BENEFITS OF A PRODUCER COMPANY
FEATURES YOU CAN'T RESIST
NON- TRANSFERABILITY OF SHARES
The transferability of shares is restricted i.e. a producer company cannot invite general public to endorse for shares, debentures or public deposits.
NUMBER OF MEMBERS
For a producer company incorporation, there is no limit on the number of members. The company can have ‘n’ number of members.
NO MINIMUM SHARE CAPITAL
Another benefit of a producer company is that, it has no requirement of minimum share capital as per the recent amendments provided.
EQUAL VOTING POWER
Equal Voting Power or rights are given to each individual, irrespective of the shares a person is holding.
ENTITLEMENT TO BONUSES
In the same proportion as the shares are held by the members, they are entitled to get bonus shares as well. Hence, the members of a Producer Company are entitled to the bonuses.
CREDIT FACILITY
Credit facility is available to any member for a period not exceeding six months (such facility must be in connection with the business of the Company).
LOANS AND ADVANCES
Loans are provided to the producer member against security, which is repayable within a period not exceeding seven years from the date of disbursement of such loans or advances.
NABARD LOAN
To meet the needs of Producer Companies, NABARD provides support and financial assistance. NABARD set up a Rs. 50 crore PODF (Producer Organisation Development Fund) in the year 2011, out of its operating surplus.
TAX BENEFIT
The members are eligible to enjoy the Producer Company tax benefits and are exempted from the tax as per the Income Tax Act, 1961 under section 10(1) which exempts the agricultural income.
SECTION 8 COMPANY REGISTRATION PROCEDURE
MORE SIMPLE THAN IT LOOKS!
1. PREPRATIONS OF DIGITAL SIGNATURE (DSC)
1st we apply for DSCs of all the Directors & members. Digital Signatures are required for signing all the documents while incorporating your Section 8 Micro Finance company.
2. FILING APPLICATION FOR DIRECTOR'S DIN
After successful allotment of directors’ DSCs, the next step is the application of DIN (Director Identification Number). It is the unique number allotted by the MCA to each of the directors of the Section 8 Company.
3. CHOOSING UNIQUE NAME FOR YOUR SECTION 8 COMPANY
Meanwhile applying for your DSCs, we help you in selecting Unique Name for your dream Section 8 Company. This process completes in a single day.
4. PREPARING FORMS AND DOCUMENTS
On the 2nd day, after the approval of the Company’s name, we prepare all the e-forms and other documents. Drafting of MOA & AOA comes under this step.
5. FILING E-FORMS WITH MCA
After completing all the formalities and documentation work, we upload e-forms along with the attachments prepared in step-4 on the MCA portal for approval.
6. ALLOTMENT OF COI, PAN & TAN
The department will allot Certificate of Incorporation for your Section 8 Microfinance Company along with company’s PAN & TAN. You can now open Current Bank Account and start the operations. CONGRATULATIONS…