Compliances of a Producer Company

MEANING A PRODUCER COMPANY

Producer companies mean the companies which are registered under the companies act,2013 and it is formed by (A) by any 10 or more individuals every individual should be producer (B) 2 or more producer institution (C) combination of 10 or more individual and more producer institution and the things which have been produced through farming activities.

 

FORMATION OF PRODUCER COMPANY AND ITS REGISTRATION

(1)  ten or more individuals, each of them being a producer or any two or more Producer institutions, or a combination of ten or more individuals and Producer institutions, desirous of forming a Producer Company having its objects mentioned in section 581B and otherwise complying with the provisions of this Act in respect of registration, may form an incorporated Company as a Producer Company under this Act.

(2) If  Registrar is satisfied with all the requirements of this Act have been complied then the registrar shall, within thirty days of receipt of the documents, register the memorandum and the articles and all the other documents and issue a certificate of incorporation.

(3) A Producer Company is formed then the Member’s liability is limited by the memorandum to the amount if any, unpaid on the shares respectively held by them and be termed a company limited by shares.

(4) It may return to all its promoters all the direct costs that relate to the promotion and registration of company including registration, legal fees which shall be subject to the approval of the Members.

(5) On registration the Producer Company shall become a body corporate as it is a private limited company to which the provisions contained in this Part apply, without, however, any limit to the number of Members thereof.

Compliances of a Producer Company

ANNUAL COMPLIANCES OF A PRODUCER COMPANY

1. As per sec. 184 (1) Every director of the company shall at the first meeting of the board in every financial year disclose his interest in any other entity.
2. Form DIR 8 under sec.164 (2) read with 143 (3g) every director needs to file to the company in every financial disclosure of non-disqualification.
3. Every company shall file an annual return within 60 days of holding an annual general meeting in MFT 7.
4. Form AOC 4 company is required to file a financial statement, cash flow statement, profit, and loss account within 30 days of the annual general meeting.
5. DPT 3 company is required to file every year before 30th June in respect of return of deposit or particulars not considered as a deposit.
6. MSME 1 form company has to file this return within 30 days of the end of half-yearly in respect of pending payment of MSME vendor to the registrar of company.
7. Every director every year is required to file e – form DIR – 3 KYC till 30th September.
8. It needs to prepare the director report.
9. The company has to circulate the notice of the general meeting at least 14 days before the meeting.

10. The board shall meet every 3 months & 4 board meetings must be held every year.

ANNUAL GENERAL MEETING AND INVESTMENT OF PRODUCER COMPANY

ANNUAL GENERAL MEETING

1. Every producer company each year holds an annual general meeting in addition to any other meeting and the gap between two annual general meetings shall not be more than 15 months.
2. The first annual general meeting shall behold within 90 days from the date of its incorporation.
3. Members shall adopt the articles of association of the producer company.
4. Appointment of board of directors in the annual general meeting.
5. an annual general meeting shall be called upon business hours, shall be on the day which is not a public holiday and held at the registered office of the producer company or some other place within the same city, town, village.
6. 14 days of notice is to be given for calling the annual general meeting.
7. Notice of the annual general meeting mention the date, time, and place of the meeting.
8. The annual general meeting shall be sent to every member and auditor of the producer company.
9. Unless the articles prescribe for the larger number one–fourth of the total number of members of the company shall be the quorum.
10. Proceeding of the annual general meeting director report, balance sheet, profit & loss account shall be filed with the registrar within 60 days of the annual general meeting.
11. If the producer company is formed by the producer institutions then such institutions represent the general body through the chairman or chief executive.

 

Compliance for Foreign Subsidiary Companies in India

NOTICE OF ANNUAL GENERAL MEETING

Notice of the annual general meeting shall be accompanied by the following documents-

1. Agenda of the annual general meeting.
2. Minutes of the previous annual general meeting.
3. Audited balance sheet and profit and loss account if any, along with the board report with respect to-
4. State of the affairs of the producer company.
5. The amount carried to reserves.

• • Amount paid to limited return on share capital.
  • The amount is distributed as a patronage bonus.
  • Any material changes and commitments.
  • A draft resolution for the appointment of a board of directors.
  • The draft resolution of amendment of memorandum of association or articles of association along with board recommendation.

