Producer Company

Special entity for Producers

Producer Company

What is a Producer Company?

The Companies Act separately defines the Producer Company. The Producer Company can only carry on the business of Primary Produce as defined under the Act. Only the producers can start a producer company. Here Producer means any person who is engaged in the provided business and who has the proof of being a producer.

Producer Company can be registered as a Private Limited Company. But the limit of 200 members as in Private Limited Company will not apply to a Producer Company. For Producer Company registration minimum of five directors are required.  And there must be at least 10 individuals who will be the members or two or more producer institutions as members.

Main object of the producer company must be from the following list of activities:

  • To produce, harvest, procure, grading, pooling, handling, marketing, and selling of primary produce. It includes activities such as animal husbandry, horticulture, floriculture, pisciculture, viticulture, forestry, forest products, revegetation, bee raising, and farming plantation products. It also includes persons engaged in handloom, handicraft and other cottage industries.
  • Any by-product of the above activities.
  • Manufacturing and selling of machinery or equipment to its members.
  • Providing education, training, technical, research & development for the promotion of the interest of its members.
  • To provide insurance to producers or their produce.
  • Generation, transmission, and distribution of power, revitalization of land and water resources, their use, conservation, and communications relatable to primary produce.
  • To provide welfare benefits to its members.
  • Any other ancillary activities to promote the principles of mutuality and mutual assistance amongst the Members.

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Plans of Producer Company

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  • 5 DIN (Director Identification Number)
  • 10 DSC (Digital Signature)
  • Drafting of MOA, AOA and other incorporation documents
  • Incorporation of Company via Spice+
  • Stamp duty inclusive up to Authorized capital of Rs.1 Lakh
  • PAN & TAN
  • EPFO
  • ESIC
  • Professional Tax (Maharashtra & Karnataka only)
  • Bank Account
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Benefits of Producer Company

Corporate Entity

Corporate Entity

By starting the business under a producer company, adds the benefit of a separate legal entity. It can avail of all the benefits available to a Private Limited Company which will not be available in case of doing business individually or in a Cooperative Society.

Benefits Limited to its Members

Benefits Limited to its Members

A Producer Company is like “By the people”, “to the people” and “for the people”. So Producer Company is only for the benefits of its members. So it is “By the members”, “to the members” and “for the members”.

Financial Assistance to Company

Financial Assistance to Company

A producer company can get financial assistance from NABARD.

Financial Assistance to its Members

Financial Assistance to its Members

Members can avail credit from the company in relation to the business for a maximum period of 6 months. Members also can avail loans & advances against security which is repayable in a maximum period of 7 years

Availing Government Contracts

Availing Government Contracts

There are some mandatory requirements of the Government for offering contracts. And one of the requirements is to have a corporate registered entity. Hence, a Producer Company can easily get Government contracts.

No Minimal Capital

No Minimal Capital

A Producer Company also does not require a specific minimum capital for the incorporation. It can register a producer company with any amount of capital.

Required Documents for Producer Company

The documents required for company registration are categorized as under

For Directors and SubscribersFor Registered office
Permanent Account Number (PAN)Business address proof(Electricity bill/Telephone bill/Gas bill/Mobile bill- not older than 2 months)
Producer certificate(certified by tehsildar / agriculture officer / patwari / SDM / district administrator and Khasra / Khatauni) or Artician certificate(certified by concerned authority)or Weaver’s certificate(certified by concerned authority)No objection certificate from the owner
Photo Identity proof (Adhar card/Driving License/Election card/Passport)Rent agreement (if rented)
Residential address proof (Bank statement/Electricity bill/Telephone bill/Gas bill/Mobile bill- not older than 2 months)
Passport size photograph

Procedure Of Registration Of Producer Company

  • Obtaining Digital Signature (DSC)
  • Checking the Name availability
  • Drafting of company registration documents
  • Filing of incorporation forms with MCA

Immediate Post Incorporation Compliance

  • Conducting first board meeting within 30 days of incorporation for the appointment of Auditor
  • Opening of bank account
  • Deposit the amount of subscribed share capital in the current account of the company
  • Filing form for the commencement of business

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Producer Company


A Producer Company means a company carrying the business of primary produce as mentioned above under the main object of the Producer Company. And its benefits are limited to its members only.

The incorporation process only takes 12-15(subject to government processing time) working days.

The objects which are listed above can be carried on by a Producer Company.

Yes, Producer Company must use the word “Producer Company Limited” in its name.

A group of individuals who are certified producers or producer institutions or a combination of both can start a Producer Company.

Only the certified producers such as Farmers or Articians or weavers who possess the certificate of being producers from the concerned authority can become the members of the Producer Company.

As per amendment in the Companies Act, there is no minimum capital requirement to start a Producer Company. It can be started with any amount of capital.

To register a Producer Company at-least 10 individuals or 2 or more producer institutions are required as members.

There is no maximum limit for the number of members in a Producer Company. There can be any number of members in a Producer Company.

For Producer Company registration minimum of 5 Directors are required.

To avail the benefit of Producer Company such as financial assistance from NABARD, financial assistance, and credit facilities to its members, to procure government contracts. Further, there is no maximum limit for the number of members alike in a Private Limited Company.

The registration process of a Producer Company will be similar to a Private Limited Company.

For incorporation of a Producer Company the KYC documents of members and directors are required. Furthermore, the Producer Certificate (certified by tehsildar/agriculture officer/patwari/SDM/district administrator and Khasra/ Khatauni) or Articiancertificate (certified by concerned authority)orWeaver’s certificate (certified by concerned authority) is required for all members.

No, only the Producers can invest in a Producer Company.

No, DSC of subscribers is not required. DSC is only required for the directors.

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