Producer Company Registration

What is a Producer Company?

Under the Companies Act, 2013, a Producer Company was introduced, which provides an opportunity to the individuals engaged in producing activities (particularly by farming) to form a company.

Moreover, a producer company is a corporate entity whose objectives/activities are described in Section 518B.

Does a Producer Company Receive Tax Benefits?

Under Section 10(1) of the Income Tax Act, agricultural incomes are not subject to pay tax, yet, sometimes the exemptions are present, depending on the execution of the farming activities.

Moreover, its definition does not define any particular unique tax benefit or exemptions that a producer company avails. However, concerning agricultural activities that the producer company executes, certain tax benefits and exemptions can be availed.

For instance, under the Income Tax Act, income generated from selling the grown tea leaves is counted as agricultural income and is completely tax-free. On the contrary, if the same tea leaves are processed for manufacturing, then 60% of the income from such activity will be considered agriculture income. However, 40% will be taxed.

Thus, the tax benefit and exemption depending on the activities of a producer company.

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Benefits of Producer Company

Limited Liability

The members of the producer company have limited liability which means that the personal property of its members would be safe, unlike a sole proprietorship where the business owner is liable to pay all the debts and liabilities.

Appropriate Management

Unlike a sole proprietorship, a producer company ensures appropriate company management as the entire business and work are divided into directors.

Separate Legal Existence

A separate legal entity is an organization that continues to exist despite the death, bankruptcy, egress, etc., of the members of the society.

Economies of Scale

A producer company provides an opportunity to the farmers to work collectively and at a lower cost and minimize the risk. Also, it provides access to appropriate credit facilities.

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Types of Producer Companies

1. Production Business

Production business engages in manufacturing, production, or procurement of the primary output for the members of the producer company for further sale.

2. Infrastructure Business

It is the businesses that are engaged in providing infrastructure to their members. It could be in the form of water resources, electricity, land utilization, irrigation techniques, or consultation concerning the same.

3. Marketing Business

A business that engages in marketing and promotional activities of primary produce or provision of educational services to its members and others can establish a producer company.

4. Financing Business

Any business involved in the producer’s financing activities, whether in production, development, or marketing, can form a producer company.

5. Technical Business

A business provides technical help to producers and provides training and educational services; conducting research and development can form a producer company.

Objectives of a Producer Company

Should encourage mutuality and mutual assistance techniques.

It provides benefits of production, procurement, harvesting, grading, pooling, marketing, handling, selling, export of primary produce of its members, and importing goods and services.

Should provide the training on principles of mutual assistance to its members.

The manufacturing, sale, or supply using the machinery, equipment, or consumables should chiefly go to its members.

Checklist For Producer Company Registration Online

Below-mentioned are the requirements for the producer company incorporation procedure,

Minimum 5 directors are required, and the maximum number of directors could be 15 in a producer company.

A combination of any ten and more individuals (producers) can form a producer company. Again, though, there is no restriction on the maximum limit of the members.

The Minimum paid-up capital of the limited producer company should be Rs 5 lakh.

“Producer Limited Company” should be included at the end of the name of the limited producer company.

Every member has a single vote regardless of their shareholding or financing.

A producer company should never convert to a public company, yet, it can be converted into a multistate cooperative society.

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Producer Company Registration | Producer Company Registration Online Documents

Submit the replica of your Voter ID card, Driving license, Passport, etc.

For foreigners and NRIs, submit the photocopy of the PAN card and Passport.

For address proof, you are required to submit the photocopy of the electricity bill, telephone bill, gas bill, latest bank statement, etc.

Passport size photograph.

A specimen signature of directors (blank sheets comprising signature of directors).

If company premises are rented, you must submit the notarised rental agreement and NOC from the owner.

If the property is owned, you need to submit a sale deed or property deed replica.

We understand that documenation is major part of the farmer producer company registration, any minor inaccuracy in the document submission and producer company incorporation procedure could delay the registration process.

We - at JR Compliance - a Delhi based award winning compliance service provider cares for clients, which is why we are equipped with resources and experts to complete the producer company incorporation procedure and its documentation.

Producer Company Incorporation Procedure | Producer Company Registration Process

According to Section 581B, you require ten or more people to register a producer company. Therefore, each member should be the producer/any two or above Producer institutions/a meld of 10 and above people and Producer institutions with the aspiration to form a producer company.

If not the condition as mentioned above, the provision of the said Act concerning registration might establish an incorporated company as a Producer Company under this Act.

Further, the required documents needs to be submitted.

If the registrar is satisfied by fulfilling all the requirements mentioned in the Act, the certificate of incorporation will be received within 30 days of document submission.

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Note- If you register under sub-section (1), the Producer Company will become a corporate body as a private limited company that must comply with the provisions mentioned in this part of the Act. In contrast, there would be no restrictions on the number of members. Therefore, under any situation whatsoever, a Producer Company becomes or considers to become a private limited company under this Act.

The producer company incorporation procedure is perplexing and tedious, yet, necessary to form a producer company. Thus, a producer company registration consultants would be of great help for your convenience and to guide you throughout the producer company incorporation procedure or to appropriately submit the documents for farmer producer company registration.

Consequently, JR Compliance with the experience of 8+ years guarantees to provide you prompt services while ensuring high-standard services. Our services have been exemplary, which is evident because we have provided our professional assistance to highly reputed brands such as Milton, Samsung, Newline, etc.

Therefore, our services are apt and nonpareil.

Our Role in Farmer Producer Company Registration

We will educate you regarding producer company registration process.

Our Producer Company Registration consultants will provide you with complete assistance in the producer company incorporation procedure.

Our expert team will assist you in the process of documentation.

We will provide you with complete clarity regarding the process to set real genuine expectations.

Our consultants will be just a call away to provide you with the most satisfactory solution in case of any query.

We will directly coordinate with the officials for a smooth procedure.

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Conclusion

At JR Compliance, you will not receive a service but we will provide you with an experience of how our expert team works promptly to help you acquire the producer company registration while ensuring your complete convenience.

We understand that producer company incorporation procedure can be tedious and perplexing even for a well educated farmer. Thus, having an experienced and knowledgeable team to assist you throughout the farmer producer company registration will make the process unchallenging because you will be receiving high-standard assistance from us.

Hence, for expert and professional farmer producer company registration services, contact us immediately.

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What is a Producer Company?

Does a Producer Company Receive Tax Benefits?

Get Free Expert Consultation!

Benefits of Producer Company

Types of Producer Companies

1. Production Business

2. Infrastructure Business

3. Marketing Business

4. Financing Business

5. Technical Business

Objectives of a Producer Company

Checklist For Producer Company Registration Online

Producer Company Registration | Producer Company Registration Online Documents

Producer Company Incorporation Procedure | Producer Company Registration Process

Our Role in Farmer Producer Company Registration

Conclusion

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Producer Company Registration

What is a Producer Company?

Does a Producer Company Receive Tax Benefits?

Get Free Expert Consultation!

Benefits of Producer Company

Types of Producer Companies

1. Production Business

2. Infrastructure Business

3. Marketing Business

4. Financing Business

5. Technical Business

Objectives of a Producer Company

Checklist For Producer Company Registration Online

Producer Company Registration | Producer Company Registration Online Documents

Producer Company Incorporation Procedure | Producer Company Registration Process

Our Role in Farmer Producer Company Registration

Conclusion

Get Your Free Consultation!

Mother Promise we won't spam you.

Our professionals are just a click away !

Get All Compliance Services under One Roof

Trusted By :