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Updated on 25 Oct 2021 9.00 AM IST | 4 min read
Producer Company Registration in India
A producer company is a legally recognized body of farmers/agriculturists, concept made by government of India with the main purpose to improve their standard of living by ensuring them to give available support, income and profitability.
Under companies act, 1956, a producer company can be formed by –
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Authorized Activities of Producer Company
The producer company deals with the production done by its members and is authorized to carry on any of the following activities –
- Processing of the production done by its members. Processing includes preserving, brewing, vinting, drying, distilling, canning and packaging.
- Manufacturing & sale of machinery, equipment or consumable to its producer members.
- Providing education on the mutual assistance principle to the members of the producer company as well as others.
- Rendering consulting services, technical services, training, research & development and other needed activities to promote the interest of producer members.
- Generation, transmission and distribution of power, revitalization of land and water resources, conservation and communication etc.
- Insurance of the first production & its producer.
- Promotion of techniques of mutuality and mutual assistance.
- Welfare of members of the producer company as decided by the board.
- Providing financial assistance to its producer members such as financing of marketing, procurement, processing or other activities such as extending of credit facilities.
Minimum Requirements for Producer Company Registration in India
The minimum requirements for the registration of a producer company are as follows –
Documents Required For Producer Company Registration
Process of Producer Company Registration
The procedure to incorporate a producer company is as follows –
Advantages of Producer Company Registration in India
The main advantages of a producer company registration are –
A producer company has a separate legal entity. It offers the benefit of limited liability and perpetuity. Therefore, the members of a producer company have no liability towards the creditors of a producer company.
Producer Company offers greater credibility in comparison to that offered by unregistered organization of agriculturists/farmers. They are registered and monitored by the central government whereas producer organizations are monitored by state governments.
The changes in board of management of a producer company can easily be made by just filling few simple forms with the ROC.
A duly registered producer company is only entitled to sell or own a property in its own name.
A producer company is fully entitled to accept deposits from its producer members and give loans to its producer members at reasonable rate of interest.
A producer company offers a benefit of perpetual succession. It has a continuous run or uninterrupted existence until it is legally dissolved.
Tax Benefit on Producer Company Registration
According to income tax act, 1961, agricultural income is exempted under section 10(1). The exemption provided under section 10(1) may vary sometimes depending upon the basis of agricultural activity. You can avail certain tax benefits or exemptions on the agricultural activity carried out by a producer company. For ex – Income from selling the grown green tea leaves comes under agricultural income and it is 100% tax free but if tea leaves will go further for processing for tea manufacturing. 60% of income is considered as agricultural income & 40% of such income will be taxable.
How Finacbooks help in Producer Company Registration?
Finacbooks is a leading Indian portal providing accounting, finance & taxation services to small businesses. We are having more than 10 years of experience in helping individuals providing Producer Company registration at a least possible price. We will guide you through the entire process of Producer Company registration. To avail the best deals on Producer Company registration, kindly call us at 8800221252 or you can also e-mail us at firstname.lastname@example.org
Producer Company Registration FAQ's
- 10 or more individuals
- 2 or more institutions
- Combination of 10 or more individuals and 2 or more institutions
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