Producer Company Registration
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  • Minimum 5 Directors,
  • Any 10 or more Individuals producers or.
  • Any 2 or more producer institutions
  • Atleast one Director should be an Indian Resident.

Quick Enquiry or Call : +919717712008 / 9650082009

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Producer Company Registration

A Producer Company consists of 10 or more people or two or more entities involved in agricultural production or post-harvest processing operations. Thus, a producer company is a legally acknowledged cluster of farmers / agriculturists who aim to enhance their income, status of their accessible assistance and profitability, and living standards.

The sections below provide different data about some exclusive benefits offered by a producer company and we will do the entire producer company registration anywhere in India. Here it can be observed that in a nation like India, where about 85 percent of farmers have tiny land holdings, these producers company are definitely of enormous utility and excellent benefit to farmers and member of companies. So far, our extremely famous Indian law firm has helped countless producer company  registration in their producer business in locations across India.


  1. A producer company is a hybrid between a private limited company and a cooperative society
  2. To start a business of agricultural production, export and trading of primary production in India, Producer Company is the most easy and affordable way to start loan business in India. It only requires 10 persons with easy documents requirement to start the Producer Company.
  3. Producer Company can only do business with the help of its members and financing them for main activities which includes extending credit facilities also.
  4. Producer Company can not deal directly with the Producer and can only work with its members. However, it is easy to make members under the Producer Company with few documents and easy process.
  5. The Producer Company Registration is the only form of company available to start a loan company in India without RBI approval.

Document Required


  1. Proof of identity of all the shareholders and directors ie. (Passport/DL/Aadhar Card/Voter Id) 
  2. Proof of address of all the directors and the shareholders Bank Account Statement/Electricity Bill/Mobile Bill
  3. PAN Card of all the shareholders and directors
  4. Utility Bill of the proposed office i.e. proposed registered office for the company
  5. NOC (No Objection Certificate) from the landlord where the office of the company will be situated
  6. Duly signed DSC Form of the all directors of the proposed company.
  7. Producer Proof- Khasra - Khatuni/ ITR with Agriculture Income/ Sarpanch letter/ Any other proof that can provide person as producer



Directors Detail:

1.      Educational Qualification of all the Directors.

2.      Profession/Occupation of all the directors with area of Operation

3.      Citizenship alongwith Residential Status of all the Directors

4.      Place of Birth of all the Directors

5.      Permanent & Present Residential Status of all the Directors

6.      Contact Numbers of all the Directors

7.      Email Ids of all the Directors




 Company Detail

  1. Preference wise Proposed names of the Company 
  2. with Significance of the name 
  3. State in which Company is to be registered.
  4. Authorized and Paid Up capital of the Proposed Company
  5. Main Object of the Proposed Company
  6. Division of paid Up capital among the Subscribers.
  7. Number of Proposed Directors
  8. Number of Proposed Shareholders
  9. Name of the bank in which Company bank Account will be preferred.
  10. Email id of The Company.

What You Get


Top of Form

  1. 22Director Identification Number (DIN) for life time of all 3 directors.
  2. Digital Signature Certificates (DSC) of all the 7 directors & subscribers.
  3. Reservation the name for your Company.
  4. Certificate of Incorporation
  5. PAN Card of the Company
  6. TAN No of the Company
  7. Bank Account With Desired bank
  8. ESI and EPF No.
  9. Share Certificates
  10. Proper Incorporation File
  11.  Bank account opening documents
  12. Draft Copies of MOA & AOA.
  13. GST Registration



  1. Initially, the members of the producer company will receive the value of the product pooled and supplied as determined by the directors. This amount will be made available later in the form of cash / kind / equity shares.
  2. The members of the producer company shall have the right to receive bonus shares in the same proportion as the shares held by them.
  3. The surplus (after providing for the payment of limited returns and reserves) may be granted as a patronage bonus * to the members of the producer company.
  4. Deposits under Producer Company- Producer can accept 2 types of deposits; Fixed deposit (FD) and recurring deposit (RD).
  5. A special provision under the companies acts was passed for giving loans to producer members. A Producer Company can provide financial assistance to its members through:-
  • Credit facility : This is available to any member for a period not exceeding six months (such facility must be in connection with the business of the Company).
  • Loans and advances: These are provided to the producer member against security, repayable within a period not exceeding seven years from the date of disbursement of such loans or advances.
  • NABARD Loan: NABARD provides support and financial assistance to meet the needs of Producer Companies. In 2011, NABARD set up a Rs. 50 crore Producer Organisation Development Fund (PODF), out of its operating surplus.


  • Internal Audit under Producer Company- An internal audit of the producer company will be carried out at regular intervals by a CA, CS, CMA or Advocate in accordance with the AOA. Depositing amount of shares subscribed by shareholders in company account.
  • Annual Report by Auditor- NDH - 3 is an half yearly return filed in order to check whether the Producer company is working as per the rules or not. This return is to be filed by 30th September and 31st March each year.
  • Other Compliances- There are various other compliances which are prescribed under various act’s like Companies Act, Income tax act, Money Laundering etc.

Time Duration

15-20 days



How it works

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1. What is producer Company?

