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Producer Company

A producer Company is a company incorporated for production, harvesting, procurement, grading, pooling, handling, marketing, selling, the export of primary produce of the Members or import of goods or services for their benefit. Hence, a producer company primarily deals with agriculture & post harvesting activities. The concept of producer companies was introduced to empower farmers.

It can be formed by 10 or more producers or two or more producer institutions or a combination of 10 or more producers and producer institutions. It can only have equity capital, require a minimum of five directors and authorized capital of Rs. 5 lakh. The important point is to note that it cannot be converted into a public company but can be converted into a multistate co-operative society. Production businesses, marketing businesses, technical service businesses, financing businesses & infrastructure businesses providing services to producers can be registered as a producer company. The process of registering a producer company is similar to a private limited company.

Why the Producer Company?

SEPARATE LEGAL ENTITY A Producer company is considered as a separate legal entity for the law. Accordingly, it can hold property in its name, sue & be sued, borrow in its name, etc.
LIMITED LIABILITY The members are considered separate from the company. So, they are not liable for the creditors of the company.
NO CLAIM ON PROPERTY OF COMPANY Since, it is considered as a juristic person, no member can claim any rights over the property of a Producer Company as long as it is going concern.
PERPETUAL SUCCESSION The existence of a producer Company does get affected due to the departure or death of any member.
CREDIBILITY A Producer Company enjoys better credibility as it is registered and managed by the central government in contrary to mutual benefit organizations that are registered & monitored by state governments.

Producer Company Registration Process

Documents required

For Directors & Shareholders

1. Self Attested PAN Card copy

2. Self Attested copy of any one of the Identity Proof(Voter's ID/Passport/Driver's License)

3. Self Attested copy of Address Proof in the name of the director (Any utility bill i.e., mobile bill/water bill/ electricity bill, or bank statement which should not be older than two months)

4. Passport-sized photograph

For Registered Office

1. Rent Agreement (Notarised: For rented property)

2. Sale Deed/Property Deed in English (in case of owned property)

3. No-objection Certificate from the property owner

4. Latest Electricity Bill / Mobile or Telephone Bill / Latest Bank Statement/Gas Bill

Frequently Asked Questions

At least 5 people are required to register a producer company in India.

Once a Company is incorporated, it will be active and in-existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and may be struck off from the register after some time. A struck-off Company can be revived for a period of up to 20 years.

It is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a DIN. It never expires and a person can have only one DIN.

It is an electronic version of a physical signature. It can be used to verify documents in the company registration process.

The books of a producer company need to be audited from its very first year. And in the case of the turnover crosses Rs. 5 crore, it must employ a full-time company secretary to manage its affairs.

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