Producer Company

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Overview
Required Documents
Benefits
Process
FAQs

Overview

A Producer Company is a special type of company formed to benefit primary producers such as farmers, agriculturists, dairy producers, fishermen, artisans and other rural producers. It is governed by the Companies Act, 2013 and is designed to combine the professional structure of a private limited company with the mutual benefit principles of cooperative societies. This structure enables producers to work collectively while retaining ownership and control of their business.

The main objective of a Producer Company is to carry out activities related to production, procurement, processing, grading, pooling, handling, marketing, selling and export of the primary produce of its members. Only producers or producer institutions can become members of a Producer Company. Each member has equal voting rights, irrespective of the number of shares held, which ensures democratic decision making and prevents dominance by a few members.

To incorporate a Producer Company, there must be at least ten individual producers or two producer institutions or a combination of both. The company must have a minimum of five directors and a maximum of fifteen directors. The words Producer Company must be used in the name. The company enjoys limited liability, which protects members from personal financial risk while allowing the company to access institutional finance and government support.

BizGlobal Professional Services provides complete assistance for Producer Company registration and compliance. We help in assessing eligibility, structuring members, drafting Memorandum and Articles of Association, and filing incorporation forms with the Ministry of Corporate Affairs. Our team also assists with post incorporation compliances, registrations and ongoing statutory support, ensuring that producer groups can focus on growth while we handle the legal and compliance framework.

Required Documents

REQUIRED DOCUMENTS

PAN card of all members and directors
Aadhaar card of all members and directors
Passport size photographs
Address proof of members and directors
Proof of producer activity such as land records or activity certificate
Registered office address proof
Rent agreement or ownership proof of office premises
Latest utility bill of registered office
Consent and declaration of directors
Digital Signature Certificates of directors

Advantage

Limited Liability

Members are protected from personal financial risk as their liability is limited to the unpaid amount on shares held by them.

Democratic Governance

Each member has equal voting rights regardless of shareholding, ensuring fair participation and transparent decision making.

Professional Management

The company follows corporate governance standards, leading to better accountability, compliance and operational efficiency.

Better Market Access

Collective marketing enables producers to negotiate better prices and access national and international markets.

Access to Institutional Finance

Banks, NABARD and financial institutions prefer Producer Companies for loans and funding support.

Government Schemes and Subsidies

Producer Companies are eligible for various central and state government schemes, grants and subsidies.

Long Term Sustainability

The structure ensures long term growth while maintaining producer ownership and control.

REGISTRATION PROCESS

Process for Producer Company Registration

Member Eligibility and Structuring

Identify eligible producers and finalise the required number of members and directors. Ensure all members are engaged in producer activities as defined under law.