Producer Company

Producer companies are preferred choice of business model amongst farmers because producer company areas of operations are not restricted to particular state as in the case of Co-operative society.

A producer Company is a group of people involved in the production of primary produce or having one or more goals relating to primary produce.

A producer company is a hybrid between a private limited company and a cooperative society.

It combines the goodness of a cooperative enterprise and the vibrancy and efficiency of a company.

Moreover, it has lesser government intervention in running company and can also access to financial institution for raising money for day to day expenses requirement.

The term “Producer Company” indicates that only certain categories of persons who are known as “primary producer”, can become shareholders in the Producer Company. Primary Producer means those persons who are engaged in primary agriculture activities such as:  Animal Husbandry, Horticulture, Floriculture, Pisciculture, Viticulture, Forestry, Re-vegetation, Bee raising. There are some other business like handloom, handicraft etc. which can be activities of producer company.

 There are some unique features of Producer Companies:

  • Producer companies are private limited companies.
  • Minimum 10 or more individuals, being producer, or any two or more producer companies, or combination thereof, are required to form Producer Company.
  • Producer Company shall have at least 5 but not more than 15 directors.
  • Conversion is not possible into any other business structure such as Pvt. Limited company, Public Limited Company, LLP etc.
  • Producer Company shall have words “Producer Company Limited” at the end of its name. For example: Sahyog Agro Producer Company Limited.
  • Voting rights in the producer company is aligned with the principle of “one man-one vote”, regardless of shareholding in the producer Companies.

Types of Producer Companies

Production Businesses

The main type of producer companies are those involved in production, procurement or manufacture of any primary produce for its members (for further sale) and to others.

Marketing Businesses

Even a business involved in the marketing or promotion of primary produce or provision of educational services to members and others can constitute itself as a producer company.

Technical Service Businesses

Any business offering technical assistance to producers, providing training and educational services or conducting research and development can register as a producer company.

Financing Businesses

Any business financing producer activities, be it in the production, marketing or development domain, can register itself as a producer company.

Infrastructure Businesses

Businesses involved in providing infrastructure to producers, whether in the form of electricity, water resources, irrigation techniques, land utilisation, or consultation with regard to the same, may constitute themselves as a producer company.

Digital Signature - 800
Director Identification Number - 500
Name Application - 1,000
Registration Fees - FOR 5 LAKH CAPITAL
Bond Paper + Notarization - 350
Pan & Tan - 200
Lisoning Charges -
Other Expences -
Professional Fees -
Service Tax


    • 5 Digital Signature
    • 5 DIN (Director Identification Number)
    • Drafting of Docuemnts
    • Notarization of Docuemnts
    • Stamping of Docuemnts
    • Filing of Forms
    • PAN card of Company
    • TA


Limited Liability

All businesses can run the risk of not being able to repay their liabilities. It is a necessary evil. In this event, a sole proprietor (or individual producer) would be personally liable for all the debts of the business. The members of a producer company, on the other hand, have unlimited liability as the company is an entity in itself. Therefore, only the amount invested in the business would be lost; the personal property of the directors would be safe.

Economies of Scale

Only 15% of India's farmers own over two acres of land. The majority of farmers are, therefore, unable to safely unlock the advantages that come with economies of scale. With a producer company, multiple farmers can work as a collective and lower costs, reduce risk and even get acccess to better credit facilities. This enables better planning and bargaining power with buyers.

Better Management

Rather than a single farmer managing the entire business, work within a producer company can be divided between its directors. The entity is managed by the Board of Management, which has a tenure of five years. Also, a producer company has a separate legal existence, which means that it isn't affected by the death of any of its members.



    • Minimum 5 Directors
    • Minimum 10 or more individuals, being producer, or any two or more producer companies, or combination thereof



    • PAN Card - Self-Attested & scanned copy
    • IDENTITY PROOF (Self-Attested & scanned copy ANY Driving License / Voter ID / Aadhaar Card / Passport
    • ADDRESS PROOF - Self-Attested & scanned copy (ANY 1) Bank Statement / Mobile Bill / Telephone Bill / Electricity Bill


    • Address proof should be in the name of “Applicant only”
    • Address proof should not be older than 1 Month


    • NOC  (No Objection Certificate from Owner) On Plain Paper






Initial Documentation

  • Discussion of Documents
  • Receipt & Checking of Required Documents
  • Signing of Required Documents




Application of DSC ( Digital Signature Certificate) 

           2 DAYS


Application for DIN (Director Identification Number 

           1 DAY


Application of Name

          3 DAYS


Drafting of MOA, AOA & other declaration

          2 DAYS


Application of Registration of Company

          9 DAYS


Application of PAN Card & TAN

           2 Days


In case of Public Limited Company, Minimum Five (5) and Maximum Fifteen (15) numbers of directors are required.
Minimum 5 Lakh capital requirement is prescribed by the government.
Minimum 10 or more individuals, being producer, or any two or more producer companies, or combination thereof, are required to form Producer Company.
Digital Signature Certificate (DSC) as the name suggests it is a digital signature of an individual and it is required for filling the e-forms of company incorporation electronically to Ministry of Corporate Affairs.
The Unique Number is required to allot to an Individual which remains valid for whole life of the individual and is required to become director of any company.
• We just need to find a unique name as prefix and promoters need to provide name of the proposed company along with significance of word. • Make sure that company name is not similar to any other Private Limited,OPC, LLP or Public limited company. Also, do check If your first is not a registered trademark taken by anybody under the IP Act. • Make sure the name is not too generic to be accepted by Registrar and also, try not to use abbreviations, adjectives. • While choosing the name make sure that name should contain the objective of the business like Construction, Trading, Marketing, Technology , Engineering, Agro etc. • Producer Company shall have words “Producer Company Limited” at the end of its name. For example: Sahyog Agro Producer Company Limited. • Finally before selecting Names it will be advisable to check on MCA Portal, MCA Guidelines and Trade Mark site the availability of Name.
MOA & AOA of the company defines all the rules and regulations and the working flow of company. It also defines everything about the company’s objects, capital, identity, goals and working pattern. After the name of the company is select the Memorandum of Association and Articles of Association of the company is required to be drafted, the last page of the MOA and AOA is known as subscriber sheet which need to be filled in by the promoters in their own hand writing including their personal details and shareholding ratio.
The Common Seal is the official signature of the company. Any documents on which Common seal is affixed, is deemed to be signed by the company.
No, the company incorporation process is online. You can email / Upload the required documents.
To incorporate a company we required approximately 15 to 20 working days. The time taken for incorporation will depend on submission of relevant documents by the client and speed of Government Approvals. To ensure speedy process of incorporation, please choose a unique name for your Company and ensure you have all the required documents are provided before starting the incorporation process.
‘Company Address’ is the address of the Registered Office of the proposed company which is used for all official communications. A temporary address is required, at the time of registration, which could be the address of any of the including Directors. Post registration process applicant has to provide the permanent business address of the registered office with all the documentary proofs of address, ownership
Conversion is not possible into any other business structure such as Pvt. Limited company, Public Limited Company, LLP etc.

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