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Tag: what documents required for company registration

Producer Company Registration | Benefits | In India
Producer Company Registration | Benefits | In India

Overview: Producer Company Registration

Since agriculture is the backbone of the Indian economy, this sector employs more than 50% of India’s total labor force and accounts for nearly 17-18% of the country’s GDP. In 2002, Producer Company Registration in which the concept of “producer company” was introduced to solve the urgent problem of farmers and farmers collectively referred to as producers. This article will tell you more about the manufacturing company registration process, training, and benefits.

Definition of Producer Company

A producer company allows farmers’ cooperatives to function as legal entities dependent on the Corporate Law Department. 

The purpose of the manufacturing company involves all or part of the following issues: 

  • Production, 
  • Harvest, 
  • Procurement, 
  • Qualification,
  • Pooling, 
  • Handling, 
  • Marketing,
  • Selling,
  • Import/Export of primary products.,

Members of producer companies can carry out these activities independently or through other facilities: 

  1. Processing, including preserving, drying, brewing, distillation, harvesting, canning, and product packaging
  2. Manufacturing or sales of equipment supply/machinery 
  3. Providing education to mutual assistance between members and others. 
  4. Provide technical services, consulting services, training, R&D, and all other activities to promote the interests of its members. 
  5. The generation, transmission, and distribution of energy, the recovery of land and water resources, their use, protection, and communications related to primary products. 
  6. Insurance of producers or their primary produce, 
  7. Promoting techniques of mutuality and mutual assistance,
  8. Social measures or benefits that are beneficial to members are determined by the board of directors.
  9. Other activities may in any way contribute to the observance of the principle of mutual benefit among members. 
  10. The financing of acquisitions, processing, marketing or other activities described in paragraph (aj) includes the provision of credit lines or other financial services to its members.

Formation and Producer Company Registration 

A production enterprise should include: 

  • Ten or more people, each of which is a manufacturer;
  • Two or more production bases; or
  • An association of ten or more individuals and manufacturing organizations. Manufacturing companies must comply with the targets set by the law. 

The registrar will issue the registration certificate within 30 days after receiving the required documents.

Steps: How to Form a Producer Company

The procedure for registering a manufacturing company is almost the same as for a limited company: 

Step 1 

Receive the digital signature certificate (DSC) and director identification number (DIN) of all directors, and provide self-verified copies of documents, such as PAN, Aadhaar card, and contact information,

Step 2

File the proposed enterprise call in FORM-1A with the RoC of the respective country(state) at the side of the prescribed fee. Notify the RoC Availability of the name.

Step 3 

Necessary documents, If the MoA includes the company’s assets and the amount of registered capital, the AoA includes the company’s articles of incorporation. 

Step 4

Submit other documents, such as the formal statement on Form B. 1 stating compliance with all relevant issues related to the establishment of the company; an oath signed by the subscribers of the proposed company The book requires approval from directors, utility bills, and NOC.

Step 5 

After the certificate is issued, the company becomes a legal entity like a limited company. Under no circumstances can you become a joint-stock company. 

Operating a Producer Company Registration

The basic requirements that a manufacturing company must meet are below. They abide by the following rules: 

  1. Every manufacturing company must have at least 5 directors and a maximum of 15 directors. 
  2. After the company is registered, the directors must join within 90 days.
  3. Likewise, the directors may be appoint or elected by the members in the annual general meeting (AGM)
  4. Each appointed director must follow the relevant provisions for a term of at least one year and a maximum of 5 years.
  5. The general meeting of shareholders held once a year, and you will receive a notice stating the meeting agenda, MoM (minutes of the meeting), audited balance sheet, and other information. The notice will be issue no later than 15 months between the date of the annual general meeting and the date of the next general meeting.
  6. In addition, the first general meeting of shareholders held within 90 days from the date of registration. 
  7. The overall balance sheet, P&L accounts, and records are check at each general meeting of shareholders’ and directors’ reports. It submitted to the Registrar within 60 days after the general meeting of shareholders. 
  8. If the manufacturing company forms the producer companies, these companies are represente by the executive director and president.
  9. In addition, proper books of account are maintaine for cash flows, expenses, sales and purchases of goods, assets and liabilities, labor costs, and income statements.
  10. Internal audits must be conducted by auditors in a certain frequency and manner under the methods prescribed by the company’s articles of association and per the Institute of Certified Public Accountants 1949.

Benefits of founding a manufacturing company 

Manufacturing companies enjoy the following benefits:

  • Each member of the company receives a sum of money, in which the value of one or more products allocate to them determined by the directors. Distribution in cash or through equity. This may depend on the conditions under which board. 
  • Members can obtain bonus shares proportional to the withholding amount.
  • In addition, the provisional income regulations and the remaining amount after the regulations are form can be allocate as sponsorship bonuses and participation in business activities in the form of cash or shares. 
  • The members of the manufacturing company are also entitle to receive financial assistance not exceeding 6 months through the credit line. 
  • Loans and guaranteed loans, as stated in the terms, stipulate repayment within 3 months, up to 7 years.