  • A producer company in India is a company registered under the Companies Act with the mutual objectives of agricultural production, procurement, post-harvesting processing activities, importing, selling and distributing goods, exporting primary production to members to make more profit.
  • A producer company shall be a committee of 10 or more persons and two institutions with a common objective of dealing with agricultural and post-harvesting processing activities.
  • In simple words, it is a cluster of farmers who joint hands for better living and to improve their income.


2. What are 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 the mutual assistance amongst the producer members and the lines of principles of mutuality.

Note: Primary produce has been defined under the Companies Act 1956 as a produce arising from agriculture by a farmer which includes animal husbandry, floriculture, horticulture, viticulture, pisciculture, re-vegetation, bee raising, forestry, forest products and farming plantation products, produce of hand-loom, handicraft and other cottage industries.

3. What are the types of Producer Companies?

Following are the types of Producer Company:

  • Production Businesses – Companies which are involved in the manufacturing and the production of the primary produce.
  • Marketing Businesses – Businesses involved in the marketing or promotion of the primary produce.
  • Technical Service Businesses – Companies who offers technical assistance to producers.
  • Financing Businesses –
  • Infrastructure Businesses – Business involved in providing infrastructure facilities like electricity, water resources etc.

 4. What are the main Major Benefits/difference of producer Company?

Understanding the meaning of the producer company in the best possible way is to understand its features. Producer Company is essentially a production company that creates a pool of small producers who will become members of the company and trade with them, help them financially, help them and promote mutual and mutual assistance techniques.

  • 100% Income Tax Exemption- Producer Company is exempted from paying income tax
  • Loan Facility to Members- Producer Company can extend the credit and financial facility to its members
  • Deposit Acceptance- Producer Company is eligible to accept deposits in the form of recurring deposit or fixed deposit
  • Loan against security- Producer Company can lend only against gold, property, FD, Govt securities
  • Members under Producer Company- Producer Company can deal with its members only

5. Can foreign national be appointed as a director in a Producer Company?

Yes, a foreign national can be appointed as a director after obtaining valid DIN. However, one director must be a resident in India.

6. Can we transfer shares of the Producer Company?

Yes, they are transferrable — members of the producer company transfer shares along with the special rights.

7. Can Producer Company give special rights to its members?

Special rights can be given to the members of the Producer Company if the article of association provides so. In respect of such special rights, the appropriate instrument may be issued to the producer company.

8What will happen in the event that a member of the producer company has ceased to be a primary producer?

In the event that a member ceases to be a primary producer, the directors of the Producer Company shall direct the surrender of shares at par value or at the value determined by the directors, together with the special right attached, if any. It will only be done if the written notice is given to the member and the opportunity to be heard is given.

9. Can a nominee be appointed by the members in a Producer Company?

With 3 months of becoming a member of the Producer Company, the member shall nominate a person in a specified manner to which shares will vest in case of death.

10. What are the benefits derived by the members of producer companies?

Following benefits are derived by the members of producer companies:

  • Subject to provisions made in articles, every member shall initially receive only such value for the produce or products pooled and supplied as the Board of Producer Company may determine, and the withheld price may be disbursed later in cash or in kind or by allotment of equity shares, in proportion to the produce supplied to the producer company during the financial year to such extent and in such manner and subject to such conditions as may be decided by the Board.
  • Every member shall, on the share capital contributed, receive only a limited return provided that every such member may be allotted bonus shares in accordance with the provisions contained in section 581ZJ.
  • The surplus if any, remaining after making provision for payment of limited return and reserves referred to in section 581ZI, may be disbursed as patronage bonus, amongst the members, in proportion to their participation in the business of the producer company, either in cash or by way of allotment of equity shares, or both, as may be decided by the members at the general meeting.

11. What is the Liability of the Directors in a Producer Company?

Liabilities of directors in a Producer Company:

  • Section 581T of the Companies Act, 1956, provides that any contravention of the provisions of this Act or any other law or provisions of articles, done by the directors shall make such directors either jointly or severally liable towards the Producer Company to make good any loss or damage suffered by such Company.
  • the Producer Company shall have the right to recover from its directors and if such director has made any profit (with ill intention), the Producer Company shall have the right to recover an amount equal to said profits from such directors and if in case of a loss or damage an amount equal to that loss or damage.
  • The liability so imposed shall be in addition to and not in derogation of a liability imposed under this Act or any other law for the time being in force. However all acts done by the directors in the general interest of the

company and its members and in accordance with the provisions of Memorandum, Articles and provisions of this act and loss or damage, if

any suffered by company, then such loss or damage shall not be considered as personal liability of the directors and they shall not be required to make good such loss or damage.

  • There can be various Committees of Directors which can be formed as means of improving board effectiveness and efficiency, in areas where more focused, specialised and technical discussions are required. There commendation of the committee has to be approved by the Board.
  • Section 581U of the Companies Act, 1956, states that the Board may constitute such number of committees as it may deem fit for the purposes of assisting the Board in efficient discharge of its functions. However, the Board of directors shall not delegate any of its powers or assign the powers of the Chief Executive, to any committee of directors.
  • Every such committee may with the approval of the Board, co-opt such number of persons, as it deems fit, as the members of the committee. However in every such committee the Chief Executive appointed under Section 581W or a director of Producer Committee shall be a member.
  • Every such committee shall be subject to general superintendence, direction and control of the Board. The Board may decide the duration, functioning and the fees and allowances to be paid to the members of the  committee. The minutes of every Committee meeting shall be placed before the next Board meeting