An Overview of Producer Company

The Companies Act, 2013 govern the Producer Company and are similar to a private limited company. As per the law, to form a producer company, one has to have ten or more
producers, i.e. people involved in or in some activities related to producing or growth, two or more producer companies, or an amalgamation of ten or more producers or producers companies.

The main objective of introducing a Producer Company is to help the farmers and agriculturist improve their living standards as well as to make sure that they are given support, profitability and incomes.

We at Taxrepair will help you keep up with the various requirements of registering a Producer company, and you will need the assistance of people with business expertise.

Documents Required for Registering a Producer Company

For Partners

• PAN Card scanned and self-attested copy (Mandatory)
• Scanned and self-attested copy (for ID Proof):
• Aadhar card
• Passport
• Voters ID
• Driving license
• Scanned and self-attested copy. (Not older than two months, preferably the latest one) (used for Address Proof):
• Latest bank statement
• Mobile or telephone bill
• Gas or electricity bill
• Passport size photograph
• Signature Specimen (signature in a blank document & only for directors)
• Passports if the partner is an NRI or foreign national. Relevant authorities should notaries the copy of the passport in the country of the NRI or the foreign national. Otherwise, they can get it notarized through the concerned officials at the Indian embassy of the country the partner resides.

For Registered Office

• Latest bank statement/mobile or telephone bill/ gas or electricity bill scanned and self-attested copy. (Not older than two months, preferably the latest one) (used for Address Proof)
• Notarised Rental Agreement scanned and self-attested copy.
• The latest No-objection Certificate (NOC) scanned copy from the property owner if the registered office is on leased or rented property.
• Scanned copy of sale deed or property deed; if the applicant owns the property of the registered office.

Benefits of Registering a Producer Company

Help in the Economies of Scale

With the formation of Producer Company, numerous farmers can work collectively, which has helped lower costs, reduced risk, and enabled better credit facilities. Furthermore, through these collective efforts, the farmers will be able to plan better and will also have
bargaining powers with their buyers.

reation Benefits

Although Income Tax Act does not indicate any particular tax benefits which provide special tax benefits or exemptions to the producer companies. But as the subject of the producer
company is an agricultural activity, they might be certain tax benefits and exemptions that the producer company can benefit from.

Easy Availability of Loans and Investments

Keeping the welfare of the farmers and producers in mind, the Government of India has ensured that these hard-working farmers get loans from NABARD to provide them with financial support. The primary purpose of offering the loan is to farmers for a limited time period that won’t exceed six months in order to meet the numerous needs of the producer
companies.

Better Management

The Management Board manages the producer company, having a tenure of five years, and work is distributed among the directors rather than one person managing the entire activity
of the entity. This help in better management of the entity as everyone has their area of expertise that helps in the smooth functioning of the entity.

Timelines for Registering the Producer Company