If you are looking for your Producer Company Registration, you can reach out to Chartered Accountants listed on CA in Delhi‘s homepage.

One-Person Company Registration In Delhi | Documents Required
One-Person Company Registration In Delhi | Documents Required

What is One Person Company Registration

A One-Person Company Registration In Delhi is that has only one person as a member. OPC Registration was introduced to encourage individuals who are capable of starting their own business. OPC enables a sole proprietor to convert his firm into a Limited Liability company and avail the benefits of a Company. It is a business structure that enjoys the benefits of both forms of business i.e. a Sole proprietorship and a company. Thus, it eliminates the hassles of finding the right kind of co-partner/s for starting a business as a registered entity.

As Per Section 2(62) of the Companies Act, 2013, One Person Company means a company that has only one person as a member. One Person Company is bringing the unstructured Proprietorship Business into the structured version of a private company. OPC is opening the path for sole proprietors and Start-Ups.

Benefits of One-Person Company Registration In Delhi

  • One Person Can Start The Business : Under OPC, one person can start the business with very little compliance. Due to fewer compliances, a person gets more time to focus on his business and key areas.
  • Complete Control By The Individual : The control remains in the hand of one person only.
  • Limited Liability : In case of One Person Company, the member of OPC has limited liability.
  • Separate Legal Entity From Its Member : Being a company, OPC has a separate legal existence from its member.
  • Easy Compliance And Tax Flexibility : An individual has to follow easy compliance and avails the benefit of tax availability too.
  • Benefits For Small Scale Industries : OPC avails the benefits provided to Small scale industries like easy funding, less compliance, loans at a lower interest rate, etc.

What are the Eligibility Criteria for One-Person Company Registration?

  • A natural person can form OPC who is a resident of India in the preceding calendar year.
  • Only 1 member can form an OPC.
  • The Name should be unique and should not be similar to any other existing company and trademark.
  • An individual cannot incorporate more than 1 OPC or
  • An individual cannot be the nominee of more than 1 OPC.
  • There must be a least 1 director.
  • In the case of OPC, the threshold limit of paid-up capital is Rs 50 lakh and the Average Annual turnover is Rs 2crore in the immediately preceding financial year. However, as per latest budget now there is no restriction on paid up and turnover limit.
  • One Person Company must include in its name (OPC) Private Limited.
  • Pre-condition to indicate the name of the other individual as a nominee. As in the event of the death of the subscriber, a nominee becomes a member of the One Person Company.

What Documents are Required for OPC Registration?

Below-mentioned documents are required for OPC Registration:-

For DSC Application

  • Passport size photo of the applicant.
  • Copy of Id and Address Proof.
  • Email Id and Phone number
  • Specimen Signature

Documents Required For SPICe+ Form

  • Identity proof
  • Address proof & Identity proof and of the nominee and the subscriber

Note-For Residential proof, the applicant can provide any of the following documents:-

  • Copy of Current Bank Account Statement, Phone Bill, or Electricity Bill)
  • Copy of Rent agreement and No-objection Certificate from the property owner.
  • If the property is owned-Copy of the sale deed.
  • Memorandum of Association and Articles of Association
  • Declaration by the Subscribers and Directors
  • Proof of Office Address
  • Copy of Electricity or Utility Bills. However, it should not be older than 2 months.
  • Nominee’s Consent in Form INC-3
  • Disclosure of Director’s Interest and any other document (if required).

FAQ- Frequently Asked Question

Who can register for an OPC?

OPC company registration can be done only by Indian residents, and that too only one at a time, as per the specifications of the Ministry of Corporate Affairs.

What are the mandatory requirements of an OPC?

All such businesses must maintain books of accounts, comply with statutory audit requirements and submit income tax returns and annual filings with the RoC.

How much capital is required to start an OPC?

There is no difference in capital requirement between an OPC and a private limited company. It needs an authorized capital of ₹1 lakh, to begin with, but none of this actually needs to be paid up. This means that you don’t really need to invest any money into the business.

What are the tax advantages available to an OPC?

No general advantages; though some industry-specific advantages are available. Tax is to be paid at a flat rate of 30% on profits, Dividend distribution tax applies, as does minimum alternate tax.

How much does it cost to run an OPC?

The cost of an OPC is only marginally lower than that of a private limited company. You’ll be shelling out around ₹12,000 to incorporate, then paying around ₹15,000 a year in compliance fees and an auditor to inspect your books.

How many directors can there be in an OPC?

An OPC has certain limitations. The person starting the business is its only director and shareholder. There is also a nominee director, but this person has no power whatsoever for raising equity funds or offering employee stock options. The nominee exists only to take over in case of the death or incapacitation of the director. The nominee is chosen by the director and can be anyone, such as your spouse, parents, or siblings. The nominee will need to provide identity proof during registration.

Can I start more than one OPC at a time?

No, an individual can form only one OPC at a time. This rule applies to the nominee in an OPC, too.

