Producer Company Registration

Producer Company Registration

Producer Company Registration

A Producer organization is a legal entity that is registered under the Companies Act and has at least 10 primary members. The main objective of a producer company is to facilitate the business of its members by producing, handling, manufacturing and marketing products. If you are associated with agriculture, horticulture, animal husbandry, poultry farming and any other allied activities you can avail the benefits of forming a producer company.

Meaning of a Producer Company

A producer company is a form of cooperative register under the Companies Act, 1956. It is form by the primary producers, i.e., farmers or people who are involve in the production of goods, either agricultural or non-agricultural. A producer company can form for producing any kind of goods.

similarly, The objective of a producer companies are to uplift the economic condition and well-being of its members. The company carries on its activities for the mutual benefit of its members in accordance with the principle of one member, one vote. The members carry on trade or business among themselves, irrespective of their size.

A producer company has 10 or more members and cannot have more than 1000 members. It can have corporate bodies only as associate members and not as ordinary members.

Types of Producer Companies

The following types of producer companies may register:

  1. Producer companies set up by farmers, including individual farmers or small and marginal farmers, to engage themselves in production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of members or import of goods or services for their benefit;
  2. Similarly, Producer companies set up by producers (whether or not primary producers) to engage themselves in production, harvesting, procurement, grading, pooling, handling, marketing, selling or export of primary produce or products thereof;
  3. The Producer companies set up by a producer institution or an association of such institutions to engage themselves in production processing or manufacturing;
  4. Producer companies set up by any association of persons engaged in any industry or business to carry out any activity for their mutual benefit.
  5. The Producer companies set up with the object of providing services including processing and manufacturing facility to its members;
  6. Producer companies set up by persons resident in a village or group of villages having homogeneous socio-economic conditions for carrying out any business activity for the benefit

Benefits of registering your producer company:

  • Agriculture-based businesses can jointly purchase inputs like seeds and fertilizers and get better deals on them.
  • After that, They can also sell their produce together at better prices as compared to selling individually.
  • similarly, Primary producers can maximize profits by reducing middlemen in the supply chain.
  • A producer company is similar to any private limited company or an LLP but has certain additional eligibility criteria. Here are some of the eligibility requirements for forming a producer company:
    • At least two producers must associate themselves while incorporating a producer company. This number cannot be less than 10 or more than 2,000.
    • After that, At least half of the directors that are appoint should producers. The other half should consist of professionals from fields like accounting, law, agriculture etc..

What are the documents required for producer company registration?


  1. Photocopy of PAN card of each director
  2. Photocopy of Aadhaar Card or Voter ID of each director
  3. Address proof of business premises – electricity bill/municipal khata copy/registered rent agreement/property tax receipt, etc.
  4. Copy of canceled cheque having pre-printed name and account number of the entity.
  5. Passport size photographs of directors (2 copies)
  6. Digital signature certificate (DSC) for each proposed director/KMP

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