What is Annual Compliance for Producer Company?
What is a Producer Company?
A Producer Company means a company that is formed with a purpose of engaging in any activity that is connected to or relatable to any primary produce. In other words, a Producer Company is a company that is formed with a primary objective of production, harvesting, procurement, grading, pooling, handling, marketing, selling, port of primary produce of the members or import of goods or services for their benefits.
Here, “produce” are the products that have been grown or produced by farming. This means that, a Producer Company primarily is engaged with agriculture and post-harvest processing activities.
Annual Compliance of the Producer Company
- Annual Compliance refers to specific forms that the Companies are required to file with the Registrar of the Companies during a year.
- Be it any type of company, to be adhere to the Annual ROC Compliance is mandatory.
- The Producer Company needs to file the Balance Sheet, P&L Account and other documents with MCA.
- Hence, being a Producer Company, you need to file your Annual Compliance Forms correctly on a regular basis in order to ensure that your company gets good legal standing. The Following are the main annual compliance for a Producer Company.
- Hold Annual General Meeting each financial year.
- Audit balance-sheet and profit and loss accounts of the Producer Company.
- File annual Return.
Advantages of Complying with the Annual Compliance for Producer Company
- Credibility and Transparency: Compliance is mandatory for Producer Company. When the company is regular with Annual Compliance, it raises its credibility and transparency of an organization.
- Active Status: Non-filing or defaults in complying with the Annual Filing for Producer Company may result in striking off the name of the Company by the Registrar of Company. Hence, Annual Compliance in helps in maintaining active status.
- Assures Investors and customers: Annual Compliance creates a competitive advantage for the Producer Company in the market. This can be useful to advertise the business and assure the investors and customers about the company’s business.
- Avoiding Penalties: Regularity in filing the Annual Compliance helps the Producer Company to avoid the heavy penalties.