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Register Your Company as a Producer

Get the most sought-after help with producer company registration and boost your agriculture business like never before. Enjoy less government interference in business

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​Producer Company

A producer company has a unique business model. The title "Producer Company" indicates that only specific types of people, known as "primary producers," can become shareholders in the Producer Company. Primary producers are people who work in primary agriculture, such as:

Animal Husbandry: caring for or breeding animals on a farm.

Horticulture: Creating and growing plants, fruits, or vegetables.

Pisciculture: Fish farming.

Viticulture: Producing grapes.

Floriculture: Growing Flowers.

Forestry: Preserving forest.

Re-vegetation: Rebuilding or replanting land that has been destroyed.

Bee raising: Keep bees if you want to get honey.

The producer company might also do things like handlooms, handicrafts, etc. Farmers prefer to run their businesses as producer companies because they can do business in more than one state. This is not the case for cooperative societies. It also has less government interference in how a business is run and can get money from financial institutions for day-to-day expenses.


A producer company's purpose

The following are some of the several purposes for establishing a producer company in India:

  • production, harvesting, buying, sorting, pooling, handling, marketing, selling, and exporting of the members' primary produce.

  • for processing the produce of its members, such as storing, drying, distilling, brewing, venting, canning, and packaging.

  • mainly makes, sells, or gives its members machinery, equipment, or supplies that they can use.

  • To provide education on the principles of mutual aid to its members and others.

  • It provides technical services, consulting services, training, research and development, and any other activities that help its members' interests.

  • Generation, transmission, and distribution of power, land, and water resources, including their use, conservation, and communication.

  • insurance for producers or their main products.

  • promoting techniques of mutuality and helping each other out.

  • The Board decides on welfare measures or facilities for members that will help them.

  • Any other activity that goes along with or is a side effect of one of the above activities can also promote the idea that members should help each other.

  • Financing the buying, processing, selling, or other activities includes giving its members credit or other financial services.

For any of the above goals, a producer company must deal mainly with the products of its active members.


Features of the Producer Company

There are some things about the producer companies that make them stand out:

  • Producer companies are private limited companies.

  • Though it is a private limited company, it can have more than 50 members.

  • To make a producer company, you need at least 10 producers, or two or more producer companies, or a combination of these.

  • There must be at least 5 and no more than 15 directors for the producer company.

  • No other type of business structure, such as a Pvt. Limited Company, Public Limited Company, LLP, etc., allows for conversion.

  • The words "Producer Company Limited" will be added to the end of the company's name. For example, the Vanilla India Producer Company Limited.

  • There must be at least Rs. 5 lakh in paid-up capital.


The principle of "one man, one vote" applies to voting rights in the producer company, no matter how many shares the producer company owns.


The Advantages of a Producer Company

Advantages of Government schemes.

Equity Grant Scheme.

Credit Guarantee Fund (CGF).

Why Should You Choose a Producer Company?

1. Producer companies can use programs like "Rashtriya Krishi Vikas Yojana funds" and "National Food Security Mission" from the central and state governments.

2. To increase the capital base, each producer company is given a grant of up to Rs. 10 lakh.

3. The Credit Guarantee Fund (CGF) will pay for 85% of the loans that banks give to producer companies.

Advantages for the Organization's Members

1. The value that an individual member of a producer company receives for the fruits or other products that are pooled and supplied is established by the Board of Directors of the producer company.

2. The withheld price will be paid out later in cash or by giving out equity shares in proportion to the amount of produce given to the producer company.

3. Each member only gets a small return, even if they are all given bonus shares.

4. If there is any money leftover after paying everyone, it will be given to the members as a patronage bonus based on how much they helped the producer company do business.


​Registration Requirements for Producer Companies in India and Their Eligibility Requirements.

The following are the requirements for membership and capital:

Under the Companies Act of 2013, the applicant must meet the following membership requirements in order to register as a producer company:

1. In a producer company, there can be at least five directors.

2. A producer company can have at least ten people in it.

3. A producer company is made up of at least two different companies.

4. To start a producer company, you need a minimum of 5 lakh rupees in capital.

5. You can't turn a producer company into a public limited company.

Appointing Directors

1. Every producing company must have at least five and no more than fifteen directors. Except for an inter-state cooperative society that is set up as a producer company, it has more than fifteen directors for the first year after it is set up.

2. The Board of Directors is made up of the members who sign the Memorandum of Association and the Articles of Association. There must be at least five of them.

3. The election of directors will happen within ninety days of the producer company's registration.

4. Every director can hold their position for at least one year and no more than five years.

5. Every director who has retired is eligible to be appointed again.

6. At the Annual General Meeting, the current members choose or appoint the board's directors (AGM).

7. The Board can co-opt one or more expert directors, up to one-fifth of the total number of directors, or appoint any other person as an additional director for as long as the Board thinks is right, as long as the expert directors don't get to vote for the Chairman.


