Low-Cost Agricultural Business Registration

An Overview of Low-Cost Agricultural Business Registration in India

Online Legal India LogoBy Online Legal India Published On 18 Oct 2022 Category Business

India holds a fantastic position in the world economy regarding the agriculture sector and other agricultural commodities and products. The article just below contains exclusive and brief information regarding India's agriculture business. This article is dedicated to providing information regarding low-cost agriculture business registration in India to assist those interested.

Different Types of Companies can opt for low-cost Agriculture Businesses
 

  • Private Limited Company
  • One-Person Company
  • Public Limited Company
  • Producer Company
  • Limited Liability Partnership Company

Again, with correct guidance, agricultural-based businesses' service marks, patents, logos, & trademarks can be registered. In general, the majority of low-cost agricultural businesses' trademarks/company registrations or logos are registered under trademark class 31, trademark class 44, & other comparable classes.

Objectives of a Low-Cost Agricultural Company Registration
 

The primary objectives of low-cost agricultural business registration are discussed below:

  • The acquisition, production, harvest, grading, pooling, managing, marketing, selling, or export of a product or the import of services and goods for the advantage of the members.
  • Members' products are processed, including preserving, distilling, brewing, canning, and packaging.
  • Manufacturing, selling, or providing its members with machinery, equipment, or consumables.
  • Educating its members & other individuals on the ideals of mutual help.
  • Give technical assistance, consulting services, development and research training, and other services to members to increase their interest.
  • Power generation, transmission, and distribution of Water and land resource restoration, dialogue, and communication about primary produce
  • Primary products and their producers are insured.
  • Promotion of mutuality & mutual help techniques
  • Members' welfare measures
  • Any additional action that is related to or incidental to the above-mentioned goals.
  • Financing all operations, granting credit facilities, or improving members' financial situations.

Benefits of a low-cost agricultural company
 

A low-cost agricultural business is also defined as a hybrid of a cooperative society & a registered company. It excels in the distinctive aspects of a cooperative organisation, with a governance framework akin to that of a corporation. Such an entity is essentially a registered corporation that is served by a group of persons (often farmers) as its members.

The benefits of an agricultural company are as follows:

Deposit Acceptance
 

According to the current bylaws, the Producer Company may receive a deposit in the form of a set deposit or a recurring deposit.

Loan with Security
 

Farmer Producer Corporations are legally able to act as lending institutions. They can lend credit against fixed deposits, gold, and government securities.

Profit Distribution to Members
 

The low-cost agricultural company's profit or revenue remains inside the organisation and is split among the serving members.

There are no agricultural income taxes
 

As a result, no taxes are charged on the agricultural business's profits. Currently, these organisations are immune from any tax responsibilities imposed by the IT department.

Documents Required for the Agricultural Business
 

The following documents are necessary for the formation of low-cost Agricultural Businesses in India:

  • PAN and images of the current board of directors and shareholders
  • For directors, workers, and investors, Aadhar cards, driver's licenses, passports, & voter Cards are acceptable forms of identity.
  • Sarpanch letter/Khasra - Khatuni/Income Tax Return (Income tax return) with Agricultural Income and other documentation of a working member
  • Evidence of Registered Residence
  • Certificate of no objection from the owner, Proof of residency, and Rental Agreement
  • Legal Criteria for formation prior to incorporation
  • At least 10 suppliers must be registered with the firm.
  • If the proposed organisation wants to function as a private limited company, 
  • It must include between 5 and 15 managers and 200 employees.
  • An international cooperation society functioning as a farmer-farming business will have more than 15 Members for one year following the foundation of an agricultural business.

Low-Cost Agricultural Business Registration Process
 

To commence the incorporation procedure, the proposed member must submit an online application using the Spice+ e-form on the MCA site. The form is available in the MCA portal's services area, which the applicant can access after creating an account.

Spice+ e-form is an online business registration application separated into two sections.

Parts A and B

Part A allows the applicant to legalise the proposed name, whereas Part B provides the following services:

  • Incorporation
  • Allotment of DINs (Director Identification Numbers)
  • Permanent Account Number  Allotment
  • Allotment of TANs (Tax Account Numbers)
  • Registration with the EPFO
  • Registration for ESIC
  • GSTIN allocation
  • Profession Tax Registration
  • Opening of New Bank Account

Spice+ is an innovative integrated form that provides ten services from three distinct ministries at the federal and state levels. This e-form saves the applicant time and money while also simplifying the registration process. The Government of India has created the Spice+ e-form as part of the continuing effort to Ease Doing Business. The Ministry of Corporate Affairs normally grants the certificate of incorporation within thirty days of receiving the application.

Other Types of Business Registration
 

Choose Your Business Structure
 

This is among the most basic and foundational processes in registering a corporation anywhere around the globe. Choosing your firm's business structure will fundamentally decide the course your business wants & how it controls operations for the rest of its life. As a result, choosing the best business structure for your company's goals and desires becomes critical.

Getting a Digital Signature Certificate
 

A digital signature certificate is a method of verifying the validity of software or, in this example, a document. The Digital Signature is usually a replica of the physical signature. Still, it might also be a stamped seal that validates the validity of the document and provides significantly more intrinsic protection against impersonation.

Apply for Name Approval
 

The business name approval procedure must run easily and without objections, or else the entire company registration process will be halted. Use the RUN (Reserve Unique Name) e-form to submit for name clearance for Public Companies, Public Limited Companies, OPCs, NBFCs, and other entities. Alternatively, company owners can use the SPICe Form to submit for name approval.

Apply for Incorporation
 

The final stage in the company registration process is filing for incorporation, for which the MCA has provided specific paperwork.

Forms SPICe (INC-32) 

The SPICe forms simplify the establishment of Limited Companies (Public/Private/LLP/OPC) and expedite the following procedures.

  • Getting a DIN Name Reservation, 
  • Incorporation 
  • Pan Application, and 
  • TAN Number

Apply for MOA & AOA
 

The letters MoA and AoA stand for Memorandum of Association & Articles of Association, respectively. These two constitute the company's constitution. These two essentially establish the scope of the company's legal authorities, information about its commercial operations, and the company's connection with its shareholders.

Conclusion
 

Agriculture is a significant contributor to global GDP. Food is produced for millions and millions of people, and for the vast majority of India's population, it is the primary source of income. With the laws defined by the Indian government, the low-cost agriculture industry displays favourable growth; moreover, with the use of equipment and methods, the agriculture business is one of India's thriving markets.

Several sorts of low-cost agricultural businesses may be successfully run in India. There has lately been a tendency for companies to run effectively utilising an endless number of digital and internet platforms, and the government has supported this movement by digitising the methods of establishing a business in India.


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