Introduction:
According to the Companies Act of 1956, a body corporate with the activities or purposes listed in Section 581B is referred to as a "produced company." In 2002, this particular sort of company was first introduced. The Companies Act of 1956 clause governs the Producer Company. Manufacturing, harvesting, grading, handling, and marketing can all be done by the producer firm. We'll talk about the Producer Company's annual filing in more detail below.
What is a Producer Company?
A Producer Company's registration procedure is then compared to the one of a Private Limited Company. Initially, get the DSC and DIN for the Producer Company's initial suggested directors. A request for name reservation can be submitted to the Registrar of Companies (ROC) after receiving the DSC and DIN. A producer company's name must include the phrase "Producer Limited Company" at the end. File your request for registration in the manner in which it is required for establishing the Producer Company after receiving the ROC's authorization of the name.
A production company is a legal entity that is registered with the Ministry of Corporate Affairs and engages in activities or has objects as described in Section 378A of the Companies Act of 2013.
According to Section 378A of the Companies Act of 2013, the production company's objectives are as follows:
Acquiring, gathering, producing, pooling, marketing, grading, handling, and selling primary products of the production company's members or importing such produced thing, or rendering any kind of service for the advantage of all members. Production companies are free to engage in these operations independently or cooperatively with any other entity.
Manufacturing of its members' produce comprises drying, preserving, being prepared, distilling, canning, vinting, and packaging.
Production, provision, or sale of any machinery, equipment, or additional supplies to its members.
Educating both its members and the public about the value of helping one another.
Offering technical assistance, training, research and development, and other services to further advance the goals of its members.
Transmission, generation, and distribution of electricity, revitalization of water and land resources, their applications, and primary produce conservation.
Granting growers and their main produce insurance
Welfare programs or other initiatives implemented for the advantage of the producer company's members
Encouraging techniques for mutual aid.
Providing funding or any other financial support to the members is part of the funding of the processing, purchasing, marketing, and other operations that were described previously.
Requirements for Producer Company Annual Filing/Compliance:
Documents Needed to Register Producer Companies in India
Each Producer Company must provide the following paperwork to the MCA along with its yearly compliance form to support its assertion of effective legal operation:
Memorandum of Association,
Articles of Association,
Directors' Identity proof
PAN cards of the Director of the Producer Company
Conditions To Be Met By Producer Company:
The mentioned prerequisites for the producer company concept are as follows.
The Company's major producer is a member.
These businesses are known as limited liability firms since each member's obligation is only for several unpaid shares.
Producer Company Limited must be written at the company's end.
For purposes of applying the law and managing company law, this company may be recognized as a private limited company.
These companies are exempt from the cap on the number of members.
Compliance with Laws and the Producer Company's Annual Filing:
The Producer Company must adhere to several regulations each financial year. The initial Annual General Meeting has to be held within 90 days of the company's incorporation, at which the members have to approve the Producer Company's bylaws and elect the board of directors. The announcement of the AGM must include the details that follow.
The meeting's agenda is listed in item one.
Annual General Meetings are held every fiscal year Previous Minutes of Annual and Extraordinary General Meetings
Any sort of Company must submit an annual report to the ROC.
The candidate's name for office.
The Producer Company and its subsidiary's statement of earnings and losses and audited balance sheet, as well as the board of directors' report.
To maintain the Company's legal status, a Producer Company needs to file an Annual Compliance regularly.
The final annual return of the producer company
The following steps must be taken to file the Producer Company's Annual Compliance:
Compliance Writing
Gathering the data needed to submit the annual compliance. They consist of:
Accountability report
Verified P&L account
Certified financial statement
Regulation Filing
Visit the MCA website and begin completing the necessary compliance forms according to the ministry standards' deadlines.
Submission and processing of compliance
Apply, then wait to hear that your adherence has been taken into account.
Penalties:
The following director default by the producer businesses results in the following penalty:
1. Taking care of the accounting records' custody
2. If the company fails to call an annual general meeting or other general meetings, it may be punished with a fee of Rs. 1 lakh. If the default persists, an additional daily penalty of Rs. 10,000 is imposed until the default is remedied.
3. The information provided above outlines the penalties for the Producer Company failing to comply and non-annual filing.
Benefits Of Producer Company Annual Filing:
The benefits of Producer Company's yearly filing include the following.
1. Credibility and Transparency: Producer Companies are required to file annual reports, and if they do so consistently, their organization gains additional trustworthiness and transparency.
2. Active Status: The Registrar of Companies has the authority to strike out the name of the Company for non-compliance and default in compliance. Thus, keeping Active Status is made possible by annual compliance.
3. Investors and Assurance clients compete with each other with annual compliance: This can help promote the company and reassure customers and investors about its operations.
4. Avoiding Penalties: You can avoid severe penalties by consistently submitting the Producer's Company Annual on time.
Conclusion:
Comply refers to particular forms that corporations must submit. The Companies Act requires that certain forms be completed. To maintain your company's legal status if you are a production company, you have to submit your compliances accurately and yearly. If you don't conform, the government may impose a range of sanctions against you, from paying fines to having your business shut down. You might have concluded from this that regulations are required. You must follow through on your commitments.
eStartIndia is one of the leading online platforms for providing company registration services at an affordable cost.
Want to Start your Producer Company! Call us or Sign up with us for Free Expert Advice!
Author:
Leave a Comment
Previous Comments