Producer Company Registration

Producer Company Registration

What is the Producer Company?

 The Producer Company?

A producer company is basically a company registered to deal with the primary production of its active member related to farming. The main objective includes production to its selling and exporting also. For the purpose of incorporation of producer company, Part IXA of Companies Act, 1956 is applicable until any special Act is enacted for such companies.

A producer company is registered with ten or more member being producers; or any two or more producer institutions; or its combination. Alike any other company, the liability of its members is limited to the extent of unpaid share capital by its members. The producer company is deemed to be a private limited company under this Act, however, the threshold of the number of members does not apply to same.

Documents Required for Producer Company Registration

  • Copy of PAN Card of all directors
  • Copy of Rent agreement(If rented property)
  • Landlord NOC (Format will be provided)
  • Passport size photograph of directors
  • Passport size photograph of directors
  • Copy of Aadhaar Card/ Voter identity card
  • Copy of Property papers (If owned property)

Conditions for Incorporation

  • Ten or more individuals, each of them being a producer
  • Two or More Producer institutions
  • Combination of ten or more individuals and producer institution

Minimum Requirements

  • Minimum 5 Directors
  • Minimum Rs.5 Lacs Paid up Capital

Benefits of registering a farmer-producer organization

Special User Rights

  • The active members of the producer company may enjoy special user rights, if provided in the AoA of the company. The company may issue appropriate instruments to active members in respect of such rights. The special use rights refer to any right relating to the supply of additional produce by the active Member or any other right relating to his produce.

Benefits to members

  • Every member can initially receive only the value of the produce as determined by the Board. The withheld price may be disbursed later in cash or by allotment of equity shares. The members are eligible only for limited return but can also be allotted bonus shares. The surplus can also be disbursed as patronage bonus.

Separate legal identity

  • Alike any other company, the producer company also has a separate legal identity. The assets, liabilities, rights, debts and privileges shall vest in the company. The company can deal in its own name and hold the properties, too. The change in members or the directors neither affects its existence nor the assets & liabilities or rights & obligations.

Limited Liability of owners

  • The members and the producer institutions have limited liability towards the debts and obligations of the company. Their personal assets remain unaffected in any case of loss or winding up. With assurance to limited liability, the producers can invest with lower risk into such businesses.

      Formulation of Producer Company Name


Unique Name


Mainly it builds the company brand and preferably be a coined word


Constitution Type

Name of the company must end with“Producer Company Limited”as a suffix


  • Professional fees :

  • 39999/-

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