Producer Company Registration

The procedure to incorporate a producer company is as follows –

• The first step is to obtain digital signature certificate (DSC) of all the directors.
• After obtaining DSC, the second step is to obtain the DIN (Director Identification number). You have to fill form DIR-3 along with a self-attested photo identity proof & address proof.
• In the third step, you have to finalize the name of the producer company by filling form INC-1 to the registrar of companies (ROC). You need to give 6 names as per order of your preference in form INC-1 along with its significance. The name of the company must ends with the word “Producer Company”.
• After getting the name approval from registrar of companies (ROC), you need to submit the following documents –
  • MOA (Memorandum of Association)
  • AOA (Articles of Association)
  • Filling of form INC-8 i.e. Declaration by a professional
  • To declare their legal competency to act as subscribers, all subscribers of the proposed company has to sign an affidavit.
  • NOC & utility bill from the house owner whose address is used as registered office address by the company. In case it is not owned, you have to attach lease agreement with the form.
  • Filling of form DIR-2 and details in DIR-8
• In the last and the final step, all the documents will be attached to form INC-7, INC-22 & DIR-12 and uploaded on ROC website. After verifying all the documents, ROC will issue an incorporation certificate and company can easily start its business operations.

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.