Producer Company Registration


All Inclusive Fees

(EMI: Rs.4333.38 for 12 months)*




Producer Company Registration

Producer Company mean any person engaged any activity connected with or relatable to any primary produce . The objective behind the incorporation of Producer Company is to production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary produce of the Members or import of goods or services and other related activities for their benefit. Producer Company must deal primarily with produce of active Members and is allowed to carry activities by itself or through other entities- on the behalf of the members of Producer Company can be registered by any of following combination by complying with the prescribed limited formalities of the Companies Act, 2013

*Ten or more individuals, each of them is producer
* Ten or more individuals and producer institution
* A combination of ten or more individuals and producer institution

Producer Companies are those companies where minimum ten members are required and there is no limit for maximum number of members. A Producer company provides limited liability to its members. Under any circumstance, whatsoever shall not become or be deemed to become a public limited company. A minimum of five Directors are required for establishing a Producer Company.

With agriculture being the mainstay of the Indian economy, this sector employs more than 50% of India’s total workforce and contributes almost 17-18% to the country’s GDP.

Bearing in mind the persistent issues of farmers and agriculturalists (collectively termed “Producers”) in India, like agricultural labour, technological advancements, policy changes, etc., and to bring in better governance and channelize the agricultural activities, the concept of “Producer company” was introduced in 2002.


A producer company can be defined as a legally recognized body of farmers/ agriculturists with the aim to improve the standard of their living, and ensure a good status of their available support, incomes and profitability. Under Companies Act 2013, a Producer Company can be formed by

  • 10 individuals (or more) or
  • 2 institutions (or more) or
  • by a combination of both (10 individuals and 2 institutions) having their business objective as one of the following:

of the primary produce of the Members or import of goods or services for their benefit.

Before we proceed further, let’s try to understand what exactly a producer and producer


Producer Company may carry on any of the activities as specified below either by itself or through other institution

  • Processing

This will include preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its Members;

  • Manufacturing and Selling

It will help in manufacturing, sale or supply of machinery, equipment or consumables mainly to its Members;

  • Assistance to Members

Producer company helps in providing education on the mutual assistance principles to its Members and others;

  • Promotional Activities

Producer company helps in rendering technical services, consultancy services, training, research and development and all other activities for promotion of the interests of its Members;

  • Conserving Primary Produce

One of the major activity is generation, transmission and distribution of power, revitalisation of land and water resources, their use, conservation and communications relatable to primary produce

  • Insurance

Producer company take care of insurance of producers or their primary produce;

  • Principles of Mutuality

Producer company promotes techniques of mutuality and mutual assistance amongst the Members

  • Financial Assistance

The most important objective of Producer Company is financing of procurement, processing, marketing or other activities by extending of credit facilities or any other financial services to its Members.


The main purpose of the Producer Company is to form a farmer society in the form of a company and conversion of an existing co-operative society into an organized company. For this, they perform certain beneficial activities like production, procurement, pooling, harvesting, grading, handling, marketing, selling and import/export of the primary producers of all the members.

Here are some important benefits of registering a Farmer Producer Company in India:

Let’s try to understand the advantages of Producer Company in detail:

  1. Separate Legal Entity

Just like any other type of company, a producer company is a separate legal entity under the Act. Consequently, a producer organization has a wide lawful limit and can claim property and furthermore acquire obligations. The individuals (Directors) of a producer organization have no obligation to the lenders of a producer organization.

  1. Good Governance

Since the Government is completely responsible for keeping the interest of the members, it ultimately helps in success of the Producer Company.

  1. Better Facilities:

A Producer Company is a great stage for the primary farmers to get better facilities which they are unable to get from the other mediums. Members who work in producer companies can easily access government services like Pension, loan, Scholarship etc.

  1. Tax Benefits:

In the union budget of 2018-2019, it was mentioned that 100% deduction will be allowed to those companies which register themselves as a farmer-producer companies with an annual turnover of Rs. 100 crores and earning profit out of the same. Hence, they need not to pay any tax. Since farmers are the pillars of our economy, government has extended a 100% deduction to farmer Producer Company.

