Benefits of Producer Company Registration

Separate Legal company: Because the Producer Company is a separate legal company, it is able to make purchases and incur obligations in its own name. The lenders of the corporation owe the directors nothing.

Investments and Loans: The government has passed a unique provision for lending money to the producer members since the producer company is made up of people or organisations that produce food or other goods for the first time. NABARD Bank was created specifically for this objective to offer producers and farmers financial support through NABARD Loan.

Tax advantages: Depending on the type of agriculture that a producer firm engages in, there are specific tax advantages and exemptions.

Limited liabilities: In accordance with the Companies Act of 2013, directors and shareholders are protected from certain types of liabilities. Therefore, the director's assets are secured and cannot be taken by banks or government agencies in the event that the firm experiences financial difficulties.

Deposits accepted: A registered producer company may accept deposits in the form of one-time or recurring deposits. The firm may also make lower-interest loans to its members and farmers.

Criteria

Even if their income does not go above the tax level, the following people are still allowed to pay their income tax return:

•  Individuals whose annual sales volume is at least Rs. 60 lakh.
•  Those who have a TDS or TCS of more than Rs 25,000.
•  Those with annual professional incomes of over Rs. 10 lakh.
•  A person is qualified to pay the ITR if they deposit at least 50 lakh in their savings bank account.

Process for Producer Company Registration

•  Step 1: Submit an application for a DSC (Digital Signature Certificate) Due to the fact that registering a producer company is entirely digital, a digital signature certificate is a necessary prerequisite. The certified agencies must receive an application for a DSC from the directors and subscribers to the company's memorandum. A DSC can be obtained completely online and in less than 24 hours. Three straightforward verifications—a document verification, a phone verification, and a video verification—are required for this process.
•  Step 2: Request for Name Approval Through the SPICE RUN form, which is a component of the SPICE+ form, the Producer Company can apply for a name. Industrial activity code as well as the object clause of the company must be defined while submitting the name application.
•  Step 3 is to submit the SPICE Form (INC-32) Following name approval, information on the company's registration must be written down in the SPICE+ form. It is a streamlined program for electronic firm incorporation. The information on the form is as follows: 1. Company information 2. Specifics regarding subscribers and members 3. Submit a request for a Director Identification Number (DIN). 4. Submission of PAN and TAN forms 5. Director and subscriber statements Declaration 6. Professional declaration and certification return.
•  Step 4: e-MoA and e-AoA filings (INC-33) and (INC-34) When submitting an application for company registration, related forms SPICE e-MoA and e-AoA must be created. Under section 2(56) of the Companies Act 2013, the term "Memorandum of Association" (MOA) is defined. It is the basis upon which the business is constructed. It outlines the company's charter, authority, and goals. According to Companies Act section 2(5), the Articles of Association (AOA) are defined. It outlines all the policies and guidelines pertaining to business management.
•  Step 5: Issuing the PAN, TAN, and certificate of incorporation The competent department will issue PAN, TAN, and Certificates of Incorporation upon Ministry of Corporate Affairs approval of the aforementioned documents. The corporation is now required to use these documents to create a current bank account. If you need help opening a new bank account, get in touch with us.

Documents for Producer company registration

The scanned copies of the documents required by the 2013 Companies Act must be submitted with the application for the registration of a Producer Company. These documents can be divided into three categories: those belonging to the members, those belonging to the company, and those belonging to the location where the business is being conducted. The table below lists a comprehensive collection of these documents.

•  1. Member portraits at passport size
•  2. A copy of each member's PAN card
•  3. A copy of your voter ID or Aadhar card
•  4. A recent bank statement (less than two months old)
• 5. Utility bills are a kind of proof of a registered business location.
•  6. The property owner's certificate of no objections

Recruitments for Producer Company Registration

Businesses interested in becoming Producer Companies must first meet the requirements outlined in Section 465 (1) of the 2013 Companies Act. These requirements relate to the company's name, address, capital, number of members and directors, and other details. The table below includes a comprehensive list of all such legally required requirements.

•  10 or more producers, or at least two producers institutions, must be members.
• Aadhar Card
•  5 minimum directors
•  a 5 lakh rupee minimum capital
•  a name that is distinctive and ends in "Producer Limited Company"
•  a registered address for the main office or business location