Producer Company Registration

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Producer Company Registration

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What is Producer Company Registration?

In a country where agriculture is the backbone of the economy, empowering farmers and rural producers isn’t just good policy — it’s a necessity. That’s exactly what the Producer Company model aims to do. Formed under the Companies Act, 2013, a Producer Company is a special kind of company that allows farmers, weavers, artisans, and rural producers to organize, grow, and profit — together.

A Producer Company is a company registered with the objective of serving the interests of primary producers. This includes:

  • Farmers
  • Fishermen
  • Weavers
  • Dairy producers
  • Handicraft artisans
  • And other individuals engaged in primary production

As per the Companies Act, 2013, they continue to operate as private limited companies with no limit on the number of members. In simple words, it’s a way for producers to pool their resources, market their products, and run operations like a formal business, while still staying member-owned and community-driven.

A farmer producer company is a hybrid between private limited companies and cooperative societies, registered under the Act. They have democratic governance and each member or producer has equal voting rights irrespective of the number of shares held.

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Authorized Activities of Producer Companies

The Producer Company is required to deal with the produce of its members and is authorized to carry on any of the following activities:

  • Processing (processing also includes, preserving, brewing, vinting,  drying, distilling, canning and packaging) of the produce of its members;
  • Manufacture, sale or supply of equipment, machinery or consumables to its producer members;
  • To provide education on the mutual assistance principles to the producer members of the producer company and others;
  • To render consultancy services, technical services, training, R&D and all other required activities for promoting the interests of producer members;
  • Generation, transmission and distribution of power, conservation and communication relatable to primary produce, revitalisation of land and water resources,
  • Insurance of the primary produce and its producer;
  • To promote the techniques of mutuality and mutual assistance;
  • The welfare of members as may be decided by the Board;
  • Financing of procurement, marketing, processing or other activities such as extending of credit facilities or any other financial assistance to its producer members.
  • Any other activity (ancillary or incidental to the main objectives of the producer company) in order to promote mutual assistance amongst the producer members and the lines of principles of mutuality.

Key Features of a Producer Company

Here are some defining characteristics of a Producer Company:
Only “Producers” Can Be Members
Only individuals or institutions engaged in primary production activities—such as farming, fishing, or forestry—are eligible to form or become members of a Producer Company, ensuring it remains focused on agricultural and rural development.
Minimum 10 Producers Required
To form a Producer Company, you must have either a minimum of 10 individual producers or at least 2 producer institutions as members, ensuring collective ownership and shared responsibility in agricultural or allied activities.
Treated as a Private Company
Though registered as a private limited company, a Producer Company is exempt from specific restrictions like the 200-member cap, allowing unlimited producer membership and promoting larger collective participation in agricultural development.
Limited Liability & Separate Legal Entity
A Producer Company operates as a distinct legal entity, meaning it can own property and enter contracts independently. Members’ personal assets remain protected, limiting liability to their agreed capital contribution only.
Profit Distribution
Producer Companies distribute profits to their members in three main ways: Patronage Bonus based on the level of individual participation, Dividends on shares held by members, and Limited Return as specified in the Articles of Association or company charter.
Name Must End with “Producer Company Limited”
As per legal requirements, the name of every Producer Company must end with “Producer Company Limited,” clearly indicating its structure and purpose while distinguishing it from other types of registered business entities.

Benefits of Registering a Producer Company

Forming a Producer Company brings real, tangible benefits — especially for small farmers and rural communities. Here’s how it empowers:

1. Better Bargaining Power

By coming together under a Producer Company, producers gain collective bargaining power, enabling them to secure better prices for agricultural inputs and achieve higher returns when selling their produce in the market.
2. Access to Credit and Inputs
A Producer Company can offer its members vital inputs like credit, seeds, fertilizers, tools, and more, helping them improve productivity, reduce dependency on middlemen, and achieve better farming outcomes.
3. Professional Management
A Producer Company runs like a professional business entity with a board of directors, clear governance structure, and transparent operations, ensuring accountability and fair decision-making for the benefit of all members.

4. Profit with a Purpose

Income earned by a Producer Company is either fairly distributed among its members based on their participation or reinvested into the business to enhance collective benefits, sustainability, and future growth opportunities.
5. Legal Recognition and Credibility
A Producer Company gains credibility, making it easier to receive government subsidies, CSR funding, and institutional support for rural development and agricultural enhancement.
6. No Middlemen
Producer Companies enable members to sell their produce directly to consumers or large buyers, eliminating middlemen. This direct marketing approach increases income, ensures fair pricing, and enhances market access for producers.