  1. Simple Management:

Registration as a producer company is quite an easy process. The company can make changes in the Board of Management through filing some simple forms with the concerned ROC.

  1. Loans and Investment:

The members of the producer companies are initial producers, hence they need finance from time to time. NARBAD bank is inaugurated by the government for the farmers’ producer companies. This bank offers loans to the farmers for a period not extending six months to meets the needs of the procedure companies. In the event, if the members of the procedure company need finance for farming they can effortlessly take from the NARBARD bank for a specific period of time.

  1. Continuous Existence

A producer company has ‘unending progression’, which means that it has continuous presence until it is legitimately wound up. A producer company is unaffected by the death or other take-offs of any kind.

  1. Maximum dividend

Every Member shall on the basis of share capital contributed, entitled to receive maximum dividend as may be specified by the articles

  1. Internal Audit

Every Producer Company shall have internal audit of its accounts carried out, at such interval and in such manner as may be specified in articles by a chartered accountant.


Following checklist needs to be adhere to before we proceed for the registration of a Producer Company:

  • Any 10 or more producers (Individuals) can join together to form a production company but there is no upper limit on the number of members, or
  • Any 2 or more producer institutions can form a producer company
  • Minimum capital of Rs. 500,000 is required to incorporate a producer company.
  • There should be minimum 5 directors (maximum of 15) in a producer company.
  • There must be a full time chief executive officer to look after the management of the company.

Important Note: Producer Company can never be converted into a public company, however, it can be converted into a multi-state co-operative society.

Documents Required

Here is a list of documents which are required from directors and Producer Company for registration:

Documents of Directors:

  • Copy of PAN Card: All the directors are required to make available their PAN at the time of registering Producer Company. PAN card acts as a prime ID proof.
  • Copy of Driving License/Voter ID:Directors can submit any one document out of Voter’s ID or Driver’s license.
  • Latest Bank Statement/Mobile or Telephone Bill (not older than two months): These documents act as the residence proof of directors and must contain the name of director.
  • Passport size Photograph:Directors should also provide their passport size photograph, preferably on white background.

Documents of Producer Company:

  • Proof of Registered Office Address such as Electricity Bill etc.
  • Scanned copies of NOC and Rent Agreement in case the premise is a rented one

Registration Procedure

The process of registering a Producer Company is somewhat similar to that of a Private Limited Company. Briefly, the following is the standard procedure:

  • Digital Signature (DSC) and Director Identification Number (DIN) must be obtained first for the proposed first Directors of the company.
  • Once, Digital Signature (DSC) and Director Identification Number (DIN) are obtained, an application for name reservation is to be filed with the relevant Registrar of Companies (ROC).
  • The name of a producer company must end with the words “Producer Limited Company”.
  • Once, the suggested name is approved by the Registrar of Companies (ROC), an application for incorporation is to be filed in the prescribed format for the incorporation of the Producer Company.
  • Once the Registrar is satisfied with the application and the required documents filed for incorporation of Producer Company, he will approve the same and issue Certificate of Incorporation.

Now let’s try to understand the above process of Registration of Producer Company in detail:

Step 1: Apply for Digital Signature Certificate (DSC)

Since the process is completely online, hence all those authorised signatories/directors who needs to sign the online incorporation documents must apply for Digital Signature Certificate.

Step 2: Apply for Director Identification Number (DIN)

DIN can be applied along with the company registration application form i.e. SPICE -32. However, maximum 3 Directors can obtain DIN along with SPICE 32.

In case the subscriber is already holding a valid DIN, and the particular provided have been updated as on date of application and the declaration to this effect is given in the application, the proof of identity and residence need not be attached.

Step 3: Apply for Name Approval through RUN

For the name approval step, an application is filed in the prescribed Form RUN (Reserve Unique Name) with the Ministry of Corporate Affairs. Please note that a minimum of 2 names at the time of incorporation are proposed.

Also, thename of a producer company must end with the words “Producer Limited Company”.

