Producer Company


(A Company that is registered with the Ministry of Corporate Affairs (MCA), for the purpose of agricultural production and processing activities, is called a Producer Company.)

A producer company is a legally recognized group of farmers/agriculturists with the goal of improving their quality of lives and ensuring a strong position of their financial assistance, earnings, and profitability. According to the Companies Act of 1956, a Producer Company could be established by 10 persons (or more), 2 institutions (or more), or a mixture of both (10 individuals and 2 institutions) with one of the below business objectives – Procurement, Production, Harvesting, Grading, Pooling, Handling, Marketing, Selling, or Export

Benefits Of Producer Company Registration

Producer Company 1

Limited Liability

All firms face the danger of being unable to fulfil their debts. It is an unavoidable evil. In this case, a sole proprietor will be individually responsible for all of the firm’s liabilities. 

Producer Company 2

Economies Of Scale

Approximately 15% of India’s farmers possess more than 2 acres of farmland. As a result, the farmers usually are incapable to securely reap the benefits of economies of scale.

Producer Company 3

Effective Management

Tasks inside a producer company might be distributed among its directors instead of being managed by a sole farmer. The business is controlled by the Board of Management, that has a 5 year term. 

Documents For Producer Company Registration

To Be Submitted By Directors & Shareholders

  • – PAN Card or Passport For NRIs.
  • – Voter’s ID/Passport/Driver’s License
  • – Latest Bank Statement/Telephone or any utility Bill
  • – Passport-size Photograph
  • – Specimen signature of directors only

For The Registered Office

  • – Latest Bank Statement/Telephone or Utility Bill.
  • – Notarised Rental Agreement in English.
  • – No-objection Certificate from property owner.
  • – Sale Deed/Property Deed in English in case of owned property.
Documents Required Producer Company

Types of Producer Companies

Types of Producer Company

1. Production Businesses

Producer firms’ major tasks are to produce, buy, or manufacture any primary produce for its members (for resale), as well as for others.

2. Marketing Businesses

A producer company might be a firm that engages in the marketing of primary product or provides educational services to participants as well as others.

3. Technical Service Businesses

A producer business could be any corporation that provides technical support to producers, provides training and educational services, or conducts research and development.

4. Financing Businesses

Any firm that finances producer operations, whether in the realms of production, marketing, or research, can establish as a producer company.

5. Infrastructure Businesses

A producer business is one that provides infrastructure to farmers, be it in the manner of power, water supplies, irrigation methods, land usage, or advice on the same.

FAQs on Producer Companies

That isn’t necessary. Our overall procedure is now digital and managed over the internet. The Ministry of Corporate Affairs would provide you the DIN numbers and Certificate of Incorporation through mail (MCA).

Wait for 35 to 40 days until the whole procedure is done. Nevertheless, it will rely on whether you are in order with all your documents and the RoC workload.

Each firm’s name is made up of two components. The initial section is one-of-a-kind. For instance, ‘WIPRO’ or ‘MERCEDES-BENZ.’ The second section details the firm’s business activities. ‘Legal Solutions,’ for example, or ‘Technologies.’ The second section should be as detailed as possible. The company’s name should conclude with ‘Producer Company Limited.’

Most significantly, all directors should have proof of identification and residence, as well as the legal permission to operate on the property on which they are working. The registered office owner must additionally file a NoC indicating that the business may function from such a place.

All businesses are legal entities in their own right. As a result, they persist indefinitely. Other than voluntary liquidation, the only method for a production business to cease to exist is if its yearly compliances are not satisfied or if creditors/courts compel its closing.

Yes, a producer company’s records should be audited from the start. If its annual revenue exceeds Rs. 5 crore, it should hire a full-time company secretary to handle its affairs.