Producer Company Registration

Benefits

What are the advantages of registering a business as a Producer COmpany?

Tax Benefits

Income Tax Act provides exemptions for the agricultural income. The exemption provided under section 10(1) for the agricultural income sometimes vary on the basis of the agricultural activity carried out.

Support from other organizations

NABARD, Departments of Government will extend funds facilities additionally and will assist with dedicated support to the Producer Organization Promoting Establishment (POPI) for the growth of the Producer Organization.

Lesser Risk as it limited liability

If any unfortunate event happens, the partners will not have to risk their personal assets as their liability is limited to the capital they agreed to contribute.

Separate Legal Entity

When someone defaulted the due that is receivable to the Producer Company, it can sue the party in the court like a real person and can bring him to the court of law because Producer Company will be treated as a separate person in the eyes of law.

Online Registration

Documents required for registration of a Producer Company

PAN & AADHAR Card

PAN & Aadhar Card of all directors Foreign nationals may provide passport

Address Proof

Bank Statement/Electricity Bill of all directors Foreign nationals may provide passport

Identity Proof

Voter ID/ Passport/ Driving License of all directors

Photograph

Passport Size Photos of all directors

Business Address Proof

Electricity bill or Utility bill of the premises

Rent Agreement

Rent Agreement with the Building Owner

NOC From Owner

Declaration from owner for using the address

Other Basic Details

Few other details relating to KYC and background information

Online Registration

Register a Producer Company in a Simple way

Pick your Service that will suit you
Fill out the contact details form
Contact us to get the queries resolved (if any)
Make the payment to close the deal
Application for Name Approval
Receiving the documents
Register for DSC
Processing the documents
Filing the application for registration
Receive the Certificate of Incorporation, PAN & TAN

Process

Process to Register a Company in India

Day 1 - 2
- Review of documents and information provided
- Checking Name availability
- Name reservation application under SPICe
Day 3 - 4
- Application for Digital Signature Certificate
- Filing Producer Company registration application
- Drafting of Producer Company MOA & AOA
Day 4 - 7

Government processing time
Day 8 - 9
- DIN allotment application
- Application for PAN and TAN of Producer Company

What Is The Right Business Structure For You?

LLP vs. Private Limite Company vs. Partnership

	Private Limited Company	One Person Company	Limited Liability Partnership	Partnership Firm	Proprietorship Firm
Act	Companies Act, 2013	Companies Act, 2013	Limited Liability Partnership Act, 2008	Indian Partnership Act, 1932	No specified Act
Registration Requirement	Mandatory	Mandatory	Mandatory	Optional	No
	Registration under Companies Act is mandatory	Registration under Companies Act is mandatory	Registration under LLP Act is mandatory	Unregistered partnerships are legal, but registered entity enjoys certain advantages	There is no registration criteria prescribed. But, registration is recommended
Number of members	2 – 200	Only 1	2 – Unlimited	2 – 50	Only 1
	Minimum 2 and not more than 200 shareholders	Only an individual,and an Indian resident can be the shareholder	No bar on maximum number of partners, but minimum 2 Designated Partners are required	It is formed with minimum 2 partners, but not exceeding 50	Proprietor is the only owner of the firm
Separate Legal Entity	Yes	Yes	Yes	No	No
	It is a separate entity and can own assets in its name	It is a separate entity and can own assets in its name	It is a separate entity and can own assets in its name	It does not have any separate identity from its partners	Proprietor and business are considered the same
Liability Protection	Limited	Limited	Limited	Unlimited	Unlimited
	Limited up to the total value of shares subscribed	Limited up to the value of shares subscribed	Limited up to the capital amount agreed to introduce	Partners are jointly and severally liable to pay the debts of the Partnership Firm	Proprietor’s liability is to pay-off all the debts and obligation of the firm
Statutory Audit	Mandatory	Mandatory	Dependent	Not mandatory	Not mandatory
	Auditor must be appointed within the 30 days of incorporation	Auditor must be appointed within the 30 days of incorporation	Applicable when turnover exceeds INR 40 Lakh or contribution exceeds INR 25 Lakh	Statutory audit not applicable. Tax audit may be applicable based on turnover	Statutory audit not applicable. Tax audit may be applicable based on turnover
Ownership Transferability	Restricted	No	Yes	No	No
	Shares can be transferred with the consent of other Shareholders	Shares are not transferable easily	Ownership can be changed with consent of other partners	Ownership is not transferable easily, clause of partnership deed should be referred	Firm is no different from proprietor and so ownership is not transferable
Uninterrupted Existence	Yes	Yes	Yes	No	No
	Perpetual existence as the management and owners are different. Ownership is easily transferable	Perpetual existence. The nominee will take place of member	Change in Partners or Designated Partners does not affect the existence of LLP	Change in partner leads to dissolution or formation of another partnership firm	Death or insolvency of proprietor directly affects the firm
Foreign Participation	Allowed	Not Allowed	Allowed	Not Allowed	Not Allowed
	Foreign national are allowed to invest under the Automatic Route	Member, nominee and director must be an Indian resident	Foreign nationals are allowed, subject to FDI Guidelines	Foreign nationals are not allowed to be a partner	Foreign Nationals cannot commence proprietorship business
Tax Rates	Moderate	Moderate	High	High	Low
	Tax rate applicable for small companies is reduced to 22%, dividend distribution tax applicable	Tax rate applicable for small companies is reduced to 22%, dividend distribution tax applicable	With tax rate of 30% on business profit, no tax on income distribution to partners	With tax rate of 30% on business profit, no tax on income distribution to partners	Tax rates of individual applied to Proprietorship Firm
Statutory Compliances	High	Moderate	Moderate	Less	Less
	Companies have to meet high compliance requirements	Companies have to meet high compliance requirements	Lesser compliance requirements compared to companies	Separate ITR of partnership is filed, else there is no filing requirement	No compliances and no requirement to file a separate ITR
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