Producer Company Registration




Producer Company

Producer Company is registered under the companies’ act, 2013 which has the objective of production, procurement, harvesting, handling, marketing, selling, pooling and export of primary produce of members or the import of goods & services for the benefits but mind that it is not the case. It includes a variety of activities. It is not limited to only farming activities but it also includes in other sectors too such as primary, secondary and tertiary sectors too.






The producer company has established as a useful enterprise because it offers various tax benefits under various taxation schemes in the constitution of India. Apart from various taxation benefits it also helps in getting the advantage under various schemes established by the Ministry of corporate affairs. It is a great form of enterprise that has greatly benefited small time business personnel.

A group of ten or more people or two or more producers institutions or a combination of ten or more individuals can be considered and registered as a producer company when producer company have limited share capital, Minimum paid capital is Rupees five lakhs only, Minimum five directors and maximum fifteen directors, Minimum ten individuals or two producer institutions, Time period of director for holding an office shall range from one year to five years that subjects to the provision made in the AOA (Article of Association), No limit of maximum number of members, producer company cannot become a deemed public company under any situation. Thus, we see there are numerous advantages as well as disadvantages too such as no easy availability of credit, limited operations, etc.

It is not for big businesses that have a huge scale of operation be it marketing, packing grading, etc. This is so because their objectives are different and do not match with the objectives of a producer company. This is the reason why big companies do not form a Producer Company. A producer company is generally preferable for businesses that are small but work according to the objectives stated above.

All in all, Producer Company means a body corporate having objectives and activities so that it can be registered as a producer company. In Producer Company you can appoint an agriculturist member and accept deposits in the form of RD/FD as well as distribute loans to your farmers in return charge interest from them.

Types of producer companies in India


  • Marketing business

  • Production business

  • Financing business

  • Technical service business

  • Infrastructure business

Producer Company Registration requirement


1. Any of the following can incorporate a producer company

  • Ten or more individuals, each of them can be a producer or

  • Two or more producer institutions or

  • Combination of the above two.

2. The producer company shall have a minimum of 5 directors and a maximum of 15 directors. No limit of maximum members applies to these companies.

3. Minimum initial paid-up authorized capital will be 5 lakhs

4. A registered office address

5. DSC (Digital signature of certificate) of shareholders

6. DSC (Digital signature certificate) and DIN(Director identification number) of directors.

Advantages of Producer Company


  • It is a separate legal entity offering limited liability and perpetuity

  • The producer companies offer greater credibility than provided by an unregistered producer organization. It is governed by the central government.

  • Changes in the Board of Management (controls all activities of the company) of a producer company can easily be made just through filling some simple forms with ROC.

  • A producer company can accept deposits in the form of FD/RD and give maturity also distribute loans to its farmer and can charge reasonable interest from them.

  • Members of the producer company will be granted to get bonus shares in the same proportion to the shares that they hold.

Documents required for Producer company registration


  • Identity proof of directors & shareholders(Pan Card)

  • Proof of Registered office in India (Rental agreement, Electricity bill, Sale deed, Tax receipt, NOC (No Objective certificate) from landlord to use premises as the registered office.

  • Address proof of directors & shareholders (Passport, Aadhar, Bank statement, Electricity bill, etc and should not be more than 2 months old.

  • Signed Documents for incorporation (Signed Digital Signature Application documents in Hard Copy and Other incorporation documents should be signed and uploaded as soft copy)





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