#ProducerCompanyRegistration #ProducerCompany #Corpbiz
Meaning of Producer Company
“Producer Company” means a body corporate having objects or activities specified in section 581B and registered as Producer Company under the Companies Act, 1956.
Objects of a Producer Company Relates to Procurement, #Production, Harvesting, Grading, Pooling, #Handling, #Marketing, #Selling, or Export of Agricultural Produce.
The main objective of the producer company is to facilitate the formation of co-operative business as companies and to make it possible to convert existing co-operative business into #companies.
Pre Incorporation Requirements
Minimum 10 Members
Minimum 5 Directors
No Limit on Maximum Number of Members
Can only Possess Equity Share Capital
All members should be primary producer
Other Requirements
Only a person or member engaged in activities related to the production of primary produce can participate in the ownership of the company.
The liabilities of the producer company members are limited to the amount of their unpaid share
The name of the proposed company must contain “Producer Company Limited” at the end of their name.
The proposed Producer Company is deemed as the private limited company as per the provisions of the #CompaniesAct.
Registration Procedure
Obtain DSC
Obtain DIN
Name of the Company
Preparation of MOA and AOA
Incorporation Application
Documents Requirements
PAN Card
Aadhar Card
Farmer ID Proof
Farmer Certificate
Registered Office address proof ( Utility Bill )
Benefits of Producer Company
Government Support Via Various Schemes for Farmers
NABARD Support in Credit Facilities
The members of the producer company will be entitled to get bonus shares in the same proportion to the shares held by them.
The surplus (after providing provision for payment of limited return and reserves) may be given as patronage bonus* to the members of the producer company.
Loans and Investments
As mentioned above the Producer Company consists of individuals who are primary producers, and thus, are in need of #financial support from time to time. Hence, a special provision under the companies acts 1956 was passed for giving loans to producer members. A #ProducerCompany can provide financial assistance to its members through:-
Credit facility: This is available to any member for a period not exceeding six months (such facility must be in connection with the #business of the Company).
Loans and advances: These are provided to the producer member against security, repayable within a period not exceeding seven years from the date of disbursement of such loans or advances.
NABARD Loan: NABARD provides support and financial assistance to meet the needs of Producer Companies.
Tax Benefit (Taxability of Producer Company)
The Income Tax Act, 1961 under section 10(1) exempts agricultural income. However, the exemption provided under section 10(1) for the agricultural income sometimes vary on the basis of the agricultural activity carried out.
The Income Tax Act does not specify any specific tax benefit which essentially provides special tax benefits or exemptions to producer companies by its definition. But subject to the agricultural activity carried out by the producer company, certain #taxbenefits and exemption can be availed.
For Producer Company Registration visit - corpbiz.io/pro...
Phone:- 9121230280
Email:- info@corpbiz.io
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15 окт 2024
