Producer Company Registration
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A Producer is any person engaged in any close-knit or related activity to the primary producers. Producing, harvesting, procurement, grading, pooling, handling, marketing, selling, exporting the primary producers of the members, or the imports of goods or services.
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Cognizant Advisors is an online business compliance platform that helps entrepreneurs and other individuals with various, registrations, tax filings, and other legal matters.
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Introduction
What is a Producer Company?
A producer company combines the best features of a cooperative society and a Private Limited Company, offering collective benefits to its member producers under a robust and definitive legal framework. Only business entities registered as Private Limited Companies are eligible for Producer Company registration in India. However, the names that these companies are incorporated with, shall end with the words “Producer Company Limited”. Individuals and institutions involved in Primary Production activities can come together and form a Producer Company in India.
Key decisions to be taken before starting a Producer Company?
- What would the proposed business activities be?
- What amount of capital must be invested?
- What benefits will be offered to the members?
- What should be the name of the company?
Benefits
Benefits of Producer Company Registration
Process
Producer Company Registration In 5 Easy Steps
Documents required
Documents Required for Incorporating a Public Limited Company
Passport-size coloured photograph
Proof of Identity
Specimen Signature of Directors
PAN Card
Proof of Registered
Proof of Producer activity
Faq
Frequently Asked Questions (FAQ)
Cognizant Advisors is the best to obtain on-time registration of Public Limited Company.
The minimum capital requirement to register a Producer Company is Rs 5 lakhs.
Producer Companies are companies that are directly or indirectly involved in the business of Primary Production. Broadly, such companies can be categorized into :
- Business involved in production, procurement, or manufacturing of Primary Produce
- Business involved in the marketing / promotion of primary produce
- Businesses involved in technical assistance to producers, like training and educating members or Research and Development activities
- Businesses that are exclusively financing primary production activities
- Businesses providing infrastructure support for primary business activities
Every Member shall, on the share capital contributed, receive only a limited return, and surplus if any, remaining after the payment of limited return, may be disbursed as patronage bonus, amongst the members, in proportion to their participation in the business of the Producer Company, either in cash or by way of allotment of equity shares, or both, as may be decided by the Members at the general meeting of members.
Yes, a Foreign National or NRI can become a Director in a Producer Company. The only requirement is to obtain DIN (Director Identification Number). However, a producer company must have at least one director who is a resident of India. The term “resident of India” denotes the person who has lived in India for at least 182 days in the last financial year.
There are five types of Producer Company prevalent in India, which are Production Businesses, Marketing Businesses, Technical Service Businesses, Financing Businesses, and Infrastructure Businesses.
One of the significant tax benefits to a producer company is that the agricultural income earned is fully exempt, as per section 10(1) of the Income Tax Act, 1961.
Yes, a producer company is a separate legal entity, i.e., distinct from its member. The only reason a producer company will cease to exist (other than winding up it voluntarily) is if the creditors/ court force its closure or the annual compliances are not met on time.
Yes, it is necessary for a Producer Company to add suffix “producer limited company” after the name of the company.