If you want to get started with OPC Registration, reach out to Chartered Accountants from CA in Delhi‘s homepage

One Person Company Registration | OPC Registration | Documents
One Person Company Registration | OPC Registration | Documents

What is One Person Company Registration

A One-Person Company Registration is that has only one person as a member. OPC Registration was introduced to encourage individuals who are capable of starting their own business. OPC enables a sole proprietor to convert his firm into a Limited Liability company and avail the benefits of a Company. It is a business structure that enjoys the benefits of both forms of business i.e. a Sole proprietorship and a company. Thus, it eliminates the hassles of finding the right kind of co-partner/s for starting a business as a registered entity.

As Per Section 2(62) of the Companies Act, 2013, One Person Company means a company that has only one person as a member. One Person Company is bringing the unstructured Proprietorship Business into the structured version of a private company. OPC is opening the path for sole proprietors and Start-Ups.

Benefits of One-Person Company Registration

  • One Person Can Start The Business : Under OPC, one person can start the business with very little compliance. Due to fewer compliances, a person gets more time to focus on his business and key areas.
  • Complete Control By The Individual : The control remains in the hand of one person only.
  • Limited Liability : In case of One Person Company, the member of OPC has limited liability.
  • Separate Legal Entity From Its Member : Being a company, OPC has a separate legal existence from its member.
  • Easy Compliance And Tax Flexibility : An individual has to follow easy compliance and avails the benefit of tax availability too.
  • Benefits For Small Scale Industries : OPC avails the benefits provided to Small scale industries like easy funding, less compliance, loans at a lower interest rate, etc.

What are the Eligibility Criteria for One-Person Company Registration?

  • A natural person can form OPC who is a resident of India in the preceding calendar year.
  • Only 1 member can form an OPC.
  • The Name should be unique and should not be similar to any other existing company and trademark.
  • An individual cannot incorporate more than 1 OPC or
  • An individual cannot be the nominee of more than 1 OPC.
  • There must be a least 1 director.
  • In the case of OPC, the threshold limit of paid-up capital is Rs 50 lakh and the Average Annual turnover is Rs 2crore in the immediately preceding financial year. However, as per latest budget now there is no restriction on paid up and turnover limit.
  • One Person Company must include in its name (OPC) Private Limited.
  • Pre-condition to indicate the name of the other individual as a nominee. As in the event of the death of the subscriber, a nominee becomes a member of the One Person Company.

What Documents are Required for OPC Registration?

Below-mentioned documents are required for OPC Registration:-

For DSC Application

  • Passport size photo of the applicant.
  • Copy of Id and Address Proof.
  • Email Id and Phone number
  • Specimen Signature

Documents Required For SPICe+ Form

  • Identity proof
  • Address proof & Identity proof and of the nominee and the subscriber

Note-For Residential proof, the applicant can provide any of the following documents:-

  • Copy of Current Bank Account Statement, Phone Bill, or Electricity Bill)
  • Copy of Rent agreement and No-objection Certificate from the property owner.
  • If the property is owned-Copy of the sale deed.
  • Memorandum of Association and Articles of Association
  • Declaration by the Subscribers and Directors
  • Proof of Office Address
  • Copy of Electricity or Utility Bills. However, it should not be older than 2 months.
  • Nominee’s Consent in Form INC-3
  • Disclosure of Director’s Interest and any other document (if required).

FAQ- Frequently Asked Question

Who can register for an OPC?

OPC company registration can be done only by Indian residents, and that too only one at a time, as per the specifications of the Ministry of Corporate Affairs.

What are the mandatory requirements of an OPC?

All such businesses must maintain books of accounts, comply with statutory audit requirements and submit income tax returns and annual filings with the RoC.

How much capital is required to start an OPC?

There is no difference in capital requirement between an OPC and a private limited company. It needs an authorized capital of ₹1 lakh, to begin with, but none of this actually needs to be paid up. This means that you don’t really need to invest any money into the business.

What are the tax advantages available to an OPC?

No general advantages; though some industry-specific advantages are available. Tax is to be paid at a flat rate of 30% on profits, Dividend distribution tax applies, as does minimum alternate tax.

How much does it cost to run an OPC?

The cost of an OPC is only marginally lower than that of a private limited company. You’ll be shelling out around ₹12,000 to incorporate, then paying around ₹15,000 a year in compliance fees and an auditor to inspect your books.

How many directors can there be in an OPC?

An OPC has certain limitations. The person starting the business is its only director and shareholder. There is also a nominee director, but this person has no power whatsoever for raising equity funds or offering employee stock options. The nominee exists only to take over in case of the death or incapacitation of the director. The nominee is chosen by the director and can be anyone, such as your spouse, parents, or siblings. The nominee will need to provide identity proof during registration.

Can I start more than one OPC at a time?

No, an individual can form only one OPC at a time. This rule applies to the nominee in an OPC, too.

If you want to get started with OPC Registration, reach out to Chartered Accountants from CA in Delhi‘s homepage