Producer Company

What is a Producer Company?

A Producer Company is a type of company that is incorporated under the Companies Act and aims to achieve better agricultural production, importation of goods, procurement and selling, and distribution of produce. It is composed of a group of individuals engaged in primary produce production or having one or more goals linked to primary produce.

Features of Producer Company

  1. To form a Producer Company, a minimum of 10 producers are required.
  2. The number of directors required to form a Producer Company is between 5 and 15.
  3. It is not possible to convert a Producer Company into a Public Company.
  4. The minimum paid-up capital requirement for a Producer Company is Rs. 5 Lakhs or more.
  5. Producer Companies have better access to loans and are supported by NABARD.


ERA Legal Services producer Company Package

The Services which are included in our package are as Follows:
✅ Digital Signatures of Producers
✅ DIN of Directors
✅Filing of Spice form
✅Issue of Incorporation Certificate along with PAN and TAN
✅Memorandum of Association
✅Articles of Association
✅Provisional PF ESI Registration
✅GST Registration
✅MSME Registration

Types of Producer Companies

There are following types of Producer Company:
• Production Businesses: These types of Producer Companies are those which are mainly involved in production, procurement or manufacture of any primary produce for its members.
• Marketing Businesses: Even a business that is involved in the marketing or promotion of primary produce or provision of educational services of its members can constitute itself as a Producer Company.
• Technical Services Businesses: Any company offering technical assistance to producers, providing training and education or conducting research and development can register as a Producer Company.
• Financing Businesses: Any business financing producer activities, be it marketing, producing, development domain can register as a producer company.
• Infrastructure Businesses: Business involved in providing infrastructure to producers whether, in the form of electricity, water resources, irrigation techniques, land utilization may constitute themselves as a producer company.

Documents Required for Producer Company Incorporation

  1. Pan Card of all Directors and Subscribers
  2. Identity Proof such as Voter ID Card, Driving License, Aadhar Card, or Passport of all Directors and Subscribers
  3. Address Proof such as Bank Statement, Mobile Bill, Telephone Bill of all Directors and Subscribers
  4. Passport Size Photographs of all Directors and Subscribers
  5. Current Electric Bill or Utility Bill as Registered Office Proof
  6. Rent Agreement (if applicable)
  7. Farmer Certificate of all Members

Producer Company Incorporation Procedure

Step -1 Arrange all Required Documents:
The first step is to arrange all the documents and send the same over the email / WhatsApp to us. Once all the Documents are Received, we will Start the Further Process.
Step -2 DSC and Name Availability:
The Next Step is to Start the Further Process of Digital Signature and Checking the Name availability.
Step-3 Preparation of Documents:
The Next Step is Preparation of Documents to be Submitted at Department.
Step-4 Filing of Spice Form:
The Next Step is Submission of Spice 32 Form at Department.

Conditions for Incorporating Producer Company

1. Ten or More Individuals, Each of Them Being a Producer
2. Two or More Producer Institutions
3. Combination of ten or more individuals and producer institution

Minimum Requirements for Incorporating Producer Company

  1. Members are compensated for the pooled and supplied products based on the Director’s decision, distributed as cash or equity shares, with bonus shares awarded in proportion to their holdings.
  2. Remaining funds may be allocated as patronage bonus after reserves and limited returns are provided, with distribution based on participation in business activities and provided in cash or equity shares.
  3. Members can receive credit facility for up to 6 months as financial assistance.
  4. Loans and advances can be granted against specified securities, with repayment terms ranging from 3 months to 7 years.

Advantages of Producer company

1. Minimum 5 Directors
2. Maximum 5 lakh as Paid Up Capital

FAQ on Producer Company

Q1, what is the Minimum Number of Directors Required to Form a producer Company?
Minimum of five directors are required to register a Producer Company.

Q2. Who can Become Member in producer Company?
Any individual/organization can become the member of Producer Company.

Q3. What is Minimum Capital required for the Formation of Producer Company?
Ans.: Minimum authorized capital required for the formation of Producer Company is Rs. 5 Lakhs.