The first auditor offers producer business registration in Chennai, Tamil Nadu. We are the top advisors for producer company registration in Chennai, Tamil Nadu. In Coimbatore, Madurai, Tirupur, Trichy, Thanjavur, Dindigul, Erode, Salem, Namakkal, Karur, hosur, tuticorin, krishnagiri, Cuddalore, Kanyakumari, and Pondicherry, we offer producer company registration services. We provide a low-cost online producer company registration process. We provide the service at a lower cost and more efficiently than our rivals.
Producer Company Overview
A producer company is a group of farmers or agriculturalists with legal recognition whose goals include raising members' living standards and ensuring that their support systems, earnings, and profitability are in good standing. According to the Companies Act of 1956, a Producer Company may be established by 10 or more persons, 2 or more institutions, or by both (10 individuals and 2 institutions) conducting business together.
Prerequisites For Incorporation
- A Producer Company may be formed by 10 or more Producers or by two or more Producer Institutions, although there is no maximum number of members.
- A producer business must have a minimum capital of Rs. 500,000 to be incorporated.
- A producer firm should have a minimum of 5 directors and a maximum of 15.
Benefits of Producer Company
- The income from agriculture is excluded under section 10(1) of the Income Tax Act of 1961. However, depending on the type of agricultural activity engaged in, the exemption for agricultural income allowed under section 10(1) may not always apply.
- The Income Tax Act does not specifically mention any tax benefit that, by definition, gives producer corporations any tax breaks or exemptions. Some tax advantages and exemptions, however, are dependent on the producer company's agricultural activity.
- Selling the cultivated green tea leaves, for instance, generates income that is classified as agricultural income under the Income Tax Act and is completely tax-free. However, only 60% of such money will be regarded as agricultural income and 40% of such income will be taxed if the tea leaves are further processed to produce tea.
- It is therefore clear that a production company's tax benefit and exemption are entirely dependent on the activity it engages in.
Documents Required for Producer Company
A SUBMISSION TO BE MADE BY DIRECTORS AND SHAREHOLDERS
- A scanned copy of your passport or PAN card (Foreign Nationals & NRIs)
- Voter ID, passport, or driver's licence scan
- Latest scanned bank statement, phone or mobile bill, electricity or gas bill, etc.
- Photo the size of a passport
- A sample signature (blank document with signature [directors only])
- The first three documents must be self-attested by each of the directors. All documents for NRIs and foreign nationals must be apostilled or notarized (if they are currently in India or another country that is not a member of the Commonwealth) (if in a Commonwealth country).
- Latest scanned bank statement, phone or mobile bill, electricity or gas bill, etc.
- English-language scan of a notarized rental agreement
- Scanned copy of the property owner's No-Objection Certificate
- English-language scan of a sale deed or property deed (in case of owned property)
- Note: Your residence can also serve as your registered office if you like.
FOR THE REGISTERED OFFICE
FAQ
How many Directors are needed to incorporate a Producer Company?
A Producer Company must have a minimum of 5 and a maximum of 15 directors to be registered in India.
What is the Minimum Capital requirement to register a Producer Company?
In order to register a Producer Company, you must have at least Rs 5 lakhs in capital.
Who is eligible to join a Producer Company?
Any person or group is eligible to join a Producer Company in India.
Is it Mandatory for a Producer Company to get its account audited?
Yes, a Producer Company must have its accounts audited in accordance with the terms of the 2013 Companies Act.
Do I need to be personally present to register a Producer Company?
No, you do not need to come into our office to register a Producer Company because the full registration procedure is done online. All you have to do is submit the appropriate paperwork through the portal.
How is a Nominee appointed in the case of a Producer Company?
One nominee must be submitted by each member of the Producer Company in the manner specified. Additionally, this must be done three months after joining a production business.
What are the types of Producer Company prevalent in India?
Production Businesses, Marketing Businesses, Technical Service Businesses, Financing Businesses, and Infrastructure Businesses are the five main types of Producer Companies found in India.
What is the tenure of a director in a Producer Company?
For a minimum of one year and a maximum of five years, a director may hold their position in a producing business.
What are the advantages of a Producer Company in India?
A production firm in India offers a number of advantages. Some of them include the ability to sue or be sued, acquire property, take deposits, have limited liability, have better credibility, and are easier to manage.
What are the Tax Benefits of a Producer Company?
According to section 10(1) of the Revenue Tax Act of 1961, one of the primary tax advantages to a producer company is that the agricultural income earned is entirely exempt.