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Overview of Producer Company

A Producer Company is a special type of company formed under the Companies Act, 2013 to benefit farmers, agricultural producers, and rural entrepreneurs. It allows primary producers to collectively engage in activities like production, processing, marketing, and distribution of goods and services.

Key Features 

  • Member-Based Organization: Comprises only primary producers such as farmers, fishermen, artisans, and rural entrepreneurs.

  • Limited Liability: Members’ liability is limited to their share capital investment.

  • Minimum Requirement: At least 10 individual producers or 2 producer institutions are needed to form a Producer Company.

  • Profit Distribution: Profits can be distributed as dividends or reinvested in business development.

  • Separate Legal Entity: The company exists independently of its members and has perpetual succession.

  • Governance: Managed by a Board of Directors with a minimum of 5 and a maximum of 15 directors.

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    Agricultural Production & Marketing

    Producer Companies assist farmers in production, harvesting, procurement, grading, marketing, selling, and exporting their primary produce. They also help in importing goods and services that benefit members.

    Processing & Value Addition

    They engage in processing activities like drying, preserving, brewing, canning, and packaging to enhance the value and marketability of agricultural products.

    Supply of Equipment & Resources

    Producer Companies manufacture, market, and supply essential machinery, equipment, and agricultural inputs to ensure farmers have access to necessary resources.

    Financial & Insurance Support

    They provide financial assistance, including credit facilities, for procurement and marketing. Additionally, they offer insurance services to protect members and their produce.

    Member Welfare & Training

    To improve farming practices, Producer Companies offer educational programs, technical training, and consultancy services. They also implement welfare measures for the benefit of their members.

    Hybrid Structure

    A Producer Company blends the benefits of a Private Limited Company with the cooperative approach of a society, ensuring professional management while prioritizing mutual benefits for members.

    Ownership by Primary Producers

    Only “primary producers” or “Producer Institutions” can be members, ensuring the company remains dedicated to the interests of farmers and other producers. Member equity cannot be traded, preventing takeovers.

    Limited Liability Protection

    Members’ liability is restricted to their share contribution, meaning their personal assets are safeguarded from company debts or financial losses.

    Minimal Capital Requirement

    A Producer Company requires a minimum paid-up capital of Rs. 1 Lakh and an authorized capital of Rs. 5 Lakh, making it easier to establish with small investments.

    Flexibility & Nationwide Operations

    A Producer Company can be formed with just 10 members, with no maximum limit. Additionally, it can operate across India, providing scalability and business expansion opportunities.

    Membership Structure

    A Producer Company consists exclusively of primary producers or producer organizations. Membership is obtained by purchasing shares in the company, and only members can execute its activities. They hold the authority to establish or dissolve the company, with major decisions taken collectively in general meetings.

    Governance Structure

    The management of a Producer Company is overseen by a Board of Directors, elected by the members. A minimum of 5 directors is required, each serving a five-year term, with a re-election limit of two consecutive terms. The Board plays a crucial role in decision-making and ensuring smooth company operations.

    Capital Requirements

    The minimum Authorized Capital for a Producer Company is Rs. 5 lakh, which can be increased as per the Memorandum of Association. The minimum paid-up capital is Rs. 1 lakh, ensuring financial stability and fulfilling business objectives.

    basic plan

    ₹8,599 to ₹10,499

    • Company Name Reservation (SPICe+ Part A)
    • DIN for 2 Directors
    • DSC for 2 Directors (Class 3)
    • MOA & AOA Drafting
    • PAN & TAN Application
    • Incorporation Certificate
    • Company Master Data
    • Basic Compliance Guide PDF
    • GST Registration
    • MSME Registration
    • 1st Board Resolution Draft
    • Bank Account Opening Assistance
    • Start-up India Recognition (If Eligible)
    • 3 Months Compliance Support
    • Shop & Establishment License
    • TDS Registration (TRACES)
    • Import Export Code (IEC)
    • Trademark Filing (Single Class)
    • Professional Tax Registration (if applicable)
    • 6 Months Compliance Support
    • Personalized Business Advisory
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    premium plan

    ₹17,999 to ₹29,999

    • Company Name Reservation (SPICe+ Part A)
    • DIN for 2 Directors
    • DSC for 2 Directors (Class 3)
    • MOA & AOA Drafting
    • PAN & TAN Application
    • Incorporation Certificate
    • Company Master Data
    • Basic Compliance Guide PDF
    • GST Registration
    • MSME Registration
    • 1st Board Resolution Draft
    • Bank Account Opening Assistance
    • Start-up India Recognition (If Eligible)
    • 3 Months Compliance Support
    • Shop & Establishment License
    • TDS Registration (TRACES)
    • Import Export Code (IEC)
    • Trademark Filing (Single Class)
    • Professional Tax Registration (if applicable)
    • 6 Months Compliance Support
    • Personalized Business Advisory
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    Quality of one time Services offered by Services"Rule Infinity"

    In south India most renowned  “Rule Infinity” offering following service in a same day deliver at a low cost ever at continuous service.

