Producer Company

A Producer is any person engaged in any close-knit or related activity to the primary producers. A Producer Company is thus an umbrella term that includes all of the following.

Producing, harvesting, procurement, grading, pooling, handling, marketing, selling, exporting the primary producers of the members, or the imports of goods or services.

Producer Company Aims at

The producer company primarily deals with the production of its active members. It is allowed to carry on any of the following activities by itself or through other entities on behalf of the members.

  • Processing includes preserving, drying, distilling, brewing, vinting, canning, and packaging its members' produce.
  • Manufacture, sale, or supply of machinery, equipment, or consumables mainly to its members
  • Provide education to the mutual assistance principle to its members and others
  • Render technical services, consultancy services, training, research and development, and all other activities to promote its members' interests.
  • Activities for the promotion of the interest of its members
  • Generating, transmitting, and distributing power, revitalizing land and water resources, using conservation and communication, are relatable to primary produce.
  • Insurance of producers or their primary produce
  • Promoting techniques of mutuality and mutual assistance
  • Welfare measures or facilities for the benefit of members as decided by the board
  • Any other activity, ancillary or identical to any of the actions which promote the principles of mutual assistance among the members in any different manner
  • Financing of procurement, processing, marketing, or other activities which include extending of the credit facilities or any other financial services to its members.

How to Incorporate a Producer Company in India?

The registration process for Producer Company and Private Limited Company is very similar.

  • The first step is to obtain the DSC and DIN for the Producer Company's proposed first Directors.
  • An application for name reservation can be filed with the Registrar of Companies (ROC) after obtaining the DSC and DIN.
    The name should end with 'Producer Limited Company'.
  • After receiving the ROC's name approval, file the incorporation application in the prescribed format for incorporating the Producer company.
  • The Certificate of Incorporation is issued if the registrar is satisfied with the application for the Incorporation of the Producer company.

The functioning of the producer company is similar to the Private Limited company. But unlike the Private Limited companies, there is no limit on the number of members.

Even if the Producer Company's name ends with the words "Producer Limited Company", it shall under no circumstance become or be deemed a public limited company.

Documents Required for Producer Company Registration

For Directors and Shareholders

  • Scanned Copy of PAN Card
  • Scanned copy of Voter’s Id/ Passport/ Driver’s license
  • Scanned copy of the latest bank statement/ Telephone or mobile bill/ electricity or gas bill
  • Passport size photograph

For the Registered Office

  • Scanned copy of the Latest Bank Statement/ Telephone bill or Gas bill
  • Scanned copy of the notarized rental agreement
  • Scanned copy of the NOC from the property owner
  • Scanned copy of sale deed or property deed

Types of Producer Companies

  • 1

    Production Businesses

    Production, Procurement manufacture of its members and others' primary producer is the producer companies' primary function.

  • 2

    Marketing Businesses

    A business involved in the marketing or promoting the primary produce or provision of education services to members and others can also constitute itself as a Producer company.

  • 3

    Technical Service

    Any business that offers technical assistance to the producers, Provides training and educational services, or conducting research and development can register as a Producer in India.

  • 4

    Finance Business

    A business financing producing activities then be it production, or marketing r development it can register itself as a producer company.

  • 5

    Infrastructure business

    The business involved in providing infrastructure to the producers, whether in the form of electricity, water resources, irrigation techniques, or consultation regarding the same, may also constitute themself as a Producer company.

What are the Benefits of Registering Producer Companies?

Producer Company - Key features

Limited Liability

The members of a producer company have unlimited liability as the company is an entity in itself. The amount invested in the business would be lost, and the directors' property would be safe.

Better Management

Rather than a single farmer managing their entire business, producer companies' work is divided among the directors. The entity is governed by the Management Board, which has a tenure of five years.

A producer company has a separate legal existence, which means that it is not affected by any of its members' death.

NABARD Loan for Producer Companies

Producer Companies were introduced to allow farmers cooperatives to function as a corporate entity under the MCA. Here we are going to talk about the loan provided by NABARD for a producer company in India.

Producer Organization Development Fund

  • NABARD set up an Rs. 50 crore Producer Organization Development for supporting producer organizations and adopting a flexible approach to meet the producers' needs.
  • This scheme grants financial support in the form of loans or grants provided for any registered Producer Company. MACS, Industrial Cooperative Societies, and other registered federations set up by the producers.
  • This PODF Producer Organization Development Fund will support the producers' organization or producer companies by providing credit support, improving capacity, and building market linkage.
  • In this scheme, activities fall within the agriculture, allied, and non-farm sectors. Various activities like harvesting, storage, processing, packaging, and or marketing of the produce/ product are eligible for support under the PDOF fund.
  • The Producer Company should be formed by the primary producers of agriculture and the non-farm sector. The producer organization or company must only for the benefit of the producers.
  • Further, the producer company's shares cannot be sold to non-producers and if an existing member wants to leave the producer company.
  • Shares can only be purchased either by existing producers or by enrolling a new primary producer.


how many peoples are required to register a producer company?

A minimum of five people are required to register a producer company in India.

What are the documents required for registration?

Identity proof and address proof is mandatory for all the proposed Directors of the Producer Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.

How long will it take to incorporate a Producer Company?

The time taken for registration will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy registration, please choose a unique name for your Company and ensure you have all the required documents prior to starting the registration process.

How long is the registration of the Company valid for?

Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and maybe struck off from the register after a period of time. A struck-off Company can be revived for a period of upto 20 years.

What is a Digital Signature Certificate?

A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature. Hence, a Digital Signature is required for all Directors of a proposed Producer Company.

What is Director Identification Number (DIN)?

Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.

What are the requirements to be a Director?

The Director needs to be over 18 years of age and must be a natural person. The Director must be involved in farming activities.

Is an office required for starting a Producer Company?

An address in India where the registered office of the Company will be situated is required. The premises can be a commercial / agricultural / residential where communication from the MCA will be received.
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