Producer Company

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Overview Of Producer Company Registration

The agricultural industry is the backbone of Indian economy. 60% of India’s population relies on agricultural activities for their livelihood. But these primary producers and farmers struggle a lot to get their share of profit. Keeping their miserable condition in mind, the Government of India has come up with an expert committee, headed by Y.K. Alagh to look into the matter. In 2002, the committee brought the concept of Producer companies in the Indian economy. Since then, they are working with the motive to uplift Indian farmers and agriculturalists (collectively termed “Producers”)

What is the Aim behind Introducing Producer Company?

A legally formed company with the aim to improve the standard of living of farmers and agriculturists can be defined as a ‘Producer Company’. Producer Company is formed under the Companies Act, 2013 and as per the act it can be formed by 10 individuals (or more) or 2 institutions or more or by a combination of both (10 individuals and 2 institutions) having one of the following as their business objective:

  • Production
  • Harvesting
  • Procurement
  • Grading
  • Pooling
  • Handling
  • Marketing
  • Export
  • Selling

To form a Producer company, they have to obtain a Producer Company Registration as per the rules and regulations.

India is an agricultural-based country where more than 85% of people are dependent upon farm activities. Most of the farmers in India are small or marginal scale farmers holding less than 2 hectares of land. Low production and poor facilities make their life miserable and make them deprived of the latest technologies. Producer Company aims at empowering all the small and marginal scale farmers so that their economies can be unlocked and they could also opt the latest and new technologies to lead better and improved lives.

Benefits of a Producer Company Registration

A Producer company enjoys all the benefits of a private limited company such as:

Just like a private limited company, a registered farmer producer company is also considered as a separate legal entity that can purchase or sell land at its own name.

More credibility is offered to the registered companies as compared to the nonregistered ones.

An applicant can make desired changes in the board of management by filling some simple form with regards to the registrar of Companies (ROC)

The liabilities of the members are limited, and their personal assets cannot be used to cover up the debt and losses of the company.

Documents required for Producer Company Registration

  1. From All Directors And Shareholder
    • PAN Card or Passport or Election ID Card
    • Latest Bank Statement/Telephone or Mobile Bill
    • Voter’s ID/Passport/Driver’s License
    • Passport-sized photograph of all directors and shareholder
  2. For Proposed Registered Office (Residential Or Commercial)
    • Copy of any Utility bill
    • Scan copy of Rent agreement with NOC from the owner
    • In case of owned Property then copy of Property Papers.

Rules and Regulations for Easy Availability of Loans and Credits

The main aim of the producer company is to uplift the standard of living of the primary producers in India. And to fulfil this aim, a special provision was passed according to which loan would be sanctioned to the respective members of the producer company through:

As per the law, loans and advances would be issued to the members of the producer company against security for 7 or less than 7 years from the date of disbursement of the loan.

Credit facilities would be given to the members of the producer company for a period of 6 months or less than that.

NABARD stands for National Bank for Agriculture & Rural Development that helps to meet the financial requirements of small and regional scale farmers. The members of

Producer Company can obtain loans under the NABARD loan scheme.

What are the Activities Performed by the Farmer Producer Company?
As Mentioned, Producer Company Deals With All The Production And Harvesting As Well As Post-Harvesting Activities. Here Is The Detail Of Activities Performed By Them:
  • Processing Of Crops And Farm Products: the first step is processing of crops which involve various procedures such as brewing, preserving, drying, venting, distilling, packaging, and canning.
  • Manufacturing Of Crops And Farm Products: manufacturing involves the production on a large scale by using the high tech machines. They further supply and sale the necessary types of equipment and machines for better outcomes and manufacturing.
  • Assistance And Education: low scale farmers are deprived of using new technologies, so guidance and assistance are provided to them so that they can opt for better ways to grow crops. Education related to mutual assistance principle is provided to the members of farmer Producer Company.
  • Render various services such as technical, consultancy, training and other promotional activities as per the interest and requirements of the producer company.
  • Insurance of the producer and his primary produce
  • Make sure to generate, transmit and distribute power and best utilization of water and land resources.
  • Promotes various techniques related to mutual assistance and mutuality
  • Financial assistance to the members for marketing, procurement or other activities.
  • Some additional activities to promote the mutuality and mutual assistance amongst the members of the company.
Note: as per the Companies Act, 1956, primary production is the product arising from the agricultural land of a farmer such as floriculture, horticulture, animal husbandry, re-vegetation, viticulture, pisciculture, bee raising, forest products, forestry, and farming products.
What are the Pre-Incorporation Requirements under Producer Company?
Before incorporation, the farmer producer company has to fulfil below-given requirements:
  • There must be a minimum number of 5 directors and 10 members to incorporate the company
  • The minimum paid-up capital should be Rs 5 lakhs or more to register a company
  • There is no limit for the maximum number of members in a producer company
  • Further, the company cannot be registered or considered as a Public Limited Company
  • The company can only possess equity share capital
  • The company must carry on 4 board meetings per year, and it should hold after every three months
Other Mandatory Requirements
Here are some additional mandatory requirements for Producer Company Registration:
  • Only a person or member engaged in activities related to the production of primary produce can participate in the ownership of the company.
  • All the members should be primary producers
  • The liabilities of the producer company members are limited to the amount of their unpaid share
  • The name of the proposed company must contain “Producer Company Limited” at the end of their name.
  • The proposed Producer Company is deemed as the private limited company as per the provisions of the Companies Act.
What Is Included in Our Company Registration Package?
  • DIN for 2 Directors
  • DSC for 2 Directors
  • Name search & approval
  • ROC Fees & Pan card


Timeline:10 days

Documents Required for Company Registration
  • Copy of PAN Card of directors
  • Passport size photograph of directors
  • Copy of Aadhaar Card/ Voter identity card of directors
  • Copy of Rent agreement (If rented property)
  • Electricity/ Water bill (Business Place)
  • Copy of Property papers (If owned property)
  • Landlord NOC (Format will be provided)
  • EMAIL ID and mobile no of all the directors
  • Account statement of all directors


Bank:ICICI Bank Ltd.
IFSC Code:ICIC0006281

After making the payment, please email me the scanned copy of the payment acknowledgement/receipt for our records.

What You Have To Do

Make payment, send us the above mentioned documents through mail id or whatsapp on 7905718305,your work is over, our team will take charge till the certificate is completed and delivered to you Enclosing company profile and list of services we offer

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