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Producer Company Registration
What is a Producer Company?
A Producer Company is a legally recognized corporate entity formed by a group of farmers, agriculturists, or producers to improve their financial status, facilitate better income distribution, and enhance market opportunities. Governed under the Companies Act, 2013, it allows members to collectively engage in production, procurement, and marketing activities.
Prerequisites and Eligibility Conditions
Minimum Members: 10 individuals or 2 producer institutions.
Minimum Directors: 5 (with a maximum of 15).
Capital Requirement: No minimum capital requirement.
Registered Office Address: A valid business address is required.
Primary Business Activity: Agriculture, production, or related activities.
Objective of a Producer Company
The primary objective of a Producer Company is to enhance the income of farmers and producers by facilitating better market access, efficient production, and collective decision-making. Key objectives include:
Production, Harvesting & Processing – Engaging in activities related to primary produce.
Procurement & Marketing – Ensuring fair market prices and improved supply chain management.
Export & Import – Facilitating trade at national and international levels.
Education & Training – Enhancing skills of members for better business management.
Financial Services – Providing loans, credit, and financial aid to members.
Activities of a Producer Company
Manufacturing and Selling of Agricultural Products
Processing of Agricultural Goods (e.g., dairy, fishery, forestry, animal husbandry)
Procurement & Distribution of Inputs (e.g., seeds, fertilizers, equipment)
Export of Primary Produce
Advisory and Extension Services
Insurance and Credit Facilities to Members
Benefits of Registering a Producer Company
Limited Liability – Members are only liable to the extent of their shares.
Better Credit Facilities – Access to loans and financial assistance from banks.
Tax Benefits – Exemptions on agricultural income as per government policies.
Legal Recognition – Provides credibility and legal backing to producer groups.
Market Expansion – Helps in better market linkage and distribution of products.
Profit Distribution – Surplus profits can be distributed among members as dividends.
Government Support – Special incentives and subsidies for farmer-centric companies.
Disadvantages of a Producer Company
Strict Compliance Requirements – Annual filings, audits, and reporting are mandatory.
No Direct Public Investment – Cannot raise capital through IPOs.
Complex Formation Process – Requires multiple legal formalities.
Limited Operational Scope – Restricted to activities related to primary production.
Membership Structure of a Producer Company
A Producer Company can be formed by:
10 or more individuals engaged in primary production activities.
Two or more producer institutions (e.g., cooperative societies, farmer groups).
A combination of both individuals and institutions.
Each member contributes capital, and voting rights are based on membership rather than shareholding.
Governance Structure of a Producer Company
Board of Directors – Minimum 5 directors, maximum 15 directors.
Chief Executive Officer (CEO) – Appointed by the Board for management and administration.
General Body Meetings – Annual General Meetings (AGM) and other necessary meetings for decision-making.
Shareholding Structure – Only members can own shares; no external investors allowed.
Procedure for Producer Company Registration
Step 1: Obtain Digital Signature Certificate (DSC)
Directors must acquire DSC to sign incorporation documents digitally.
Step 2: Apply for Director Identification Number (DIN)
At least five directors must obtain a DIN through the MCA portal.
Step 3: Name Reservation
File the RUN (Reserve Unique Name) application with MCA.
The name must include “Producer Company Limited.”
Step 4: Drafting MOA & AOA
Memorandum of Association (MOA) – Outlines the company’s objectives.
Articles of Association (AOA) – Governs the internal management structure.
Step 5: File Incorporation Application
Submit SPICe+ (Simplified Proforma for Incorporating a Company Electronically Plus) form.
Required documents include:
Identity and address proof of members and directors.
MOA, AOA, and declaration from directors.
Registered office address proof.
Step 6: Certificate of Incorporation (COI)
Issued by the Registrar of Companies (ROC) upon verification.
Company receives Corporate Identification Number (CIN).
Step 7: PAN & TAN Application
Obtain Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN).
Step 8: Open a Business Bank Account
Required for financial transactions and investments.
Step 9: Compliance and Licenses
GST registration (if applicable).
Annual compliance and financial reporting.
Required Documents for Registration
Identity Proof – PAN Card of all directors and members.
Address Proof – Aadhaar Card, Passport, or Driving License.
Registered Office Proof – Utility bill (electricity, water, or property tax receipt).
NOC from Property Owner – If office premises are rented.
Bank Statement – Recent three-month statement as address proof.
MOA & AOA – Signed by all members.
Digital Signature Certificates (DSC) – For all directors.
Affidavit & Declaration – From directors regarding compliance with regulations.
Why Choose Humsabka Advisor for Producer Company Registration?
Expert Assistance – Seamless incorporation process.
Legal Compliance Support – Ensuring compliance with MCA guidelines.
Cost-Effective Solutions – Affordable registration packages.
Hassle-Free Documentation – We handle all paperwork and filings.
Ready to register your Producer Company? Contact Humsabka Advisor today!
Documents & Information required for Producer Company
- PAN Card of Directors & Subscribers
- Aadhar Card of Directors & Subscribers
- Bank Details of Directors & Subscribers
- Address Proof (Like Rent Agreement)
- Directors Declarations
- Mobile No. of Directors & Subscribers
- Email id of Directors & Subscribers
- Photo of Directors & Subscribers
- Utility Bill (like Electricity Bill)
- Director Consents
Comparison: Sole Proprietorship vs Partnership vs LLP vs Company
Producer Company Registration FAQ’s
What is a Producer Company?
A Producer Company is a legally recognized entity under the Companies Act, 2013, formed by farmers or producers to engage in production, harvesting, processing, procurement, grading, marketing, and selling of primary produce.
Who can register a Producer Company?
A Producer Company can be registered by:
- 10 or more individuals who are producers, OR
- 2 or more producer institutions, OR
- A combination of both individuals and institutions.
What are the objectives of a Producer Company?
The main objectives include:
- Enhancing the income of farmers/producers
- Facilitating better access to credit, inputs, and technology
- Engaging in processing, storage, and marketing of agricultural produce
What are the benefits of registering a Producer Company?
- Limited liability for members
- Legal recognition under the Companies Act
- Access to government subsidies & financial aid
- Better market opportunities for agricultural produce
- Ability to raise funds from banks and financial institutions
What are the eligibility requirements for forming a Producer Company?
- Minimum 10 producers (individuals) or 2 producer institutions
- At least 5 directors must be appointed
- The company must work towards producer welfare
What is the capital requirement for a Producer Company?
There is no mandatory minimum capital requirement, but having sufficient initial capital is advisable for smooth operations.
What documents are required for Producer Company registration?
- PAN and Aadhaar Card of all Directors and Members
- Address proof of Directors and Members
- Registered Office Address proof (Rent Agreement, Utility Bill, NOC)
- Digital Signature Certificate (DSC) for directors
- Memorandum of Association (MoA) & Articles of Association (AoA)
Can a Producer Company raise funds from the public?
No, a Producer Company cannot raise funds from the public through the stock exchange, but it can take loans from financial institutions or government schemes.
How long does it take to register a Producer Company?
The registration process usually takes 15-20 working days, depending on document verification and approvals from the Registrar of Companies (ROC).
What are the compliance requirements after registration?
- Conducting Annual General Meetings (AGM)
- Filing financial statements and annual returns with ROC
- Appointing an auditor
- Maintaining statutory books and records