Step 4: Drafting and submitting final incorporation documents

After name approval, one needs KYC, and other prescribed documents of Directors & Shareholders. Also, various consent forms and online e-documents like SPICe form along with MOA, AOA and AGILE needs to be filed to Ministry of Corporate Affairs (MCA)

Step 5: Receiving Certificate of Incorporation and opening Bank Account

After approval of incorporation documents, you will receive your Certificate of Incorporation including your Company Identification Number (CIN) along with PAN and TAN of your company. Post this you can open a bank account on the name of your company and can launch your business.

How can we help in getting registration?

Our services include the following:

  • Assured Name approval from the Ministry of Corporate Affairs (MCA)
  • Regular updates during the incorporation process
  • DSC’s and DIN for subscribers and directors
  • Filling of company incorporation e-forms with the MCA
  • Drafting objective, Memorandum of Association (MOA) and Article of Association (AOA)
  • PAN and TAN
  • Business plan guidance
  • The legal agreement, corporate drafts set, letters on requirement basis.


01. What is Producer Company?

A producer company can be defined as a legally recognized body of farmers/ agriculturists with the aim to improve the standard of their living, and ensure a good status of their available support, incomes and profitability.

02. How many members are required to form a Producer Company?

Any one of the following combination can form a Producer Company:

  • Any ten or more individuals each of them being a producer, or
  • Any two or more Producer Institutions, or
  • Combination of 10 or more individuals and Producer Institutions

03. What is the minimum number of directors required for formation ofProducer Company?

Every producercompany shall have at least five and not more than fifteen directors. However, in case of an inter-state co-operative society incorporated as a ProducerCompany, such company may have more than fifteen directors for a period ofone year from the date of its incorporation as a Producer Company.

04. Whether appointment of Chief Executive is mandatory?

Yes, as per Section 581W of the Companies Act, 1956, every Producer Companyshall have a full time Chief Executive, by whatever name called, to be appointedby the Board from amongst persons other than Members.

05. Who is the Chief Executive of a Producer Company?

The Chief Executive Officer shall be an ex-officio director and shall not retire byrotation. The qualifications, experience and the terms and conditions of Chief ExecutiveOfficer shall be such as may be determined by the Board subject to theprovisions contained in the Articles. The chief executive, who shall be entrustedwith substantial powers of the management, shall manage the affairs of theProducer Company but subject to the superintendence, direction and controlof the Board and is accountable to the Board for the performance of theProducer Company. Further, Chief Executive Officerneed not be a Producer

06.A producer company is governed under which law?

The formation and regulation of Producer Company is governed under theprovisions of Sections 581A to 581ZL of Companies Act, 1956, read with CompaniesAct, 2013, and the rules made thereunder.

07.Whether Producer Company is Private Company or Public Company?

As the name of the Company ends with Producer Company Limited it seems tobe a Public Company but as per clause (5) of the section 581C of Companies Act,1956, on registration the Producer Company shall become a body corporate as ifit is a Private Company and shall not under any circumstances deemed to be aPublic Company.

08.Whether the limit of 200 members is applicable to Producer Company?

As per clause (5) of the section 581C of Companies Act, 1956, the ProducerCompany shall become a body corporate as if it is a Private Company, without, however any limit to the number of members.

09. What if a member of the producer company ceased to be a primary producer?

As per clause (5) of section 581ZD, where the Board of a Producer Company issatisfied that a member of the producer ceased to be a primary producer, then the Boardshall direct the surrender of shares together with special rights, if any, to theProducer Company at par value or such other value as may be determined by theBoard.Provided that the Board shall not direct such surrender of shares unless theMember has been served with a written notice and given an opportunity of beingheard.

10. What are the types of shares which producer Company can issue?

As per section 581ZB of the Companies Act, 1956, the share capital of a ProducerCompany shall consist of equity shares only.

11. What is the Minimum Capital required for the Formation of Producer Company?

Minimum capital required for the formation of Producer Company is Rs. 5 Lakhs.

12. Will the books of a producer company need be auditing?

Yes, a producer company must have its books audited from its very first year. And in case turnover crosses Rs. 5 crores, it must employ a full-time company secretary to manage its affairs.