- Producer CompanyAny 10 or more producers (Individuals) can join together to form a production company but there is no upper limit on the number of members. Or, any 2 or more producer institutions can form a producer company.
- A minimum capital of Rs. 500,000 is required to incorporate a producer company.
- There should be a minimum of 5 directors (maximum of 15) in a producer company.
- It can never be converted into a public company however it can be converted into a multi-state co-operative society.
1. Passport size photograph (Scan Copy)
2. PAN Card copy (Mandatory)
3. Proof of Identity
(Any one of the below)
-Passport
-Voter ID
-Driving License
-Aadhar Card
4. Proof of Residence (in the name of applicant)
(Any one of the below)
-Bank Statement
-Electricity Bill
Case-A: If the Property is owned by any Director or Shareholder:
1. Sale deed of the Property
2. NOC from the owner (Digital CA will provide a draft copy)
Case-B: If the property is taken on rent by any Director or Shareholder:
1. Rent Agreement
2. NOC from the owner (Digital CA will provide a draft copy)
In addition to the above, anyone of Electricity Bill/Telephone Bill/Gas Bill/ Mobile Bill is required.
A Producer Company can have only equity share capital. The minimum paid-up capital required for incorporating a Producer Company is Rupees Five Lakhs only.
Minimum five directors are required for a Producer Company. A Producer Company can have a maximum of fifteen directors. There is no restriction on the maximum number of members of a Producer Company.
A producer company is a legal entity and a juristic person established under the Act. Therefore, a producer company has the wide legal capacity and can own property and also incur debts. The members (Directors) of a producer company have no liability to the creditors of a producer company.
A producer company has ‘perpetual succession’, that is continued or uninterrupted existence until it is legally dissolved. A producer company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.
A producer company being a juristic person, can acquire, own, enjoy and alienate property in its own name. No member can make any claim upon the property of the producer company as long as it is a going concern.
The Board of Management of a producer company can be easily changed by filing simple forms with the Registrar of Companies. The Board of Management of a producer company controls the activities of the producer company.
Indian economy is basically an agrarian economy. More than two-thirds of the Indian population depends upon agriculture for their livelihood. The Indian Income Tax Act, 1961(“the IT Act”) specifically exempts tax on agricultural income under section 10(1).
However, the exemption for such agricultural income shall sometimes vary depending upon the kind of agricultural activity carried on. It is to be noted that though the IT Act does not give any special benefits or exemptions to Producer Companies as such, depending upon the kind of agricultural activity it carries on, certain tax benefits can be availed.