How to register a Farm

Farm Questions
1

Hi All,

I would like to open a current account on my farm name to have proper accounting in place. I have approached near by bank for this and they have asked me to submit registration certificate. Does anyone aware of the process of registering a farm …?

Thanks,
Pavan

2

Dear Pavan,

Registration of Farm to open a Bank account is as good as a Firm Registration. Please decide if you wish to register your farm as sole Proprietor, partnership under the Registration of Firms or One person company, LLP or Private limited company as per the Companies Act.
You may get in touch with any company secretary or a CA for registration of firm.

3

It is only worth if you want to brand your products. otherwise registering will cost you these activities,book keeping, annual returns filing,inventory management(keeping account of tools,equipment,furniture etc)

If it is only for the sake of declaring your income for IT, just open an individual SB account, if your selling your products make an agreement in 200/- stamp paper and mention the values on that. This is what I am doing. for some I get check payments(from wel known buyers)

4

Sri, what it’s the stamp paper for? Can you explain?

Does a firm also become ineligible for farmer schemes?

5

stamp paper for an agreement between farmer and buyer. This is the one of means to show income from the land.

6

Thanks Sri & Purushom for enlightening me.

I will go for a separate saving account rather than making myself busy with this additional tasks.

Well, i would like to ask one more query, Do we register for VAT if we are selling our farm products to directly to retailers in the same state or other states…?