​What Documents Are Needed to Register a Producer Company in India?

When you ask the Ministry of Corporate Affairs to register a producer company, you need to send them the following documents:

1. Copy of PAN card attested by oneself.

2. One photo in color.

3. self-attested copy of any of the identity documents, like a driver's license, passport, or voter ID.

4. A self-attested copy of one of the following: a bank passbook or bank statement, a landline or mobile phone bill, or an electricity bill.

5. Electricity Bill, Telephone Bill, Mobile Phone Bill, or Gas Bill is required for the Company Address proof.

6. In the case of a rented property, a rent agreement and a NOC (No-Objection Certificate) for doing business and taking registration are needed.


​Using General Reserves to Invest

A producer company can invest its general reserves in one or more of the following, or in a combination of these:

1. Approved securities include fixed deposits, units, and bonds issued by the Central Government, State Governments, cooperative societies, or scheduled banks.

2. Cooperative bank, Central cooperative bank, State cooperative bank, or cooperative land development bank.

3. A scheduled bank.

4. The Indian Trusts Act of 1882 lists the securities that can be bought.

5. Shares and securities of any other interstate cooperative society or any other cooperative society.

6. Public financial institutions' shares, securities, or other assets.

An Audit of a Producer Company

Compliances Producer Company

A chartered accountant must do an internal audit of the accounts of every producer company at a set interval.

The appointed auditor for the internal inspection must report on the following:

in connection with the producer company:

1. The amount of debts that are due, as well as details about bad debts.

2. cash on hand as well as securities.

3. Specifics on assets and liabilities are presented here.

4. Transactions that contradict one another.

5. Funds provided by the producer company are to be used for the benefit of its directors as loans.

6. The Producer Company's donations and subscriptions.

7. Any other matter that the auditor thinks needs to be looked into.


​How can we help with the Producer Company Registration in India?

We at Certpedia offer complete solutions for registering a producer company in India. Our services include:

  • Company name research

  • Obtaining DSC and DIN

  • MOA and AOA drafting

  • Application filing

  • Follow up with the Ministry of Corporate Affairs.

You need the help of business experts to keep up with all of these requirements. Also, only experts like CA or CS should handle the process of registering a producer company in India.

Certpedia is here to help you because of this. With our full producer company registration services, you'll be able to set up your business quickly and start making money right away.


What does "Producer Company" mean ?
The Producer Company is a registered company according to the Companies Act of 2013. This is a different way to run a business. In a Registered Producer Company, only "primary producers," which are a type of person, can become shareholders.
What is a primary producer ?

Primary producers are those who do the most basic farming tasks, such as:

1. Animal husbandry means taking care of or breeding animals on a farm.

2. Horticulture is the process of making plants, fruits, or vegetables and growing them.

3. Growing flowers is called floriculture.

4. Fish farming is called pisciculture.

5. Viticulture: Producing grapes.

6. Forestry: Preserving forest.

7. Re-vegetation means putting plants back on land that has been damaged.

8. Keeping bees: keep bees to get honey.

9. Handlooms and handicrafts, etc.

Why do farmers like doing business with producer companies ?

Farmers prefer producer companies as a business model because they can operate in more than one state, unlike cooperative societies. It also has less government interference in how a business is run, and it can get money from financial institutions for day-to-day expenses.

Is the producer company a private one ?

Yes, producer companies are private limited companies.

What is the maximum number of people who can join an agro-producer company registration ?

Even though it is a limited company, it can have more than 50 members.

Who can create a producer company ?

To start a producer company, you need at least 10 people (producers), two or more producer companies, or a combination of these.

How many people can belong to a producer company ?

There must be at least five and no more than 15 directors for the producer company.

Is a producer company allowed to change ?

Any other type of business structure, like a Pvt. Limited Company, a Public Limited Company, an LLP, etc., can't be changed into a Producer Company.

What is the name of a producer company ?

A producer company's name must end with "Limited" if it is a limited company. As one example, see Vanilla India Producer Company Limited.

How much capital do you need to start an agriculture company ?

The producer company must have at least Rs. 5 lakh in paid-up capital.

In a producer company, how are voting rights defined ?

The principle of "one man, one vote" applies to voting rights in the producer company, no matter how many shares the producer company has.

How do I register an agricultural company in India ?

Step-by-step instructions for the incorporation of a producer company in India, also known as the registration process of a farmer-producer organization, are as follows:

1. Choose a name for the business that stands out.

2. Use the RUN application on the MCA web portal to save the name of the producer company.

3. Getting the DSC and DIN of the company's directors

4. Drafting MOA and AOA of the company

5. Putting in an online application to start a producer company

6. The Ministry of Corporate Affairs will take a look at the application.