Signature Certificate for Potential Director
DOCUMENT REQUIRED
Address Proof: (Last 2 months of any one of the following document)
- Bank Statement
- Mobile Bill
- Electricity Bill
- Landline Bill
- Obtain DSC & DIN – Get Digital Signature Certificate (DSC) & Director Identification Number (DIN) for directors.
- Reserve Company Name – Apply for name approval through RUN (Reserve Unique Name) on the MCA portal.
- Draft MOA & AOA – Prepare Memorandum of Association (MOA) & Articles of Association (AOA) defining company objectives.
- File SPICe+ (INC-32) Form – Submit the incorporation application along with required documents to the MCA.
- PAN & TAN Application – Apply for the company’s Permanent Account Number (PAN) & Tax Deduction Account Number (TAN).
- Certificate of Incorporation (COI) – MCA issues the Certificate of Incorporation (COI) with Corporate Identification Number (CIN).
- Open a Bank Account – Use COI, PAN & other documents to open a Current Account for business transactions.
- Apply for GST (if required) – If turnover exceeds limits, register for GST using AGILE-PRO form.
- Compliance & Annual Filings – File Annual Returns (MGT-7A) & Financial Statements (AOC-4) with MCA.
- Obtain Additional Licenses (if needed) – Get FSSAI, APEDA, MSME, or other required licenses.
Key OPC compliance points:
- Financial Statements: Filing audited financial statements with the RoC annually.
- Annual Return: Filing Form MGT-7 to report the company’s activities and financial status.
- Income Tax Return: Filing individual income tax returns as per the company’s profits
- Statutory Audit: Mandatory annual audit of the company’s accounts
- Board Meetings: Conducting at least one board meeting in each half of the calendar year
- Register Maintenance: Keeping proper statutory records and registers updated
- Director Disclosure: Directors must disclose their interests in the company
- GST Compliance: Complying with Goods and Services Tax regulations if applicable based on turnover
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Frequently Asked Question
1. Who can form a Producer Company?
- 10 or more individual producers, or
- Two or more producer institutions, or
- A combination of both.
2. What are the benefits of registering a Producer Company?
- Limited liability for members.
- Separate legal entity status.
- Better access to government schemes and subsidies.
- Easier access to loans and financial assistance.
- Improved bargaining power in the market.
3. What is the minimum capital required for a Producer Company?
4. Can a Producer Company issue shares?
5. Can a Producer Company be converted into a Private or Public Limited Company?
6. What are the tax benefits available for Producer Companies?
- Tax benefits depend on the nature of activities.
- Income from agriculture-related activities may be tax-exempt under the Income Tax Act.
- It can also avail benefits under various government schemes.