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PRODUCER COMPANY

5 Simple Steps


 

About

A Producer Company is a coporate body dealing with any one of these agricultural produces or post-harvesting activities - Harvesting, Procurement, Grading, Handling, Pooling, Selling, Marketing or Export of primary produce of members or Import of goods and services for their benefit. A Producer Company can be formed by 10 individuals (or more) or 2 institutions (or more) or by a combination of both (10 individuals and 2 institutions).

A producer company can be defined as a legally recognized body of farmers/ agriculturists with the aim to improve the standard of their living, and ensure a good status of their available support, incomes and profitability. The main objective of the producer company is to facilitate the formation of co-operative business as companies and to make it possible to convert existing co-operative business into companies.

Over 85% of the Farmers in India are small and marginal farmers with land holdings of less than 2 hectares. This fragmentation in farmers and farm lands, leads to disorganization and it is not viable for Indian farmers to adopt the latest technologies. By organization of these farmers into producer companies, economies of scale can be unlocked and the livelihood of farmers can be improved. Thus the concept of Producer Company is aimed at empowering farmers by creating clusters of farmers organized as a Producer Company.

Benefits

• Members will initially receive only such value for the produce or products pooled and supplied as the directors may determine. The withheld amount may be disbursed later either in cash or in kind or by allotment of equity shares.
• Members will be eligible to receive bonus shares.
• There is a provision is for the distribution of patronage bonus (akin to dividend) after the annual accounts are approved — patronage bonus means payment out of surplus income to members in proportion to their respective patronage (not shareholding).
Producer Companies shall carry out an internal audit of its accounts, at regular intervals in accordance with its articles of association and such an audit shall be carried on by a Chartered Accountant. In addition to the internal audit, the auditor shall make an annual audit report to the members of the company on the accounts examined by him, and on every balance sheet and profit and loss account and on every other document declared by the Act to be part of or annexed to the balance sheet or profit and loss account, which are laid before the company in general meeting and the report shall state whether, in his opinion and to the best of his information and according to the explanations given to him, the said accounts give the information required by the Act in the manner so required and give a true and fair view.
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(“the IT Act”) specifically exempts tax on agricultural income. 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. For instance, if green tea leaves are grown and sold directly without any further processing, the income derived from such an activity is considered as agricultural income under the IT Act and such income is 100 % tax free, but if the green tea leaves are further processed and tea is manufactured only 60% of the income derived from such an activity is considered as agricultural income and the tax exemption can be availed only on the said 60% of such income. Thus, it is clear that the tax exemption to a producer company depends upon the activity it carries on

Documents Required

Individual / Director

Pan Card

Aadhar card/ Voter ID/ Passport/ Driving License of the Director

Latest Bank Statement (should not be older than two months)

Latest Passport Size Photograph

For the Registered Office

Copy of Property Paper (if self owned Property)

NOC (if Parents owned Property)

Electricity Bill (should not be older than two months)

Rent Agreement

Package Includes

Basic

29999

all inclusive fees

2 Digital Signatures (2 Class )

2 DIN

Name Approval

MOA/AOA (Soft Copy)

Copy of Certificate of incorporation

Pan & Tan

Capital 5 to 10 lakh

Includes Government Fees

Excludes Stamp Duty and Forign National

MSME Registration Certificate

21 Useful Legal Agreements/ letters Template

Sample Invoice( GST)

Resolution for Opening a Bank Account

Gold

49999

all inclusive fees

2 Digital Signatures (2 Class )

2 DIN

Name Approval

MOA/AOA (Soft Copy)

Copy of Certificate of incorporation

Pan & Tan

Capital 5 to 10 lakh

Includes Government Fees

Excludes Stamp Duty and Forign National

Income Tax Return Filing

GST Registration

Annual Report

Directors Report

Board Resolution Preparation

MCA Annual Return Filing

One Time Consultation

MSME Registration Certificate

21 Useful Legal Agreements/ letters Template

Sample Invoice( GST)

Resolution for Opening a Bank Account

Dimoand

64999

all inclusive fees

2 Digital Signatures (2 Class )

2 DIN

Name Approval

MOA/AOA (Soft Copy)

Copy of Certificate of incorporation

Pan & Tan

Capital 5 to 10 lakh

Includes Government Fees

Excludes Stamp Duty and Forign National

Income Tax Return Filing

GST Registration

Annual Report

Directors Report

Board Resolution Preparation

MCA Annual Return Filing

12 GST Return Filing (GSTR-3B or GSTR-1) upto 100 transction per month

4 Tds Returns up to 50 transaction per return

60 Min CA Consultation

MSME Registration Certificate

21 Useful Legal Agreements/ letters Template

Sample Invoice( GST)

Resolution for Opening a Bank Account

Customize

0

Make a Package according to your specifications at a very reasonable price

Submit your Reqiurment

How long will it take?

DSC

1 Working Day

DIN

1 Working Day

Name Approval

Approx 5 Working Days

Incorporation Documents

Approx 8-13 Working Days

Frequently Asked Question

Nidhi" is a Hindi word, which means finance or fund. Nidhi Company means a company which has been incorporated with the object of developing the habit of thrift and reserve funds amongst its members and also receiving deposits and lending to its members only for their mutual benefit.
Minimum 7 Shareholders and 3 Directors are required to form a Nidhi Company.
5 Lacs is the minimum paid up capital required to form a Nidhi Company.
Only members of the Nidhi Company can deposit, lend and borrow the funds.
Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. Certificates serve as proof of identity of an individual for a certain purpose; for example, a driver's license identifies someone who can legally drive in a particular country. Likewise, a digital certificate can be presented electronically to prove one's identity, to access information or services on the Internet or to sign certain documents digitally. DSC or Digital Signature is a physical signature in an electronic format. Digital Signatures are used in India for online transactions such as Filing Annual Return, Company or LLP Incorporation, Income Tax E-Filing, E-Tenders, etc. The different types of Digital Signature Certificates are: Class 2: Here, the identity of a person is verified against a trusted, pre-verified database. Class 3: This is the highest level where the person needs to present himself or herself in front of a Registration Authority (RA) and prove his/ her identity.
DIN is the acronym for Director Identification Number issued to any person who has applied to the Ministry of Corporate Affairs and is a pre requisite to be appointed as a Director of any private or public limited company.
Minimum 3 Directors need DIN (Director Identification Number) to form a Nidhi Company.
Within 6 Months of Incorporation, Nidhi Company shall have minimum of 200 members.
A Nidhi Company cannot give any unsecured loan or a micro finance loans.
No, a Nidhi Company cannot provide any vehicle loans
Yes, the name must have Nidhi Limited in it.
This is one of the most important aspects of the Nidhi Company working. Because Nidhi can earn only through loans, hence the maximum is can earn it 7.5 + maximum rate offered on Deposits.

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