Want to know how to be prepared and register your Dairy Farm as a company?

Pashushala.com has written this article for farmers and dairy entrepreneurs.

image source: https://www.flickr.com/photos

Let’s explore then.

How to be prepared:

  • Like any business before starting a business, it is always better to meet experience players in this case dairy farm owners to get an overview of the market size and difficulties involved.
  • Professional training for Agriculture universities and Training centres of Animal Husbandry Department or Krishi Vigyan Kendra is always recommended. You can also seek advice from National Dairy Research Institute. (NDRI), Karnal, Haryana.
  • If you want details on loan and subsidy, click here for a detailed article. For further information please visit near agriculture/cooperative banks for information
  • Read agriculture magazines, blogs and YouTube to get an idea of feed and fodder cultivation in your region and economical fodder solutions and heat management techniques.
  • If you need more information consult with local Veterinarians. Discuss and enquiry about breeds suitable to your geographical and climatic area, and economic life of the animal.

Get an overview of infrastructure:

Maintain a clean and healthy environment for the animals as this plays a pivotal role in the spread of diseases. In general, forty square feet of the shed and eighty square feet of open space is required per animal. The cattle shed must have a floor space of 10 feet by 5.5 feet per animal. sheds must have adequate air circulation and sprinklers to spray water. Water evaporation from the body leads to cooling of the body.

Know about GST

GST is not needed if turnover is not more than 40 lakhs. If you are planning for a big project then seek online expert advice like ClearTax or GST experts or charted accountant (CA) for dairy farm GST registration process.

  image source: https://www.pexels.com/


How to register your dairy farm as a company:

If you are starting a business you have 3 options:

·       Private Limited Company: It is a separate entity with an ability to own assets in its name, not related to the owner. There is shares concept.

·       Limited Liability Partnership: An LLP is a Partnership firm with a Limited liability on the partners. No shares can be issued.

·       Proprietorship Firm: It simply refers to a person who owns the business and is personally responsible for its debts.

Which one to choose?... It depends on your planning and future investment required for expansion.

In general, if you want to raise funds from an angel investor or venture capitalist firms then go with Private Limited Company. However, be aware of the compliances and tax rates.

It is recommended go with Partnership firm initially if you are starting business individually or with family members or friends. You require the Pan card and current bank account. Later you can convert to Private Limited company or else Limited Liability Partnership.

Note: I suggest to take consultation from existing business owners and government officials of Dairy farming or Gram Panchayat Office, before starting.

Note: It is recommended to register as a "company" and under "FSSAI", if your dairy farm's milk production is greater than 500 litres per day or annual turnover is up to Rs. 12 lakhs INR. Then the registrations are needed for future expansions.


Reference:

1. Article on starting a dairy farm in India: https://www.vethelplineindia.co.in/starting-a-dairy-farm-india/


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