What is Producer Company Registration?

Producer Company Registration is a legal process that allows a group of farmers or agricultural producers to incorporate a special type of company under Section 581 of the Companies Act, 1956 (retained under the Companies Act, 2013). This structure empowers producers by giving them a corporate identity while ensuring their collective benefits in production, harvesting, procurement, pooling, grading, marketing, and selling of produce or services.

Unlike cooperatives, a Producer Company functions like a Private Limited Company, offering benefits such as limited liability, perpetual succession, professional management, and easier access to funding and subsidies.

It’s ideal for farmers, weavers, rural artisans, milk producers, fisherfolk, and others engaged in primary production. This legal framework helps bridge the gap between traditional farming and modern entrepreneurship.

✅ Benefits of Producer Company Registration
🎯 Key advantages for farmer-producer groups:

1️⃣ Provides legal recognition and credibility in the agricultural market
2️⃣ Access to government grants, subsidies, and bank credit
3️⃣ Encourages collective farming, processing, and distribution
4️⃣ Members enjoy limited liability and structured decision-making
5️⃣ Tax benefits under special agricultural exemptions
6️⃣ Enables members to retain control while enjoying corporate advantages
7️⃣ Easier to scale and expand through equity, investment, or joint ventures

📑 Documents Required for Producer Company Registration
📂 Mandatory documents checklist:

1️⃣ 🆔 PAN Card – Of all directors and members
2️⃣ 🧾 Aadhaar Card – For identity and address verification
3️⃣ 🖼️ Passport-size Photos – For all proposed directors
4️⃣ 📬 Registered Office Proof – Rent agreement or ownership deed
5️⃣ 📄 Utility Bill – Electricity or water bill for office address
6️⃣ 📝 Digital Signature Certificate (DSC) – For online filing
7️⃣ 🏢 Director Identification Number (DIN) – Required for each director
8️⃣ 📜 Memorandum & Articles of Association – Defines purpose and structure

👤 Eligibility for Producer Company Registration
🧾 Who can form a Producer Company?

• Minimum 10 individuals, all being producers (farmers, artisans, etc.), or

• Minimum 2 producer institutions (such as cooperatives or trusts), or

• A combination of both

• The company must only carry out activities related to primary produce, such as farming, harvesting, grading, dairy, fisheries, forestry, etc.

• The registered office must be within India

🔄 Process of Getting Producer Company Registration
🔁 Step-by-step registration roadmap:

1️⃣ Obtain DSC & DIN – For all proposed directors
2️⃣ Name Approval (SPICe+) – Apply through MCA portal for company name reservation
3️⃣ Draft MOA & AOA – Prepare documents aligned with producer company objectives
4️⃣ Filing of SPICe+ Form – Submit all incorporation documents to ROC
5️⃣ Verification by Registrar – Registrar of Companies verifies all credentials and documents
6️⃣ Certificate of Incorporation Issued – Upon approval, you receive CIN and Producer Company status

⏱️ Timeline for Producer Company Registration
⏳ Estimated duration to complete the process:

• Typically 20–30 business days

• Timeline depends on:

  • Availability of documents

  • Name approval delays

  • Registrar’s verification turnaround

  • Accuracy of submitted information

❓ Frequently Asked Questions (FAQs) about Producer Company Registration

1️⃣ Who is a "producer"?
A person engaged in an activity related to farming, livestock, forestry, or artisan production.

2️⃣ Can only farmers form a producer company?
Yes, only those involved in primary production or producer institutions are eligible.

3️⃣ How is it different from a cooperative society?
A producer company is governed by company law, offering corporate benefits like limited liability and easier funding.

4️⃣ What is the minimum capital required?
There's no fixed minimum, but typically ₹1 lakh is suggested for smooth registration.

5️⃣ Can a Producer Company raise investment?
Yes, through equity shares, loans from banks, or government funding schemes.

6️⃣ Is there any tax exemption?
Yes, agricultural income is exempt, and other benefits may apply depending on activities.

7️⃣ How many directors are required?
At least 5 directors, and a maximum of 15 as per the Act.

8️⃣ Can it be converted into another company type later?
No, a producer company cannot be converted into a private or public limited company.

9️⃣ Is a physical office required?
Yes, a registered office with valid address proof is mandatory.

🔟 Can it work across India?
Yes, once registered, a Producer Company can operate nationwide.