INVESTMENTS OF PRODUCER COMPANY IN OTHER COMPANIES

1. Producer company for promotion of its objective can acquire the shares of the producer company.
2. It may subscribe to the share capital whether by way of subsidiary, joint venture
3. All investment can be made by the producer company if it is consistent with the objects.
4. Every producer company shall maintain a register of all the investments.
5. The register maintained for the investment shall be kept at the registered office of the company and shall be open for inspection by the members.
6. The general reserves of the company shall be invested to ensure the highest return.
7. It either by itself or together with the subsidiary can invest by way of subscription, purchase, or otherwise.

Types of Producer Companies

MEMORANDUM OF ASSOCIATION AND ARTICLES OF ASSOCIATION

Memorandum of association and articles of association of the producer company duly signed by the registrar of the company and required to be presented to the registrar of the state where the company registered office is proposed to be situated to be set up.

PRE – INCORPORATION REQUIREMENT

-Minimum capital of 5 lakhs is required.

-Minimum of 5 directors and a maximum of 15 directors is required.

-It can not be converted into a public company.

DOCUMENTS REQUIRED OF PRODUCER COMPANY

Below is the list of documents that are needed from the Producer Company and directors for the registration producer company:

List of Documents of Producer Company:

• Scanned copies of Rent Agreement in case the premise is a rented one and NO objection certificate.
• Registered Office Address Proof of such as unitality bill or Electricity Bill etc.

List of Documents of Directors:

• Mobile or Telephone Bill/ Latest Bank Statement(not older than two months): These documents act as the residence proof of directors and must contain the name of the director.
• Scan Copy of PAN Card of All the directors
• One Document ScanCopy of Driving License/Voter ID of Directors
• Copy of Passport size Photo of Directors

PROCESS OF INCORPORATION OF PRODUCER COMPANY

 

Step 1: Need Apply for DSC

Step 2: Then Apply for DIN

Step 3: Apply for Name Approval through RUN

Step 4: Drafting & submitting final incorporation documents

Step 5: Receiving Certificate of Incorporation & opening Bank Account

TAX BENEFIT UNDER INCOME TAX FOR PRODUCER COMPANY

Agriculture income is exempt are exempt under the income tax act, 1961. But it does not mean that all the agriculture income are exempted from the income tax act,1961.

It depends upon the activity of agriculture whether the income is exempt or not. forex. If the green tea leaves are processed for manufacturing then 60 percent of income is exempt and 40 percent is taxable.

 

www.carajput.com; Producer company V/s Producer corporations

FAQ ON COMPLIANCES OF A PRODUCER COMPANY

Q1 – weather the complaints of the producer company is only for the working producer company?

Ans. – no, the annual complaints of producer companies are for all companies wheater it is a working producer company or a nonworking producer company.

Q2 – does all type of agriculture income is exempt from income tax in producer companies?

Ans. – no, it depends upon the activity whether it is exempt from the income tax act,1961 or not.

Q3 – can the producer company can hold all 4 board meetings in a single quarter?

Ans. No, the producer company must hold a board meeting every quarter of the year.

Q4 – if any director interest changes then at which meeting he is required to disclose his interest?

Ans. – if there are any changes in the director’s interest then he is required to disclose his interest immediately following the next meeting of the board.

Q5- is there is an extension of holding the first annual general meeting of the producer company?

Ans.- the first annual general meeting of the producer company shall be held within 15 months extension of holding the annual general meeting can be granted with the permission of the registrar.

Q6- if articles specify the required number of quorum then one–fourth of the total member will prevail or articles?

Ans. If articles specify the required number of the quorum then it will prevail over one–fourth of the total number of members.

Q7- can a producer company can make an investment that is not mentioned in its object?

Ans.- no, a producer company cannot make an investment that is not mentioned in the object.

How can we assist you to get the Registration of the Producer Company?

Our services shall be as follows:

• Apply and Approved name of the MCA
• Regular updates during the incorporation process
• DIN & DSC’s for subscribers & directors
• Filling of company incorporation e-forms with the Ministry of Corporate Affairs
• Drafting objective, MOA & AOA
• Apply of TAN & PAN
• Advice & Guideline for the business plan
• Darting of legal agreement, corporate drafts set, letters on a mandatory basis.

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