Annual compliance of Producer Company must be finished by 30th September following the financial year.
The concept of Producer Company was started in 2002. Producer Company is handled by different provisions of the companies Act 1956. Section 465(1)'s provision of Companies Act 2013 denotes that Companies Act 1956's provisions shall be changed for a Producer Company that is required.
Producer Company is a corporate body that shall be registered as Producer Company according to the Companies Act 1956. The company should include activities or objectives that are stated in Section 581B.
Certain objectives are stated in the Producer Companies Act and they can be added into such as harvesting, production and promoting the techniques of mutuality and others.
A number of conditions are to be satisfied by Producer Company. Let us have a look at them :
The members of the company require being primary producer.
The owner of the producer company needs to offer an individual who is involved in the task that is related to primary production.
Name of the company should end with the phrase "Producer Company Limited".
Producer Company can also be mentioned as the phrase "Companies with Limited Liability".
There is not any maximum number of members in these companies.
When it comes to law and administration of the company, it can be considered as Private Limited Company.
Annual General Meeting should be hold by the Producer Company in every financial year. The two annual general meetings should be held with a gap not more than fifteen months. First annual general meeting of the producer company should take place within 90 days from its incorporation. In the meeting, members have to accept the articles of Producer Companies and Board of Directors should be appointed.
The notice regarding Annual General Meeting should include the following :
Extraordinary General Meeting Minute or earlier Annual General Meeting
Agenda of Annual General Meeting
The audited profit and loss accounts and balance sheet of the Producer Company and its subsidiary should be included with the Board of Directors Report.
The names of candidates used for election should be included.
A draft of resolution needs to be included for the auditors' appointment.
Proposed amount is to be shifted to Reserve
State of affairs of the Producer Company
Proposed amount is to be distributed in the form of patronage bonus
Payment of the amount is to be made as limited return on share capital
Subjects regarding protection of the environment, conservation of energy, earnings and expenditure of foreign exchanges
Every material changes and commitment that made impact on the financial state of the Producer Company and its Subsidiary. If above modification is occurred in the gap of board's date of the report and the Producer Company's date of annual accounts.
Any other need stated by the board.
Filing of annual Return :
Each producer Company must file proceeding of annual general meeting with the audited Balance sheet, Director's Report and the profit and loss account with Registrar within sixty days of the date of Annual General Meeting.
The above should be filed with an annual return with the prescribed fees.
Penalties :
Any of the following defaults by Directors of the Producer companies can cause penalty :
Hand over the charge of the books of account
Cannot organize annual general meetings or other general meetings
The company may be penalized by a fine of Rs. 1 Lakh. If the default continues then the everyday penalty of Rs. 10,000 is imposed till its continuation.
One Click Business Solutions Private Limited offers fastest and accurate registration services for Private Limited, Public Limited, Producer Company, Nidhi Company and others. We have a team of dedicated professionals to perform the registration process accurately to avoid any legal hassle. You don't need to go outside of your home or business as we process your documents flawlessly from the comfort of the home.
Active Status – If any default took place while filing annual compliances then company's name will be omitted by the registrar. Thus, active status of the company can be maintained by annual compliance.
Credibility and Transparency - Appropriate compliance as par company law is the duty of every company. This regular compliance assists the company growing its trustworthiness. In case of loans, government tenders and others, banks and other financial bodies consider the regular compliance as criteria to ensure maximum transparency and credibility of a business.
Competitive Benefit – Annual compliance offers a competitive edge in the market. This can be used to advertise the business and offering assurance to customers or investors.
Client Assurance – Regular annual compliance helps assuring the clients that the operations of the company are reviewed by itself regularly. Therefore they can trust the company about their operations.
Preventing Penalties – Generally, small businesses encounter heavy penalties because they do not follow annual compliances. Thus regular annual compliances cause preventing heavy penalties.
Accuracy of Data – Annual compliance by the companies makes sure that the data obtained are accurate.
Articles of association
Memorandum of association
PAN cards of the directors
Directors' identity proof
It is considered as a private limited company
Limited share capital and limited liability of members
The maximum number of members can surpass 50
Producer Company can never become a public or deemed public limited company
At least 5 people are needed to register a producer company in India.
Identity proof and address proof is compulsory for all the proposed directors of the Producer Company. PAN Card is compulsory for Indian Nationals. Furthermore, property-owner of the registered office premises must offer a No Objection Certificate and needs to submit his or her identity proof and address proof.
We incorporate a Producer Company in the fastest turnaround time. The time taken for incorporation depends on submission of appropriate documents by the client and Government authorizations. For faster registration, it is recommended to select a unique name for the proposed company and all the required documents must be collected before beginning the registration procedure.
Once a Company is registered, it will be active as long as its annual compliances are filed accurately and regularly. If annual compliances are not filed with a Company, it will become dormant and maybe eliminated from the register after a certain period of time. There is a provision for a struck-off company to be revived for a period of up to 20 years.
A Digital Signature Certificate includes the identity of the sender or sign electronically while filing documents online. The Ministry of Corporate Affairs (MCA) made it compulsory that the Directors sign in the application and documents must be done using their Digital Signature. Therefore, a Digital Signature is necessary for all Directors of a planned Producer Company.
Director Identification Number is known as an exclusive identification number allocated to all active and proposed Directors of a Company. It is compulsory for all current or proposed Directors to have a Director Identification Number. Director Identification Number doesn't expire and an individual can have only one Director Identification Number.
The age of the director must be at least 18 years and must be a natural human being. The Director needs to be involved in farming related activities.
An address in India is compulsory where the registered office of the Company will be located. The premises can be an agricultural or commercial or residential where communication with the Ministry of Corporate Affairs can be performed.
No, you do not need to be present at our office while registering a Producer Company. You may scan all the documents and send us through email.
