Producer Company
Producer Company Registration
A Producer Company is a business entity registered under the Companies Act, 2013, designed specifically for farmers, agriculturalists, and rural producers. It enables primary producers to form a legally recognized business structure, ensuring better financial support, fair trade, and improved supply chain management. A Producer Company must have a minimum of 10 individual producers or 2 producer institutions and can function as a private limited company but with certain special provisions.
Compliances for a Producer Company
Annual ROC Filings – File MGT-7 & AOC-4 for annual financials.
Board Meetings & AGM – Conduct at least 4 board meetings & 1 Annual General Meeting (AGM) annually.
Statutory Audit – Financial statements must be audited by a registered Chartered Accountant.
Income Tax Filing – File annual ITR-6 with the Income Tax Department.
GST Registration & Filing – Mandatory if turnover exceeds the prescribed limit.
TDS Returns – File quarterly TDS returns for salary & payments.
Reserve Creation – Mandatory creation of a general reserve before distributing dividends.
Profit Sharing Compliance – Profits must be distributed among members as per legal provisions.
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LLPs must file TDS returns quarterly.
Advantages of Producer Company Registration
Limited Liability – Members’ liability is limited to their shareholding.
Better Financial Assistance – Can avail loans and grants from government & banks.
Collective Strength – Farmers and producers get better bargaining power.
Tax Benefits – Exemptions available for agricultural income.
Perpetual Succession – The company continues even if members change.
Access to Market & Investment – Producer Companies can engage in direct selling, processing, and exporting.
No Upper Limit on Members – Can expand membership as needed.
Documentation Required for Producer Company Registration
Director Identification Number (DIN) for Directors
Digital Signature Certificate (DSC) for Directors
PAN & Aadhar Card of Directors and Shareholders
Identity Proof (Passport, Voter ID, or Driving License) of Directors & Shareholders
Address Proof (Electricity Bill, Telephone Bill) of Registered Office
Memorandum of Association (MOA) & Articles of Association (AOA)
Declaration by Directors (INC-9 & DIR-2 forms)
Bank Statement for Financial Transactions
Proof of Share Capital Investment
No Objection Certificate (NOC) from Property Owner (if rented office space)
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Frequently Asked Questions (FAQs)
Who can register a Producer Company?
A minimum of 10 individual producers or 2 producer institutions can register a Producer Company.
Can a Producer Company be a Private Limited Company?
Yes, a Producer Company functions like a Private Limited Company but with special provisions for producers.
Is there any restriction on business activities for a Producer Company?
Yes, it must engage in activities related to agriculture, production, procurement, harvesting, processing, or selling primary produce.
What are the tax benefits for a Producer Company?
A Producer Company is eligible for tax exemptions on agricultural income and can avail subsidies from government schemes.
How long does it take to register a Producer Company?
The registration process typically takes 15-30 days, depending on approvals and documentation.