In the year 2002, Producer Company’s concept to the Indian economy was introduced. Since then the S K Nagda & Company, Chartered Accountants in Udaipur is top producer Company Registration Consultants.
This concept has helped primary producers in gainning access to input, credit, production technology, market etc.
Under Companies Act 1956, A Producer Company can be formed by 10 individuals (or more) or 2 institutions (or more) or by a combination of both (10 individuals and 2 institutions) having their business objective.
The main objective of the producer company is to facilitate the formation of co-operative business as companies and to make it possible to convert existing co-operative business into companies.
The process of registering a Producer Company is similar to that of a Private Limited Company. Digital Signature (DSC) and Director Identification Number (DIN) must be obtained first for the proposed first directors of the company.
Once, Digital Signature (DSC) and Director Identification Number (DIN) are obtained and after approval of the name availability, application for registration of Producer Company shall be submitted.
There is a requirement under the Act that the name of a producer company must end with the words “Producer Limited Company”.
CA experts in Udaipur Rajasthan India are regularly providing consultancy and getting producer company registration for the farmers, producers, marketers etc.
The Income Tax Act does not specify any specific tax benefit which essentially provides special tax benefits or exemptions to producer companies by its definition, but subject to the agricultural activity carried out by the producer company, certain tax benefits and exemption can be availed.