Producer Company registration

Producer Company registration 

Understanding the term Producer Company:

A Producer Company maybe refer to as a legally recognized entity of farmers with the objective of improving the standard of living.

Producer Company can be incorporated by 10 or more individuals or 2 or more institutions or it can be a combination of both having business objectives as one of the following:

·   Production

·   Procurement

·   Grading

·   Harvesting

·   Handling

·   Pooling

·   Selling,

·   Marketing

·   or Exporting the primary produce of the Members or import of goods or services for their benefit.

Objectives

The main objective is to facilitate the formation of co-operative businesses in the form of companies.

The objects as given under section 581B can be detailed as follows:

Production, procurement, harvesting, pooling, grading, handling, selling, marketing, exporting of the primary output of the Member(s) or importing of goods or services for their benefits,

provided that the Producer Company may also carry on any of the activities specified under this clause either by itself or through some other institution.

·   Processing including preserving, drying, distilling, brewing, venting, packaging, and canning of the produce of its Member(s)

·   Sale, Manufacture, or supply of machinery, equipments and/ or consumables mainly to only its Members.

·   Rendering consultancy services, technical services, training, research and development and other activities for the promotion of the interests of its Members only.

·   Providing education to its Members and others.

·   Insurance of producers or their primary produce.

·   Transmission, Generation, and distribution of power, revitalization of land and water resources, their use, conservation and communication relatable to primary produce.

·   other activities or ancillary to any of the aforesaid activities

 

Documentation to incorporate a Producer Company

 

1) First and the foremost thing is to Obtain a Digital Signature Certificate DSC in short by all the directors of the Producer Company.

2) After that Director Identification Number (DIN) shall be procured.

3) Once having DIN and DSC, you are required to file Form for reservation of name of the company to the Registrar of Companies (ROC). The name shall include the words "PRODUCER COMPANY" at its end.

4) Once the name is approved, you are required to prepare MOA & AOA of the company

Apart from above few more documents will be required like INC 8 (declaration by professional), Affidavit, utility bill and/or NOC if the premises is rented. The directors shall give their consent to act in the company in form DIR 12 and other details in DIR 8. Once these documents are prepared, one can upload these documents on the website of the ministry.

Thereafter ROC shall after being satisfying itself, shall issue a certificate of incorporation and the company can start its business.

Benefits of Producer Company

The main idea of forming a Producer Company is to create a farmer society in company form and conversion of an co-operative society into an systematic Company, for which, they do certain activities like procurement, pooling, production, harvesting, handling, marketing, grading, selling and/or importing/exporting of the primary producers of all its members.

The benefits of registering a farmer producer company are as follows:

Creditworthiness

Forming a producer company offers a lot of credibility to farmers as if we compared to other unregistered entities of farmers.

Separate legal entity and benefit of limited liability

The producer company provides the benefit of separate legal entities and limited to its members.

Owning a property

A Farmer company has all the rights to buy/sell a property in its own name. It can accept deposits or can also provide loans to its members

Ease in management and registration

Registration as a producer company is a natural process and the company can make changes in the Board of Management through filing some simple forms with the concerned ROC.

Read the detailed article at https://www.trijuris.com/producer-company-registration/  

 

Sole Proprietorship Registration

SoleProprietorship Registration

 What is a Sole Proprietorship? 

It is a popular business form due to its simplicity, ease of setup, and nominal cost. Sole-Proprietorship can be started quickly with minimal registration and compliance with almost no fees or charges involved.

A sole proprietor only need to register his or her name and secure local licenses, and the sole Proprietor is ready for business. A sole proprietorship is started by those entrepreneurs willing to start their commercial enterprise that is less complex as compared to other business structures in India.

Characteristics

1. Ownership: In this type of business unit, a single person owns the entire business, meaning by all the assets belongs to the Sole Proprietor. He bears all the risk associated with his business. Hence, the business can be ended at any point of time whenever the sole Proprietor.

2. No sharing of Profit as well as Loss: Whatever be the income earned from the sole Proprietor, it belongs to him only. He is not required to share it with any other person and Consequently, there is no sharing of profit and losses as may be generated by the business. 

3. Capital: The capital which is required to commence the business or to carry out operations, is brought into the business by the Proprietor himself, ie., through personal mode resources or through borrowing the same from any bank, financial institutions, or form friends and relatives.

4. Unlimited Liability: it is one of the major concerns for a sole proprietorship, the liabilities are unlimited. In case of any loss, the personal property of the Proprietor can be utilized in order to set off the debts.

5. Less Legal Formalities: Legal Formalities requirements for formation, operation and closure of a sole proprietorship business is nil. The business does not require any registration. However, for different benefits/incentives, he can register himself voluntarily and can have a certificate of registration.

6. Control: As there is only one person who is in charge of all the activities, he has full control of the business. Meaning by, the sole Proprietor takes all the decision and executes it, in the manner he like. 

 

Advantages of a sole proprietorship:

The benefits of sole Proprietorship include:

• Quickly to establish a business ie., instantly, inexpensively and easily.
• Sole proprietorships do not have many legal formalities to be taken care of.
• A sole proprietor need not pay tax on himself.

 

Disadvantages of a sole proprietorship:

The disadvantages of a sole proprietorship include:

• The owner's personal property can be attached in case of any disputes being made or any fraud is done.
• it is very difficult to raise funds in case of sole proprietorship business.

Documents Required to Registered A Sole Proprietorship

In order to start a Sole Proprietorship business, the following document(s) are required:

• Identity proof.
• Address and. 
• Rent Agreement/sales deed.

What Are The Documents Required For Opening A Current Account?

 

• Any Proof of the existence of your business.
• Shops & Establishments Act Registration. (For shop registration read more).
• Identity proof.
• Address proof.

What are the Compliances required after registering as a sole proprietor?

·         As a sole proprietor, you must file Income Tax Return annually.

·         Also, you need to submit your GST Return if you are registered under GST.

·         A sole proprietor should also deduct TDS and file TDS return if liable for Tax Audit.

Common Registrations for Proprietorship

Following our the registration which can be procured by the Sole Proprietor in order to establish his identity,

MSME Registration: MSME or Udyog Aadhaar registration can be obtained in the name of the business to develop that the Sole Proprietorship is registered under the Ministry of Micro, Small and Medium Enterprises.

TAN Registration: TAN Registration must be obtained for the Proprietor from the Income Tax department if the Proprietor is making salary payments wherein TDS deduction is required.

GST Registration: GST registration must be obtained if the Proprietor is selling goods or services that cross the GST turnover threshold limit for registration. In most states, GST registration is required for service providers having annual revenue of more than Rs.20 lakhs and in case of traders - yearly revenue of more than Rs.40 lakhs.

Import Export Code: Import Export Code or IE Code can be obtained from the DGFT in the name of the business - in case of a Proprietorship business undertaking export and/or import of goods into India.

FSSAI Registration: In case the Proprietorship is involved in the selling of food products or handling of food products, FSSAI registration must be obtained from the Food Safety and Standard Authority of India in the name of the Proprietor. 

Read process in detail: https://www.trijuris.com/sole-proprietorship-registration/