Producer Company Registration process

1. Preprations of Digital Signature (DSC)
1st we apply for DSCs of all the Directors & members. Digital Signatures are required for signing all the documents while incorporating your Section 8 Micro Finance company.
2. Filing Application for Director's DIN
The next step is the application of Director Identification Number (DIN). It is the unique number allotted by the MCA to each of the directors of the Section 8 Micro Finance Company.
3. Choosing Unique Name
Meanwhile applying for your DSCs, we help you in selecting Unique Name for your dream Section 8 Micro Finance Company. This process completes in a single day.
4. Preparing Forms and Documents
After the approval of the Company’s name, we prepare all the e-forms and other documents.
5. Filing e-forms with MCA
After completing all the formalities and documentation work, we upload e-forms along with the attachments prepared in step-4 on the MCA portal for approval.
6. Allotment of COI, PAN & TAN
The department will allot Certificate of Incorporation for your Section 8 Microfinance Company along with company's PAN & TAN. You can now open Current Bank Account and start the operations. CONGRATULATIONS...

Process to Register a Producer Company

The process of registering a Producer Company is similar to that of a Private Limited Company.

Director Requirements

To register a Producer Company, directors must obtain a Digital Signature Certificate (DSC) for secure e-filing and a Director Identification Number (DIN) for legal recognition and compliance purposes.
Name Reservation
Secure a unique name for your Producer Company via the MCA portal, ensuring it aligns with naming guidelines and ends with “Producer Company Limited” to reflect its legal identity.
Draft Constitution Documents
Create the Memorandum of Association (MoA) and Articles of Association (AoA), which outline your Producer Company’s goals, governance rules, and internal structure as per legal requirements.

Timely Submission Required

After reserving your Producer Company’s unique name, you must submit the incorporation forms and required documents to the Registrar of Companies within 20 days to avoid expiration or rejection.
Receive Incorporation Certificate
Upon approval of all submitted forms and documents, the Registrar of Companies issues the Certificate of Incorporation, officially recognizing your Producer Company as a registered legal entity in India.
PAN and TAN
After incorporation, apply for the company’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) to legally conduct financial transactions and comply with tax regulations.

Documents Required

  • Passport Size Photograph of all Directors
  • Name Approval Letter with 2 proposed names
  • Object of the company
  • Address proof of all Directors. (Bank statement/Electricity bill/) (not more than 2 months)
  • PAN card and Aadhar card of all Directors.
  • Identity proof of all Directors. (Driving license/ Voter ID card/passport)
  • Email id and mobile number of all Directors.
  • Registered office address proof. (Electricity bill/ Telephone bill/Gas Bill) (not more than 2 months)
  • Rent Agreement (Company name should be mentioned with complete address) (on Rs. 100 stamp paper with Notary)
  • Digital signature certificate of All Directors.
  • DIR-2 of all Directors.
  • NOC (Company name should be mentioned) (on Rs. 100 stamp paper)
  • Board resolution authorising investment in the company

Eligibility

    • Any 10 or more producers (individuals) can join together to form a production company but there is no upper limit on the number of members.
    • Or, any 2 or more producer institutions can form a producer company.
    • There should be a minimum of 5 directors (maximum of 15) in a producer company.
    • It can never be converted into a public company however it can be converted into a multi-state co-operative society.

    Producers are people involved in:

    • Farming
    • Animal husbandry
    • Forestry
    • Handloom or handicraft work
    • Dairy, poultry, fishing, bee-keeping
    • Any other primary production activity
    Note: Investors or outside businessmen who are not producers cannot become members.

What do you get?

  • Unique Name Approval
  • Company PAN & TAN
  • Digital Signature Certificate – 2
  • Memorandum of Association
  • Articles of Association
  • Director Identification Number – 2
Frequently Asked Questions

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We provide the fastest Online Company Registration Services in India. Our team knows the importance and thrill of getting your first company registration. Thus, delivers services with utmost seriousness.

We provide the fastest Online Company Registration Services in India. Our team knows the importance and thrill of getting your first company registration. Thus, delivers services with utmost seriousness.

We provide best in class personal assistance

Once, you decide to get started with your company registration process with us, we assign you a personal dedicated assistant who ensures a smooth & efficient user experience and answers all your queries on time

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