Definition and Legal Framework
A legal framework refers to the structured set of rules, regulations, and principles established by a governing body to ensure justice, order, and equality within a society. It encompasses laws, policies, and guidelines that govern individual and institutional behavior, protecting rights and resolving disputes. Legal frameworks derive their authority from constitutions, statutes, regulations, and judicial interpretations.
The definition of a legal framework varies by jurisdiction but typically aligns with the principles of fairness, transparency, and enforceability. It sets boundaries for actions, defines legal responsibilities, and establishes penalties for non-compliance.
Internationally, legal frameworks are influenced by treaties and conventions, ensuring uniformity in areas like human rights, trade, and environmental protection. Domestically, they are tailored to align with the cultural, political, and social values of a nation.
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A producer business is defined as
- A legally organized organization made up mainly of farmers and agriculturalists.
- Founded by the government to help raise the standard of living and profitability of Indian farmers and agriculturalists.
- Governed by the Companies Act of 1956, created as independent private businesses.
Objectives:
- Primary production along with related tasks like harvesting, selling, or production.
Incorporation Requirements
- Possible for farmers or agriculturists with at least ten producers, five directors, and a minimum capital of Rs. 500,000.
Governing Sections
- Sections Dedicated to Producer Company Registration.
- It is majorly Governed by Chapter IXA of the Companies Act 1956.
- it may not be specifically covered by any provisions of the Companies Act 2013.
- Section 465 of the 2013 Companies Act.
- Part IXA of the Companies Act 1956 applies as if the Companies Act 1956 had not been repealed until a specific Act is legislated for Producer Companies.
Authorized Activities:
- Production, processing, harvesting, purchasing, pooling, grading, handling, selling, marketing, and exporting members' primary produce or importing products or services for their mutual benefit.
- Providing research and development, technical and consulting services, training and education, and any other endeavors that further the interests of Members.
- Production, transmission, distribution, and preservation of energy as well as communication pertaining to basic produce, the restoration of natural water and land reserves, and their utilization.
- Promoting charitable financial services, welfare initiatives, and insurance for farmers and their primary goods.
Documents Required
- You need self-attested PAN cards of members and directors.
- Passport-sized colored photos of directors and members (2x2).
- Self-attested identification documents (valid passport, voter ID, Aadhar card, or valid driver’s license).
- Self-attested address proof (bank statement, electricity bill, phone bill, or mobile bill not older than two months).
- Proof of business address (recent utility bill or letter of authorization from the property owner).
- Additional documents for subscribers with jamabandi, Khasra, or Katuni.
- Verified producer certificate from an agriculture officer, patwari, SDM, district administrator, tehsildar, or agriculture officer.
Details Needed
- Total number of shares subscribed by members, authorized and paid-up share capital of the proposed business
- Date of Birth and Duration of Residence at Current Residential Address for Directors and Members.
- Director and member job titles.
- Purpose or line of work of the planned enterprise.
- Education backgrounds of Members and Directors.
- Email addresses and contact details for the directors and members.
Registration Procedure
- Request Application for Reservation
- Apply for name reservation using the web services (SPICe+) at www.mca.gov.in and pay the relevant fees.
- Confirm that the name is available on MCA and is not already registered as a trademark or another name under the class of work.
- SPICe+ Part A and B: Businesses may reserve one or more names for SPICe+ Part A. Submit a joint application for a name incorporation and other integrated services by filling out Parts A and B.
- Build Part B of SPICe
- Complete Part B of SPICe
- Convert SPICe+ Form to PDF
- Convert the SPICe+ form to PDF format to attach the DSC
- Upload to Ministry of Corporate Affairs
- Upload the form to the Ministry of Corporate Affairs once the DSC has been attached
- Convert SPICe+ Form to PDF
All subscribers and the company’s first directors’ declarations currently filed in Form INC-9 will be automatically generated in PDF format and must be submitted electronically.
Other Requirements
- SRN not required: SRN will be shown automatically when Part B is filed after Part A.
- Newly incorporated businesses must register with the ESIC and EPFO (mandatory registration).
- Professional Registration for Maharashtra: All recently incorporated businesses must register for profession tax.
- Bank account application: Starting February 23, 2020, all recently incorporated companies must file an application for a bank account through the AGILE-PRO portal.
Submission of Statutory Returns
- Only mandatory when specified threshold limits are exceeded for businesses that have recently incorporated through SPICE+ and obtained an EPFO or ESI number.
FAQ's
A group of farmers and agriculturalists who have legally united with the goal of raising their standard of living and increasing their profits.
five directors ten producers and a minimum capital of Rs. 500000 are required.
Production processing marketing selling and exporting of members primary produce are among the activities.
Chapter IXA of the Companies Act of 1956 governs this with the Companies Act of 2013 providing transitional provisions.
Name reservations filling out and submitting the SPICe+ form attaching the DSC and uploading to the Ministry of Corporate Affairs are the steps in the process.