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What is a Producer Company?

Generally, a Producer Company is a company formed by ten or more individuals. Moreover, two or more institutions together can also create a Producer Company. Producer Company forms so that farmers can gain benefits by doing various activities related to harvesting. These activities include post-harvesting processing, procurement, selling and distribution of the harvest. In simpler words, the Producer Company is a group of farmers working together. It benefits them in improving their income and living standards.

Our Producer Company Registration Service helps you form it easily.

A Producer Company is a registered company under the Companies Act in India. The Producer Company works to help farmers by facilitating various activities. That’s why Producer Company registration is beneficial for many people. You can easily Buy our Producer Company Registration Service.  

Producer Company Registration Guide

Eligibility to register as Producer company?

At least 5 Directors

Max fifteen directors are allowed. Less than five directors are not permissible for Producer Company Registration.

Minimum 10 Shareholders

Ten or More Shareholders - At least ten or More than ten individuals shall form a group.

Institutions and Individuals

The combined team of Ten or more individuals and two or more institutions are also suitable.

Two or More Institutions as Shareholders

At least two or More than two institutions are also eligible to create a group for Producer Company Registration.

Funds

At least 5 Lakhs of INR is prerequisite while forming the Producer Company.

Equity

The former company must have an only equity share in capital money.

Benefits of Registering a Producer Company

Great Credibility
Producer Company Registration offers more credibility in the market comparing to those unregistered ones.
Different Legal Entity
A Producer Company is a separate legal entity, and its members have limited liability.
Owning Property
Producer Company Registration allows the company to own or sell property on its name. Moreover, the company after Registration can accept deposits from or give loans to its agriculturist members.
Effective Management
By filing open forms to the ROC concerned, we can effortlessly make adjustments to a producer company's management board. That means you can easily Manage Producer Company and focus more on profits.
Comfort for investors
Due to separate managerial board the renumeration of the board is separate from the profit on share. Shareholder enjoys dividend for his/her investment, while managerial board gets renumeration for the work they do.
ESOPs
Employee can be made shareholder through ESOPs in the company which makes them more responsible and attached to their role in the company
Easy Transfer of Shares
It is easier to transfer the share of the company as compared to other forms of partnerships. It may be a shareholder, employee or any other company or individual.
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Documents Required For Producer Company Registration

Passport Size Photo

One Passport size photograph of All Partners

Identity Proof

PAN (for Indian Nationals) and Passport (for Foreign nationals)

Address Proof

Aadhar Card / Voter ID / Passport / Driving License / Ration Card

Company Name

A unique name you wish to start your company with. Give 6 options for fast registration.

Rent Agreement

If Rented Business than Rent Agreement Copy else sale deed of the property

Company's Objective

What service, product or goods company wants to sell or manufacture.

Residence Proof

Residence’s Electricity Bill / Telephone Bill / Bank Statement

Procedure for Producer Company Registration

Partnership Firm is registered with the registrar of firms of the state. An application form filled and signed by all partners along with the fees has to be submitted at Registrar of Firms (RoF) office.
  • Digital Signature DSC

    Obtain DSC (Digital Signature Certificate)

    The foremost need is to get DSC for all the managers or directors in a company. DSC is authorized to electronically signing the documents. The lead agency certifies it.

  • director-identification-number

    Obtain DIN (Director Identification Number)

    The second step is to obtain a Direct Identification Number by all the directors in the company. DIN is available through SPICE Form.

  • name-application

    Name Approval Application

    To register the Producer Company's Name, you need to apply to the RUN(Reserve Unique Name). This form has prescribed fee and needs to be submitted to the registrar of companies. If the Producer Company's name gets approval from ROC, you need to apply for incorporation application with a duration of 20 days.

  • e-forms-uploading

    Incorporation Application

    Incorporation Application also needs to apply in the spice form. This application requires various mandatory documents such as MOA, AOA, affidavit, and declaration with the concerned Registrar of Companies.

  • work-completion

    Company Incorporation

    After filling all the forms and completing all the steps Certificate of Incorporation is issued by the ROC. And it takes about a week for ROC's Approval.

Managing all these steps is a tedious task. Moreover, it is a time-consuming and confusing process. So always look for Producer Company Registration Service. Our Producer Registration Service is a team of experts that will guide you and help you in every step of Producer Company Registration.

Producer Company Registration Service Packages

Producer Company - Basic

Registration and Consultancy
₹55000
38990
  • PAN & TAN Registration
  • Class II DSC (10 Nos)
  • DIN (10 Nos)
  • GST Registration
  • 50 Share Certificates
  • Stamp Paper For Authorized Capital upto Rs. 10 lakhs.
  • Free CA Consultancy

Comprehensive Plan

Includes TDS & TM
₹80000
55990
  • PAN & TAN Registration
  • Class II DSC (10 Nos)
  • DIN (10 Nos)
  • GST Registration
  • 50 Share Certificates
  • Stamp Paper For Authorized Capital Upto Rs. 10 lakhs
  • Free CA Consultancy
  • MSME Registration
  • 1 Year TDS Filing
  • TM Registration

Producer Company - Basic

Registration and Consultancy
₹70000
45990
  • PAN & TAN Registration
  • Class II DSC (10 Nos)
  • DIN (10 Nos)
  • GST Registration
  • 50 Share Certificates
  • Stamp Paper For Authorized Capital upto Rs. 10 lakhs.
  • Free CA Consultancy
  • 1 Year TDS Filing

Frequently Asked Questions

It takes about two weeks to deliver the certificate of incorporation in your hand. – Please don’t commit the delivery time. You may use adjectives like generally.

Yes, the property owner in favour of the company is required. – This answer is not clear.

The normal registration route can take up to 30 days but registration through SPICe takes just 7 days.

DSC stands for Digital Signature Certificate. It is a pen drive containing your signature in a digital form and is password protected. It is only issued by government authorized agencies.

No, physical presence is not required, your signed documents and DSC will work.

No, that is not mandatory in this process. You can hire a (buy) Public Company Registration Service online

MOA and AOA are charter documents of the company. In simpler terms, it indicates the business objectives. It also defines the rules & regulations of the producer company.

The answer is yes. There are many benefits available to Producer Companies in India, such as Agriculture income is exempt under section 10(1) of the Income Tax Act, 1961.

Yes. The Producer Company registration is governed by Section 581 B of the Companies Act, 1956.

DIN – Rs.1000 (for 2 Directors)

RUN Form Fees – Rs.1000/-

Article of Association (AoA) –  Rs.1000 (for authorized capital upto 10 lakh)

Memorandum of Association (MoA) – Rs.1000/-

As per section 581C of the Companies Act 1956, Producer Company registration shall be considered as a body corporate which will under any circumstance not be deemed as Public Limited Company.

Yes, Special rights can be given only when the members of the Producer Company if they provide it in the article of association. In respect of such exclusive rights, the appropriate instrument should be issued to the producer company.

As per section 581C of the Companies Act 1956, Producer Company registration shall be considered as a body corporate which will under any circumstance not be deemed as Public Limited Company.

Yes, there are many benefits for the members such as-

  • Initially, the Producer company members will receive the amount for the aggregated and produced product supplied. (As determined by producer company’s directors). Afterwards, the amount will be distributed to the members in the form of cash/type/equity shares.
  • Patronage Bonus to the members after providing provision for payment of limited return and reserves.

Members of the producer company will also get the incentive shares in the same proportion as they own the production company’s equity stock.

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