Producer Company Registration in India under Companies Act, 2013

Producer Company Meaning, Documents and Process required for Producer Company Registration

An article about Producer Company meaning, Producer Company Registration, Farmer Producer Company and other relevant information on Producer Company as per Companies Act, 2013.



A Producer Company is a distinction between a Private and a Public Company. These businesses have characteristics of Cooperative Societies. Only ‘Principal Producers’ or ‘Producer Institutions’ are permitted to Incorporate Producer Companies and participate in their ownership.


People involved in the Primary Produce process are referred to as “Primary Producers.” Primary produce refers to agricultural products such as horticulture, animal husbandry, forest products, forestry, re-vegetation, beekeeping, and plantation farming. It can also comprise the goods of those who work in handloom, handicraft, and other cottage industries, as well as By-products and associated enterprises.

Producer Company Meaning

A Producer Company is a legally recognized group of farmers/agriculturists with the goal of raising their living standards and ensuring good status of their available assistance, incomes, and profitability. A Producer Company can be founded by ten individuals (or more) or two institutions (or more) or a mix of both (10 individuals and two institutions) with one of the following business objectives such as marketing, grading, export, selling, and other businesses.

Characteristics of Producer Company as per Companies Act, 2013

  • The registered producer firm will be considered as if it were a Private Limited Partnership.
  • The maximum number of participants is 50.
  • To start a producer business, ten or more ‘Primary Producers’ are necessary. A minimum of two people are required to register them, much like a private limited company.
  • A minimum authorized and paid-up capital of INR 5 lakh is required.
  • The maximum number of directors is five.
  • The profit share will be proportional to the amount of money invested and the amount of money contributed by the firm.
  • It will never become a publicly traded corporation.
  • The members’ liability is restricted to the unpaid amount of the shares they own.

Advantages of a Producer Company Registration

  • A Producer Company’s ownership and membership are limited to “principal producers” or “Producer Institution/s,” and member equity cannot be sold. As a result, no one can take over the business or deprive the primary producers of their livelihood.
  • The minimum number of producers required to form a PC is ten, but the maximum number of members is unlimited, and membership can be raised as needed. This makes it simple for even ten people to form a producer company.
  • Except for the clauses listed in the Producer Company Act from 581-A to 581-ZL that distinguish it from a regular private or limited company, the provisions of the Private Limited Company Act will apply to producer firms (refer the Producer Company Act for details). This gives a producer company a professional structure.
  • The members’ liability is restricted to the unpaid amount of the shares they own. As a result, the members’ personal assets are protected from business losses.

Documents and Process required for Producer Company Registration

  • The first step is to get all of the directors to sign a Digital Signature Certificate (DSC). The following documents are necessary to receive a DSC
  1. Aadhar Card
  2. Email ID
  3. Permanent Account Number (PAN) Card
  4. Contact Number
  5. Photo
  • After receiving the DSC, file form DIR – 3 along with self-attested identity evidence, address proof, and a photo to obtain the Director Identification Number (DIN).

  • The production company’s name must then be finalized. To do so, submit Form INC – 1 to the Registrar of Companies (ROC), detailing six names in order of preference as well as their importance. The words PRODUCER COMPANY must be at the conclusion of the name.

  • Once the above steps are completed, the following documents needs to be prepared for the company incorporation:
  1. MOA and AOA needs to be drafted for the incorporation of a producer company
  2. A professional declaration is required to be written in the INC – 8 format.
  3. All of the proposed company’s subscribers must sign an affidavit stating their legal capacity to participate as shareholders.
  4. The owner whose address will be utilized as the company’s registered office must provide a utility bill and a NOC. A lease agreement will be attached to the form if it is not owned.
  5. Form DIR – 2 and DIR – 8 will be used by the directors to grant their consent to act.
  6. All written documents will be attached to Form INC-7, INC-22, and DIR-12, and uploaded to the ROC website. The ROC will issue a Certificate of Incorporation after sufficient verification, and the company can begin operations.

FAQs on Producer Company under Companies Act, 2013

1. What is a Farmer Producer Company (FPC)?

Farmer Producer Company is a combination of cooperative organizations and Private Limited Businesses. Farmer Producer Companies, which are governed democratically and have equal voting rights regardless of the number of shares held, are registered under the Indian Companies Act, 2013.

2. Who appoints the members of the Board of Directors (BOD)?

Members who sign the Producer Company’s Memorandum and Articles may appoint at least 5 Directors to oversee the company’s operations until a Board of Directors is elected. Directors of the Board must be elected within 90 days after the Producer Company’s registration. Following that, the members will elect them at the annual general meeting, as needed.

3. Which statute governs a Producing Company?

The provisions of Sections 581A to 581ZL of the Companies Act, 1956, read with the Companies Act, 2013, and the rules made thereunder govern the creation and regulation of Producer Companies.

4. Can there be a PO for non-farmers?

Yes. The Producers’ Organization is a group of primary producers. If the item in question is a non-farm item such as handicraft or handloom, the PO will be for non-farmers. The PO’s goal is to improve income realization for its members (who are producers) by aggregating and, if possible, adding value.


To sum up, the Producer Company concept will not only ensure that the required regulations are followed, but it will also ensure that the farmers and other entities will earn maximum profit by establishing a producer company in India. Thus, it is also a step forward for the benefit of the agricultural sector in India.

Zarana Mehta: Zarana Mehta is an MBA in Finance from Gujarat Technology University. Though having a masters degree in Business Administration, her upbeat and optimistic approach for changes led her to pursue her passion i.e. Creative writing. She is currently working as Content Writer at Ebizfiling.
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