Producer company|Registration Services|Companies act 1956
A producer company can be defined under the companies act 1956, which is involved in each and any one of these activities like farming, agricultural harvesting, pooling, marketing and exporting the primary produce. These companies are usually formed by the small businesses and small companies.
As agriculture is the backbone of Indian economy the popularity of producers company is increasing. Around 60% of the population depends on farming as a source of employment. But still, the farmers of this country face a lot of problems. So in order to address these problems the Government of India introduced the Producer companies in the companies act 1956 for the farm production company. Under this act a producer company can be formed by ten individuals or more, which should have the following objective-:
- Procurement
- Production
- Farming
- Harvesting
- Grading
- Polling
- Selling
- Marketing
What are the different types of producers company?
- Production business
- Marketing business
- Technical business
- Infrastructure business
Advantages of Producer company
Producer companies are exempted from the tax duties because they work for the agriculture and farming industry which is an integral part of the Indian economy
Separate legal entity, producer company is a legal entity which is established under the companies act.
Loans and advances against security as specified in articles, upon the condition of repayment within a period of 3 months and not more than 7 years.
The ownership of the firm can easily be transferred by easily transferring the shares of the firm.
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Procedure of Private limited company registration
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Digital Signature Certificate
The director of the firm should have a digital signature. The digital signature should be used by the file the registration, ROC compliance forms and the tax returns of the company. -
Director Identification Number
When the digital signature is approved you will get an email from Registrar of the company for your eligibility to be the director of the company. -
Name Reservation
After DIN allotment, the other vital step is to file a ‘name approval application’ to ROC on your company’s behalf. -
Final Incorporation and CIN
After name approval from the registrar of the company we will file the incorporation form with all supporting documents. The registrar of the companies takes 3 working days to complete the approval
Documents required for the Producer company registration
- PAN Card
PAN card of the directors, and shareholders. - ID Proof
Aadhar card, voter Id and driving license of a shareholder and director. - Address proof
Telephone bills, electricity bills, water bills and bank statements are also required for the private limited company registration. These documents must not be older than two months of the current data. - Scanned passport size photo of the director: Latest passport sized color photos of the director and shareholder.
- Registered office proof: Latest telephone bill, water bill and electricity bill of the registered office.
Frequently Asked Questions
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What is a producer company?
A producer company as defined under the Companies Act 2013, is the company having each or every one of the following activities as its objectives such as, production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit.
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What are the types of producer companies?
Types of producer companies in India:
- Production business
- Marketing business
- Technical service business
- Financing business
- Infrastructure business
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What are the documents required for the registration of a producer company?
Following documents are required for the registration of the producer companies:
- Identity proof of directors
- Address proof of directors
- Digital signature
- Passport size photograph
- Office address proof
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What are the advantages of a producer company?
The producer company has following advantages:
- Separate Legal entity
- Easy management
- Greater Credibility
- Limited Liability
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What are the disadvantages of a producer company?
The producer company has following disadvantages:
- High input prices
- Low cash flow
- No economies of scale
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What is the objective of producer company?
The producer company has the objective of production, handling, procurement, grading, pooling, handling, marketing, selling and export of primary produce of the members or import o goods or services for their benefit.
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What if a member of a producer company ceases to be the primary producer?
In case of the circumstances where the producer company ceases to be the primary producer, the Board of Directors shall surrender the shares when they have been satisfied that the condition in question has been met.
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What are the benefits available to producer company?
The producer company has the benefit under the Income Tax Act where the tax on agricultural income is exempted depending on the kind of agricultural activity carried on.
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What is the minimum number of directors required for the formation of producer company?
Every producer company shall have at least five and not more than fifteen directors However, under the special circumstance of inter-state co-operative society incorporated as a producer company, it can have more than fifteen directors.
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How many members are required to form a Producer company?
The following combination can form a Producer Company:
- Any ten or more individuals each of them being a producer
- Or any two or more Producer institutions
- Or combination of 10 or more individuals and producer institutions.