    Basic Compliances

    Business need PAN,TAN and Bank account to carry out the regular work in a day to day operations its includes into our Basic Package.

    Income Tax Compliance

    Income Tax filing and related complainces like Filing Income tax returns and many other Income tax forms.

    ROC compliances

    It includes Acts covers Companies Act and Foreign Contribution and Regulation Act Compliance.

    Audit

    Conduct Internal Audit and Statutory Audit for producer company with quality of output.

    Handling Notices

    Rule Infinity Experts will analysis the notices received from the Income tax department and will follow up until the final level of completion

    Consultation

    “Rule Infinity” experts offers Consultation for different industry/sectors as suitable for issues or cases in a same day delivery.

    Tax Planning

    “Rule Infinity” Experts offers pre incorporation or post incorporation Tax Planning,Tax management and Tax Optimization strategy for producer companies in a case to case basis.

    Register Producer Company

    Let us Incorporate Producer Company step by step

    We have made the process to be very simplest. Just go through every steps and find yourself which stage you are in! And let us know which service you would like to start from.

    Choose where you are!

    I want to register Producer company Most
    Need Conversion from Co-operative Society to Producer company
    Close or strike off the Producer Company

    Types of Producer Companies

    As per Company Law Producers company can be one of the type among the following to get the benefits of the farmers.

    Production Businesses

    The main functions of producer companies are production, procurement or manufacture of any primary produce for its members (for further sale) and to others.

    Marketing Businesses

    Even a business involved in the marketing or promotion of primary produce or provision of educational services to members and others can constitute itself as a producer company.

    Technical Service Businesses

    Any business offering technical assistance to producers, providing training and educational services or conducting research and development can register as a producer company.

    Financing Businesses

    Any business financing producer activities, be it in the production, marketing or development domain, can register itself as a producer company.

    Infrastruture Businesses

    Businesses involved in providing infrastructure to producers, whether in the form of electricity, water resources, irrigation techniques, land utilization, or consultation with regard to the same, may constitute themselves as a producer company.

    Process of Producer Company
    Registration in India

    Obtain Digital Signature (DSC)

    Get a Digital Signature Certificate (DSC) for all proposed directors to securely file documents online.

    Apply for Director Identification Number


    Each director must obtain a unique DIN by submitting DIR-3 or SPICe+ form with identity and address proof.

    Reserve Company Name

    File Form SPICe+ with the Registrar of Companies (ROC) to propose two names ending in "Producer Company" and get approval.

    Prepare Essential Documents

    Draft the Memorandum of Association (MoA) and Articles of Association (AoA), along with address proof, affidavits, and director appointment forms.

    File Incorporation Application

    Submit all prepared documents through Form SPICe+ to the ROC, including company details and registered office proof.

    Obtain Certificate of Incorporation

    The ROC verifies the application and issues a Certificate of Incorporation, legally allowing the company to start operations.

    Frequently Asked Questions

    What is a Producer Company?

    A Producer Company is a legally registered entity formed by a group of primary producers (farmers, artisans, or other producers) to collectively engage in production, marketing, and business activities to enhance their income and efficiency.

    What are the primary objectives of a Producer Company?

    The main objectives of a Producer Company include:

    • Procurement, production, and marketing of agricultural and other primary produce.

    • Processing, packaging, and selling of member produce.

    • Providing education, training, and consultancy for members.

    • Facilitating credit, finance, and welfare measures for members.

    What legal framework governs Producer Companies in India?

    Producer Companies in India are governed by the Companies Act, 2013 (previously under Section IX-A of the Companies Act, 1956), which provides a structured legal framework combining the benefits of cooperative societies and private limited companies.

    What are the advantages of starting a Producer Company?
    • Limited Liability: Members are only liable up to their investment.

    • Better Market Access: Helps small producers access larger markets.

    • Financial Support: Can avail loans, grants, and subsidies.

    • Professional Management: Operates with structured governance.

    • Tax Benefits: Certain agricultural activities have tax exemptions.

    How is membership structured in a Producer Company?
    • Membership is restricted to primary producers or producer institutions. A Producer Company must have:

      • Minimum 10 individual producers or

      • Two or more producer institutions or

      • A combination of both

    What is the governance structure of a Producer Company?
    • Board of Directors (Minimum 5, Maximum 15 Directors)

    • Chairperson elected by Directors

    • General Body comprising all members

    What are the minimum share capital requirements for a Producer Company?
    • The minimum paid-up capital required for a Producer Company is ₹1 lakh, and there is no maximum limit.

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