A producer company is a company incorporated with an object to procure and agriculture production, post harvesting activities and handling the agricultural produce and selling and distribution thereof to benefit its members. The formation of Producer Company requires 10 individuals (or more) or 2 institutions (or more) or by a combination of both (10 individuals and 2 institutions).
The main aim of the formation of producer company is to provide the benefit to its members who are basically the farmers by import of goods and services to improve their standard of living.
Advantages of Producer Company:
- Separate legal entity
- Greater credibility
- Easy management owning property
- Limited Liability
- Tax benefit under Income Tax, 1961
- Deposit Acceptance from its members
- Providing loan to its members at reasonable rate of interest
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Member’s Benefits under Producer Company:
- Every member of company will receive the value of the products they pooled and supplied after the determination by the directors. Further, the amount will be distributed among the members in the form of cash or kind as determined by the directors of the company.
- Members of the Producer company will also get the bonus shares in the same proportion to the equity shares they hold in the producer company.
- Members of the producer company are also eligible to get the financial assistance at a very reasonable rate.
- The remaining amount left after providing provision for payment of limited return and reserves may be distributed among members as a patronage bonus. The amount will be distributed in accordance with their participation in the activities of business.
- Address proof i.e. Voter’s ID/Driver’s License/passport and Identity proof i.e. PAN Card/ Passport/ Election ID Card is required to be provided of all the directors and shareholders
- Bank Statements are required to be provided and it should not be older than 2 months.
- Passport-sized photographs of all directors and shareholders.
- Copy of Utility bill
- Rent / lease agreement in case of the property is taken on rent/ lease respectively
- NOC from the owner of the property
- In case the property is owned by oneself, property papers are required to be filed as a proof
Smartbizguru also helps in posting compliance of the Company like appointing a Auditor, Preparing Finance of the Company, Filing of GST Returns and Other Returns to Government Authority, Registrar of Company (ROC) Compliances, and Consultation on Digital Market solutions.
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