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Producer Company Registration in India: Complete Guide to Process, Benefits & Compliance
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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.
Approved Activities of Producer Companies
The Producer Company is required to deal with the produce of its members and is allowed 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 member
- 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.
Benefits of a Producer Company Registration in India:
Forming a Producer Company brings real, tangible benefits especially for small farmers and rural communities. Here’s how it empowers:
1. Better Bargaining Power
Producers can negotiate better prices, both when buying inputs and selling produce.
2. Access to Credit and Inputs
The company can provide credit, seeds, fertilizers, tools, and more to its membe₹
3. Professional Management
Operates like a business, with directors, governance, and transparency.
4. Profit with a Purpose
Income generated is shared fairly among members or reinvested for common benefit.
5. Legal Recognition and Credibility
Helps attract government subsidies, CSR funding, and institutional support.
6. No Middlemen
Producers sell directly to consumers or big buyers, earning more income.
Documents Required for Producer Company Registration
- 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 Criteria for Producer Company Registration
- Any 10 or more producers (individuals) can join together to form a production company but there is no upper limit on the number of membe₹
- 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 member
What do you get after Producer Company Registration?
- Unique Name Approval
- Company PAN & TAN
- Digital Signature Certificate – 2
- Memorandum of Association
- Articles of Association
- Director Identification Number – 2
Why Choose MrBrandy for Producer Company Registration?
- End-to-end online registration and compliance support
- Drafting of MoA and AoA aligned with producer objectives
- Assistance with subsidy and loan documentation
- Dedicated compliance reminders and updates
- 30+ producer companies successfully registered across India
FAQs on Producer Company Registration
What is the minimum number of members required?
At least 10 producers or 2 producer institutions are required.
Can non-producers become members?
No. Only producers or producer institutions can be members.
Is there a maximum limit on members?
No, there is no cap on the maximum number of members.
What activities can a Producer Company carry out?
Production, harvesting, procurement, grading, pooling, processing, marketing, selling, and export of members’ goods.
Do Producer Companies get tax benefits?
Yes, agricultural income of Producer Companies is exempt under the Income Tax Act.
Can a Producer Company accept deposits?
Yes, but only from its members, and within MCA regulations.
Can Producer Companies raise funds from external investors?
No, external equity investment is not allowed. They can only raise equity from members and loans from banks.
Register Your Producer Company Today
Looking to empower your farming or production community? MrBrandy provides hassle-free Producer Company registration with complete compliance and support. Start your journey towards collective growth today.