Producer Company Registration
Producer Company Registration is mainly done under the Companies Act, 2013, with the main object of production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary produce of the Members or import of goods or services for their benefit. Produce are things that have been produced or grown, especially by farming. Therefore, a Producer Company deals primarily with agriculture and post-harvest processing activities.
Producer Company Registration requires ten or more producers (individuals); or two or more producer institutions; or combination thereof. The members have necessarily to be primary producers.
Over 85% of the Farmers in India are small and marginal farmers with landholdings of less than 2 hectares. This fragmentation in farmers and farmlands leads to disorganization and it is not viable for Indian farmers to adopt the latest technologies. By the organization of these farmers into producer companies, economies of scale can be unlocked and the livelihood of farmers can be improved. Thus the concept of Producer Company Registration is aimed at empowering farmers by creating clusters of farmers organized as a Producer Company.
1. PRODUCER COMPANY INCORPORATION :
- Obtain DSC for all directors and shareholders for signing the electronic documents.
- Obtain DIN for all directors.
- Make an application for the approval of Name of the Company through the RUN service on the MCA portal along with fees.
- On the reservation of Name of Producer Company, make an application for incorporation of a company in SPICe Form along with necessary documents.
- Registrar issue certificate of incorporation after considering the form and necessary documents.
- PAN Card/ Passport/ Election ID Card of all the directors and shareholders.
- The latest Bank Statement is not older than 2 months.
- Voter’s ID/Driver’s License/passport of all the directors and shareholders.
- Passport-sized photographs of all directors and shareholders.
- Copy of any Utility bill as residential proof.
- In case of the rented property a scanned copy of Rent agreement along with NOC from the owner.
In the case of owned property, a copy of Property Papers.
- A minimum number of 5 directors (maximum 15 directors) and 10 members should be there.
- The Producer Company registration in India cannot be deemed as a public company.
- There should be at least four boards meeting every year and the meetings should not be held less than once every three months.
- A minimum capital of Rs. 500,000 is required to incorporate a producer company.
- Separate Legal Entity
- Uninterrupted Existence
- Better Credibility
- Easy Management
- Owning Property
- Limited Liability
- Production, harvesting, procurement, grading, pooling, handling, marketing, selling, the export of primary produce of the Members or import of goods or services for their benefit. Provided that the Producer Company may carry on any of the activities specified in this clause either by itself or through other institution;
- Processing including preserving, drying, distilling, brewing, venting, canning, and packaging of the produce of its Members;
- Manufacture, sale or supply of machinery, equipment or consumables mainly to its Members.
- Providing education on the mutual assistance principles to its members and others.
- Rendering technical services, consultancy services, training, research and development, and all other activities for the promotion of the interests of its members.
- Generation, transmission, and distribution of power, revitalization of land and water resources, their use, conservation, and communications relatable to primary produce.
- Insurance of producers or their primary produce.
- Promoting techniques of mutuality and mutual assistance.
- Welfare measures or facilities for the benefit of members as may be decided by the Board.
- Any other activity, ancillary or incidental to any of the activities referred to in clauses (a) to (i) or other activities which may promote the principles of mutuality and mutual assistance amongst the members in any other manner.
Financing of procurement, processing, marketing or other activities specified in clauses (a) to (j) which include extending credit facilities or any other financial services to its Members.
- Members of the producer company get the bonus shares in the same proportion to the shares held by them.
- Every member of the Company will receive a value for the product or products pooled and supplied as determined by the Director. The amount will be distributed in cash or by allotment of equity shares. This may be subject to the conditions of the Board.
- Members of Producer Company are also eligible to get financial assistance by way of credit facility for a period not exceeding 6 months.
- The additional amount that may be remaining (after providing provision for payment of limited return and reserves) may be distributed as patronage bonus to the members of the producer company. This will be in proportion to their participation in business activities either in cash or through equity shares.
Following registered persons not required to file GSTR 1, 2 and 3 such as:
Goods and Services Tax (GST) is an indirect tax applicable on the supply of goods and services. It is a comprehensive, multistage, destination based tax. It has subsumed almost all the indirect taxes except a few state taxes. It is collected from point of consumption and not point of origin like previous taxes.
Documents attach in trademark application:-
A trademark can be registered by the Controller General of Patents Designs and Trademarks, Ministry of Commerce and Industry, Government of India under Trademark Act, 1999 to protect the identity of any goods and services.
Some basic information about Income tax
An income tax is a tax imposed on individuals or entities commonly known as taxpayers that varies with respective income or profits. Income tax generally is computed on taxable income which is calculated after various deductions. Taxation rates may vary by type or characteristics of the taxpayer.
1.What is producer company?
Producer company means a company registered under companies act, 2013. Producer Company allows farmers, cooperatives to function as a corporate entity under the Ministry of Corporate Act. A Producer Company deals primarily with agriculture and post-harvest processing activities.
2.Tax benefits for producer company?
According to section 10(1) of Income Tax Act, 1961 exempts the agriculture income. However the Income Tax Act, 1961specifically not specify any specific tax benefit which essentially provides special tax benefits or exemptions to producer companies. But producer company carry agriculture activity, so certain tax benefits and exemptions can be availed
3.What is the Annual Compliances for Producer Company?
- Producer Company shall hold atleast four board meeting in a year. Board shall meet atleast once in three months by giving seven days advance notice. The gap between two meeting shall not be more than 3 months.
- Every producer company shall hold Annual General Meeting in every financial year. The gap between two AGM shall not be more than fifteen Months. The AGM shall be called by issuing at least 14 days’ notice.
- Every producer company shall hold their first AGM within 90 days from the date of its incorporation.
- File their financial statements in form AOC-4 within 30 days of holding Annual General Meeting.
- File their Annual Return in Form MGT-7 within 60 days of holding Annual General Meeting.
- Every producer company shall have Internal Audit of its accounts.