Producer Company

A Producer company is a legally recognized body which formed by farmers/agriculturist with an aim to increase income and profitability ratio and improve their standard of living.
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Under companies Act 1956, A producer company can be formed by 10 (or more) Individuals or 2 (or more) institutions or a combination of both (10 individuals + Institutions). A producer companies business objective must be one or more of the following:

• Export
• Harvesting
• Procurement
• Grading
• Pooling
• Production
• Handling
• Marketing
• Selling

As per Section 581B the objective of a producer company shall relate to all or any of the following matters:

  1. Processing (including preserving, drying, brewing, distilling, vinting, canning) and packaging of produce.
  2. Manufacturing of equipment’s/Machineries and Sale of equipment’s/Machineries.
  3. Offering consultancy services, technical services, training, research and development and all other activities of promotion of the interest of its members.
  4. Insurance of producers or their primary produce
  5. Providing education on the mutual assistance of its members and others.
  6. Generation, Transmission, and distribution of various powers, revitalization of land and water resources related to be primary produce.
  7. Financing of procurement, processing, marketing or other activities specified in clauses (a-j) which include extending of credit facilities or any other financial services to its Members
  8. Other activities that may promote the principles of mutuality and mutual assistance amongst the Members in any other manner

Every Producer Company shall deal primarily with the produce of its active Members for carrying out any of its objects specified in the above section

Benefits of Producer Company

The following are the benefits enjoyed by a Producer Company

Single Market

All the producers of the Producer company can supply the products in the producer company as determined by the director. And they will receive a value for the supplied products.

Profit Sharing

If the producing company makes profit after selling the products then the same shall be divided amongst the producers. That means producers have chance to increase their profit by pooling in the individually pooled products.


Producers can get bonus shares in portion to the amount held.

Financial Assistance

Members of Producer Company are also eligible to get financial assistance by way of credit facility for a period not exceeding 6 months.

Loans and Advances

Loans are provided to the producer member against security, repayable within a period not exceeding seven years from the date of disbursement of such loans or advances.


Basic Requirement to form a Producer Company

• 10 or more producers (Individuals) or 2 or more producer institutions. No upper limit on the number of members.
• A minimum capital of 5,00,000. Rupees is required.
• Minimum 5 Directors (Max 15).

Documents requirement

For Each Director and shareholder
1. PAN card* (Mandatory for Indians & others if held)
2. Passport* (for NRI, Foreigners, and Indians if held)
3. Address proof (any 1 of) (Not more than 2 months old)
  a. Bank Statement
  b. Phone Bill
  c. Mobile Bill
  d. Electricity Bill

(Note - For NRI & Foreigners Documents issued by foreign authorities or signed outside India must be notarized & apostilled)

For Registered Address
  1. NOC from Owner*
  2. Rent Agreement*
  3. Utility Bill*

How to Register Producer Company?

Once the founders of the Producer company finalize on the name of the company. Then the process of incorporation of Company starts as below (Note: Name of the company can be different from the brand name, it is not mandatory to have same brand name as a company name)

Step 1: Application for DSC (Digital signature certificate) and DIN (Directors Identification Number)

Step 2: Apply for the Name reservation

Step 3: Drafting & filing MOA & AOA to register the producer company

Step 4: Apply for the PAN and TAN of the company

Step 5: Issue Certificate of Incorporation along with PAN and TAN of the company

Key Deliverables

a. DSC of directors and shareholders

b. PAN and TAN number

c. Certificate of incorporation

d. MOA & AOA of the company

Producer company incorporation

Why Choose Us

Entrepreneur Friendly

We make the process so easy and fast that you will not even feel the headache of all the paperwork, and our professionals will provide you all the promised deliverable within a given span of time.

Experienced Professionals

All our professionals are qualified and specialized in that particular work. Making sure no mistakes are done at the time of filings with the authorities so that company won’t have to pay any penalties due to mistakes.

One Stop for All Your Requirements

We support you throughout the journey of your business, from the incorporation, Accounting and taxation support, Secretarial compliance support, and Legal support.


We believe that cost plays a vital role in any company’s growth stage, that’s why we do not surprise our clients with hidden charges, you pay what you see in the initial proposal.

Frequently Asked Questions

Yes, A producer company can sell its products in the open market and make profit. Out of which later the profit can be divided amongst the members of the company.
Yes, a producer company can make finished products such as tomato ketchups, fruit jams, Juices and pack them and sell to the suppliers or through retail or any other channels.
Yes, it is mandatory to have shareholders of the producer company to be the producers only. One or more producer companies can become shareholders as well.
Yes, Producer companies have to follow the standard compliances that are described in the companies act 2013. More or the less producer company compliances are similar to private limited company compliances