A Producer Company is a company, formed with an objective of production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit. Term “Produce” means things that have been produced or grown, especially by farming. This means that, a Producer Company deals primarily with agriculture and post-harvest processing activities.
A Producer Company can be formed by 10 or more Individuals as producers.
Two or more producer institutions or a combination of 10 or more producers and producer institutions.
A minimum capital of Rs. 500,000 is required to incorporate a Producer Company.
The share capital of a Producer Company shall consist of equity shares only.
The shares held by a Member in a Producer Company, shall be in proportion to the backup of that company.
There should be minimum 5 directors and maximum of 15 directors in aProducer Company.
A full time chief executive (CEO) should be appointed by the board.
There is no maximum limit of the members.
The Producer Company in India cannot be deemed as a public company.
There should be at-least four boards meetings every year and the meetings should not be held less than once every three months.
Co-operatives have largely been state promoted, with a focus on welfare rather than to do business on commercial lines and more State government intervention in the management of Co-operatives.
Whereas Companies Act is central legislation comparatively more liberal and minimal government control in the management of the Company.
A Producer Company is hybrid of Company and Co-operative Society.
It combines the goodness of a co-operative enterprise and vibrancy and efficiency of a company and accommodates the unique elements of cooperative business with a regulatory framework similar to that of a company.
In India, a vast majority of farmers are marginal farmers with minimal land holdings individually. This restricts them to use the latest technologies in farming. This results in to lower economies of scale. A Producer Company is aimed at organizing a group of marginal farmers and ensuring larger economies of scale.
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Photographs
Recent passport-sized photographs of all Directors and Members.
PAN Card
PAN Card copies of all Directors and Members.
ID Proof
Valid ID proof such as Driving License, Passport, or Voter ID for all Directors and Members.
Registered Office Address Proof
Electricity Bill or any other utility bill (not older than 2 months) for the address proof of the company’s Registered Office.
Special Requirement
Proof of farming, which may include:
7/12 extracts of Agricultural Land, or
Certificate from the District Tahsildar.
(Specific proof of farming may vary depending on the state regulations.)
A dedicated compliance professional will reach out to you to gather the required documents along with a simple checklist. Complete the checklist and submit it along with the necessary documents for verification. Our expert team will thoroughly review your submissions and initiate the registration process. Throughout the procedure, your assigned compliance expert will keep you informed about the status of your company registration.
After submitting your documents and checklist, we will begin the application process for your Digital Signature and proceed with securing approval for your Producer Company's name. You can propose up to three unique and business-relevant names for your company. We will file the name application using Part A of the SPICe Plus form.
A Producer refers to any person or entity engaged in the production or cultivation of goods, especially in farming, horticulture, animal husbandry, forestry, or related activities.
A Producer Institute is an organized group or entity formed by producers to collectively carry out production, procurement, harvesting, grading, pooling, marketing, or selling of their goods or services to enhance their economic stability and market reach.
A Producer Company license is valid perpetually unless the company is legally dissolved or ceases its operations under the governing laws.
A Producer Company is governed by the provisions of the Companies Act, 2013, specifically under Chapter IXA (Provisions related to Producer Companies).
A Producer Company requires a minimum of 10 producers (individuals) or two producer institutions to be incorporated.
Marketing Producer Companies – Focused on marketing and selling produce. Production Producer Companies – Engaged in production and manufacturing. Financial Producer Companies – Offering credit or loans to members. Processing Producer Companies – For processing agricultural produce. Infrastructure Producer Companies – Building facilities like storage or irrigation.
The incorporation process typically takes around 15-20 working days, depending on the completion of documentation and government approvals.
We’re here to help! Reach out to us at +91 72074 46677 for a free consultation. Our experts will guide you through every step of the process, ensuring a seamless registration experience.
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