Producer Company Registration

It is a one stop solution for all kind of Registration or Compliance Requirement.


What is Producer Company

Producer Company Registration

A producer company is a type of business organization in which farmers or producer groups come together to engage in collective agriculture production and marketing of their produce. The main aim of a producer company is to provide better prices, market access, and support services to its members, who are also its owners and shareholders. This type of company is regulated under the Companies Act of India and is governed by specific provisions and rules to protect the interests of its members.

A Producer Company as per the Companies Act, 2013 is a company that is formed by a group of producers for the purpose of handling the production, harvesting, grading, pooling, marketing, selling, and export of their produce. The producers in such a company are also its members and owners, and the company operates for their mutual benefit and advancement.

Minimum Requirements to Register a Producer Company

For Producer Company Registration following requirements must met: -

Minimum number of members and directors:

The minimum number of members must be 10, with no maximum limit. The company must have a board of directors consisting of a minimum of 5 and a maximum of 15 directors.

Members/Directors must be Producers

All the members and directors must be producers.

Registered Office

The company must have a registered office. The address of the registered office must be verified and confirmed by submitting valid address proofs such as an electricity bill, telephone bill and NOC/lease agreement.

Compliance with Regulations

The company must comply with all relevant regulations and laws, including the Companies Act and the provisions specific to producer companies. Producer companies are required to comply with various regulations related to production, processing, and marketing, which ensures that their products meet quality and safety standards.

Benefits of forming a Producer company:

Limited Liability:

In a Producer Company, the liability of the members is limited to the amount of unpaid share capital held by them, and they cannot be held personally liable for any debts or obligations of the company. This means that the personal assets of the members are protected, and they are not at risk in case the company faces financial difficulties. Limited liability is one of the key advantages of registering a Producer Company, as it provides a safe and secure way for the members to participate in the business without risking their personal assets. This makes it an attractive option for farmers and other primary producers who want to collaborate and pool their resources for the common good.

Raising Capital:

A producer company has the ability to raise capital through equity or debt financing, that makes easier for it to carry out its business activities and expand. The government provides various schemes and subsidies for producer companies, which can help them to raise capital. Producer companies with a high growth potential may attract venture capital investments from investors.

Improved Bargaining Power:

By forming a producer company, members can pool their resources and negotiate better terms with buyers and suppliers, thus increasing their bargaining power. Better Prices by pooling resources and bargaining collectively, a producer company can secure better prices for its member’s produce.

Access to credit:

Producer companies can access credit from banks and financial institutions at competitive rates, allowing them to finance their operations and activities. Producer companies can obtain credit from suppliers and vendors, who may be willing to extend credit based on the company's reputation and creditworthiness.

Increased efficiency:

Increased efficiency in a farmer producer company can be achieved by implementing modern agricultural practices, using advanced technology for farming and processing, improving supply chain management, promoting transparency and accountability, providing training and support to farmers, and establishing strong relationships with buyers and suppliers. Additionally, effective communication and collaboration among all stakeholders can also contribute to increased efficiency.

Improved market access:

A producer company can provide its members with improved market access and a wider range of customers, allowing them to sell their products at better prices and improve their livelihoods. It is important for producer companies to identify and prioritize market access opportunities that align with their capabilities, goals, and values, and to continuously monitor and adapt to market dynamics to maintain their competitiveness.

Professional management:

A producer company can engage professional managers to carry out its operations, improving its overall management and efficiency. Professional management can help the company maintain good governance practices and comply with regulatory requirements, which can enhance the company's credibility and reputation.

Document required for producer company registration:

From All Directors and Shareholders

i. Copy of PAN Card

ii. Copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity Bill/Water Bill etc.

iii. Copy of Voter's ID/Passport/Driver's License/Aadhaar Card

iv. Passport-sized photograph of all directors and shareholders

v. Producer certificate of all Members/ Directors.

vi. Khasra/Khatauni of all Members/Directors

vii. Mail id and Mobile No.

viii. Shareholding details

For Proposed Registered Office

i. Copy of any Utility bill

ii. Copy of NOC from the owner.

Procedure to form producer company:


Obtain digital signature certificate (DSC)

The first step for registration of producer company is application of a digital signature. Digital signature is a secure electronic signature used to verify the authenticity of digital documents. Digital Signature Certificate is commonly known as DSC, is issued by the Certifying Authority (CA) in token form and is valid for one or two years.


File the company name

Before filling application for Incorporation of the company it is very important to choose one unique name for the company. The name availability can be checked at the MCA portal. Spice+ Part A form is used for the Reservation of the name of the company.


Drafts the documents

After the Reservation of the name, we will draft the documents required for company registration. We will draft MOA and AOA and all other legal documents required for company registration.


Filling of Incorporation forms

Once the name of the company is reserved and required documents are drafted and signed. The next step is filling of form Spice+ Part B form. In this form we can apply for: -

  • Incorporation Certificate
  • Application for DIN
  • PAN Application
  • TAN Application
  • GSTIN Application
  • EPFO Registration
  • ESIC Registration
  • Bank Account Opening
  • Profession Tax Registration (only for Maharashtra)

Issue of certificate of incorporation (COI)

After filling of the incorporation forms the registrar will verify all the documents filed. After his satisfaction, the registrar issues the Certificate of Incorporation by providing signature in electronic form.

Frequently ask question

What is a producer company?

A producer company is a type of business organization that is formed by a group of producers with the aim of collectively producing, harvesting, and marketing their products.

What are the benefits of a producer company?

The benefits of a producer company include increased bargaining power, access to better technology and resources, reduced costs, improved quality of products and services, and increased profits.

Who can form a producer company?

Any 10 or more producers (individuals) can join together to form a producer company but there is no upper limit on the number of members. Or, any 2 or more producer institutions can form a producer company.

What is the process for incorporating a producer company?

The process for incorporating a producer company involves obtaining digital signatures, submitting the Memorandum of Association and Articles of Association to the Registrar of Companies, obtaining a certificate of incorporation, and obtaining a PAN and TAN.

How much time is required for Producer Company Registration?

Normally 7-10 days are required for Producer company Registration.

What is the minimum number of directors required for Producer Company?

Minimum 5 Directors are required for Producer company Registration. Maximum 15 directors can be there in case of producer company.

What is the role of a board of directors in a producer company?

The board of directors in a producer company is responsible for managing the company's operations, making important decisions, and ensuring that the company is running in the best interests of its members.

How does a producer company raise capital?

A producer company can raise capital through the sale of shares to its members, through loans from financial institutions, or by issuing bonds or debentures.

What is the role of a general meeting in a producer company?

The general meeting in a producer company is a forum for its members to discuss important issues and make decisions about the company's operations and future direction.

Whether appointment of Chief Executive is mandatory?

Yes, every Producer Company shall have a full time Chief Executive, by whatever name called, to be appointed by the Board from amongst persons other than Members.

How can help me in running Producer Company?

We have a team of qualified and experienced professionals who are dealing in Producer Company Registration and compliance Services. Our Team will help you in registering and running producer company.