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What is Producer Company Registration
The objects of the Producer Company in India as defined in the companies act 1956,shall relate to all or any of the following: -
- production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit.
- processing including preserving, drying, distilling, brewing, vinting, canning and packaging of 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, revitalisation 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
Process of Nidhi Company Registration?
Get DSC(Digital Signature Certificate) and DIN(Director Identification Number DIR 3 form) for the directors of the company which is issued by the MCA(Ministry of Corporate Affairs) by providing information through simple form on LegalDocs.
Approval of Name of the company(Form no. INC 1): Prior to approval of the name, a company name must be reserved with the MCA so that no one else can use it and it doesn’t match with existing companies.This process will be handled by LegalDocs.
Registration i.e. incorporation of company through form number INC 7,8,10,9,22,DIR 12,2 at MCA with documents with the registrar of companies will be taken care by us after above mentioned processes.
Documents required for Producer Company Registration
- Identity proof of the director(PAN Card,Aadhar Card)
- Address proof
- Passport size photographs of directors
- Copy of rent agreement if any
- Electricity Bill
- Property papers if any
Current Account Opening
A current account is a type of deposit account that helps the professionals and businessmen to run their business. Businessmen can avail various benefits by Online Current Account such as:
- Unlimited transactions
- Customized features
- Online banking services
Online current account reduces the hassle and provides the benefit to complete the banking process anytime and anywhere.
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- Zero Balance Current Account
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- Free Current Account Powered by ICICI Bank
Necessary conditions for producer company
- 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
- Minimum 5 and maximum 15 directors
- Minimum capital of Rs.5,00,000/-
Benefits of Producer Company Registration
- Unlike a private limited company, a producer company in India can have unlimited number of members.
- Registrar of companies have jurisdiction over the matters of amalgamation,merger or division of a producer company while in case of private limited company court has the jurisdiction
- It can never be converted into a public company however it can be converted into a multi-state co-operative society.
- A producer company enjoys a separate legal entity, and offers the facilities of limited liability and perpetuity.
- Producer companies offer greater credibility as compared to that offered by unregistered organizations of agriculturists/farmers.
- Changes in the Board of Management of a producer company can swiftly be made just through filing few simple forms with the ROC concerned.
- Only a duly registered producer company is entitled to sell or own a property in its own name.
- A registered producer company is fully entitled to accept deposits from or give loans to its agriculturist members, at reasonable rates of interest.
- It is to be noted that though the IT Act does not per-se give any special benefits or exemptions to Producer Companies as such, but depending upon the kind of agricultural activity it carries on, certain tax benefits can be availed. For instance, if green tea leaves are grown and sold directly without any further processing, the income derived from such an activity is considered as agricultural income under the IT Act and such income is 100 % tax free, but if the green tea leaves are further processed and tea is manufactured only 60% of the income derived from such an activity is considered as agricultural income and the tax exemption can be availed only on the said 60% of such income. Thus, it is clear that the tax exemption to a producer company depends upon the activity it carries on.