ABOUT PRODUCER COMPANY
Producer Company under Companies Act, 2013 mentioned under Section 465 (1). There are no separate provisions under the Companies Act, 2013 regarding Producer Company it still governs by chapter IXA of Companies Act, 1956.
A producer company is a hybrid between a private limited company and a cooperative society. The objective of the Producer Company is production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary production of the members or import of goods or services for their benefit, provided that the Producer Company may carry on any of the activities specified in this clause either by itself or through other institution.
Indian economy is basically an agrarian economy. More than two-thirds of the Indian population depends upon agriculture for their livelihood. The Indian Income Tax Act, 1961 specifically exempts tax on agricultural income under section 10(1). However, the exemption for such agricultural income shall sometimes vary depending upon the kind of agricultural activity carried on. 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.
Dispute relating to producers companies are to be settled by conciliation or arbitration under the Arbitration and Conciliation Act, 1996 as if the parties to the dispute have consented in writing to such procedure.
SEPARATE LEGAL ENTITY
A Producer Company is a separate legal entity as distinct from its members, Therefore, the company has legal capacity and can own property and also incur debts. The members (Directors) of a producer company have limited liability.
- Minimum 5 directors.
- No minimum capital requirement, you may start with 10000/- capital also.
- Minimum 10 Person having farmer certificate.
DOCUMENTS REQUIRED FOR REGISTRATION
IDENTITY AND ADDRESS PROOF
Aadhar Card, Aadhar number is now a necessity for applying for any registration in India. Also, income tax return can only be filed if the person has linked his PAN card with Aadhar number.
Address proof will be required for all directors and shareholders of the company to be incorporated. For Indian nationals, PAN is mandatory. For foreign nationals, apostilled or notarised copy of passport must be mandatorily submitted. Residence proof documents like bank statement or electricity bill should not be more than 2 months old.
All documents submitted must be valid
REGISTERED OFFICE PROOF
- Register office of all companies must be in India .If it is a Rented Property, Rent agreement and NOC from a landlord. If it is a Self-owned Property, Electricity bill or any other address proof.
- Documents submitted must be valid and not more than 2 month old.
A minimum capital of Rs.500,000 is required to incorporate a producer company.
There should be minimum 5 and maximum 15 directors are in producer company.
A Digital Signature Certificate, or DSC, is issued by six certifying authorities in India (such as e-Mudhra and n-Code). It is nothing but an electronic version of a physical signature. It can be used to verify documents in the company registration process.
It can never be converted into a public company however it can be converted into a multi-state co-operative society.
Any 10 or more producers (Individuals) can join together to form a production company but there is no upper limit on the number of members.