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Producer Company

A Producer Company is a special type of company formed under the Companies Act, 2013, aimed at empowering farmers, agriculturists, and rural producers.

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Benefits of a Producer Company

  • Simplified Financial Model: Operates only among members, reducing credit risk.

  • No RBI Approval Required: Registered with the MCA, not regulated by RBI for core operations.

  • Encourages Savings & Loans: Promotes the habit of thrift and savings among members.

  • Limited Liability: Members’ liability is limited to their share capital.

  • Separate Legal Identity: The company enjoys perpetual succession and can own property in its name.

Ideal For

  • Farmers, producers, and agriculturists

  • Cooperatives and self-help groups (SHGs)

  • Fishermen, weavers, dairy producers, and rural artisans

  • Entrepreneurs promoting rural development and sustainability

Registration Process

  • Business Feasibility & Consultation
    Understanding your producer group’s structure and vision.

  • Name Reservation & Documentation
    Filing for name approval and preparing documents like MoA, AoA, declarations, and producer activity details.

  • Incorporation Filing
    Submission of incorporation forms (SPICe+, AGILE-Pro) with MCA including DIN, DSC, PAN, and TAN.

  • Registration Certificate Issuance
    Receipt of Certificate of Incorporation and commencement of operations.

  • Post-Incorporation Compliance
    Support for opening a bank account, issuing share certificates, and ensuring compliance with ROC and Producer Company rules.

Documents Required

  • PAN and Aadhaar of all proposed directors and members

  • Utility bill or bank statement for address proof

  • Registered office address proof (rent agreement, NOC, utility bill)

  • Passport-size photographs of all directors

  • Details of agricultural or producer activities

  • Digital Signature Certificate (DSC) and Director Identification Number (DIN)

What You’ll Get

  • Certificate of Incorporation

  • PAN & TAN of the company

  • DIN & DSC for all directors

  • Customized MoA & AoA for Producer Company

  • ROC compliance support

  • Ongoing advisory for legal, tax, and agricultural scheme benefits

Frequently Asked Questions

Have a look at the answers to the most asked questions

A Producer Company is a corporate body of farmers or producers formed to improve their incomes through collective action and business operations.

A minimum of 10 individuals or 2 producer institutions are required.

It can carry out activities like production, harvesting, procurement, grading, pooling, handling, marketing, and export of primary produce.

Yes, the minimum paid-up capital is â‚č5 lakh.

Yes. Profits are distributed as patronage bonus or dividend, depending on the member’s participation in business.

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