Producer Company Compliances

Producer Company Complainces

✅ Producer Company Compliances

A Producer Company is formed by farmers / agriculturists / producers to work together for better prices, shared resources, and collective growth.

Even though it works like a cooperative, legally it is treated as a company, so compliances are similar to a Private Limited Company — but with some special rules.

1️⃣ Mandatory Annual Compliances

✔ AOC-4 (Financial Statements)
Every Producer Company must file its annual accounts.

Due Date:

📅 30 September (for most companies, unless extended)

✔ MGT-7 (Annual Return)
Annual return containing member details, capital, directors etc.

Due Date:

📅 29 November (60 days from AGM)

✔ Annual General Meeting (AGM)
A Producer Company must hold 1 AGM every year.

Holding time:

📅 Within 6 months of financial year end

📅 Maximum gap allowed: 15 months between 2 AGMs

2️⃣ Board Meetings

✔ Minimum 4 board meetings in a year
✔ Gap between meetings: Max 120 days
✔ Minutes must be recorded

3️⃣ Statutory Audit (Compulsory)

Producer Company must be audited every year by a Chartered Accountant.
Audit is compulsory even if:

✔ No business
✔ No profit
✔ Farmer-based operations only

4️⃣ Income Tax Return (ITR-6)

All Producer Companies file ITR-6 (as they are treated like companies).
Audit is compulsory even if:

Due Dates:

• 📅 31 October → If accounts audited

• 📅 30 November → If Transfer Pricing applies

5️⃣ Special Compliances for Producer Companies

✔ 1. Patronage Bonus Rules
If bonus/benefit is given to members → must follow Articles of Association.

✔ 2. Limited Return (Dividend)
Producer Company can give limited return to members — rules must be followed.

✔ 3. Transfer of Shares
Shares can be transferred only among producer members, not outsiders.

✔ 4. Active Membership Check
Inactive members must be identified as per Articles.

6️⃣ ROC Event-Based Filings

These are required only when changes happen:

✔ Change in directors → DIR-12
✔ Change of registered office → INC-22
✔ Increase in share capital → SH-7
✔ Charge creation → CHG-1
✔ Appointment of auditor → ADT-1

7️⃣ GST Compliances (If applicable)

If Producer Company sells:

• crops
• dairy
• handmade products
• processed farm goods

Then GST may apply.

✔ File GSTR-1 & GSTR-3B
✔ Issue GST invoice
✔ Claim ITC if eligible

Some agricultural produce is exempt — must check classification.

8️⃣ TDS Compliances (If applicable)

If the company pays:

• Salaries
• Rent
• Professional fees
• Contractors

…it must:

✔ Deduct TDS
✔ Pay monthly
✔ File quarterly TDS returns

9️⃣ Books & Records Maintenance

A Producer Company must maintain:

✔ Cash book
✔ Ledgers
✔ Minutes book
✔ Asset register
✔ Member register
✔ Patronage register
✔ Invoices, vouchers & receipts

Good record-keeping = smooth audits

⭐ SUMMARY

Compliance	Required?
AOC-4	✔ Mandatory
MGT-7	✔ Mandatory
AGM	✔ 1 per year
Board Meetings	✔ 4 per year
Audit	✔ Compulsory
ITR-6	✔ Mandatory
GST/TDS	Only if applicable
Event Filings	When changes occur

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