Producer Company Registration in India
Build a Farmer-Owned Business with Legal Recognition & Collective Growth
Starting at ₹19,999/- + GST & Government Fees
Planning to bring farmers, agriculturists, or rural producers together under one legal entity? Producer Company registration allows primary producers to work collectively while enjoying the benefits of a corporate structure.
A Producer Company combines the values of a cooperative with the legal strength of a company, enabling producers to improve market access, reduce costs, and increase profits.
At Founder’s Buddy, we provide end-to-end assistance for Producer Company registration — from eligibility assessment to incorporation and post-registration compliance.
What’s included in Your Producer Company Registration Package:
DSC and DIN
Company Name Approval
E-MoA & E-AoA
PAN & TAN
Certificate of Incorporation
Ongoing Expert Support
Join 500+ businesses who trust Founder’s Buddy for hassle-free Producer Company registration.
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Why Choose Us?
Fast turnaround
100% MCA compliance
Expert drafting & Guidance
Transparent
Pricing
What is a Producer Company?
It is registered under Sections 378A to 378ZU of the Companies Act, 2013 and operates on cooperative principles with a structured corporate framework.
Key Benefits:
Registered as a companyRegistered as a company
Managed by a Board of Directors
Owned and controlled by producers only
Key Features of a Producer Company
Producer-Based Membership:
Only individuals or institutions involved in primary production activities can become members.
Legal Status:
Functions as a private limited company but without the label “Private Limited” in its name.
Minimum Formation Requirements:
Minimum of 10 individual producers or 2 producer institutions
Minimum of 5 directors (can extend up to 15)
No prescribed minimum capital; however, a reasonable capital contribution is advisable
Perpetual Succession:
Exists independently of changes in membership
Limited Liability:
Members' liability is limited to the unpaid amount of their share capital
Profit Sharing:
Members receive part of the surplus as patronage bonus, based on their participation in the business
Types of Producer Companies in India
Producer Companies can be classified based on the nature of activities they undertake:
1. Agricultural Producer Company
Formed by farmers engaged in:
- Crop cultivation
- Seed production
- Fertilizer supply
- Crop marketing
Example: Farmer Producer Company (FPC)
2. Dairy Producer Company
Formed by milk producers involved in:
- Milk collection
- Processing
- Packaging
- Distribution of dairy products
3. Fisheries Producer Company
Formed by fishermen for:
- Fish farming
- Processing
- Storage
- Export of fish products
4. Horticulture Producer Company
Focused on:
- Fruits and vegetables
- Floriculture
- Plantation crops
5. Handloom & Artisan Producer Company
Formed by artisans and weavers for:
- Handloom products
- Handicrafts
- Traditional goods marketing
6. Livestock Producer Company
Engaged in:
- Poultry farming
- Goatery
- Cattle rearing
- Animal feed supply
7. Organic Producer Company
Focused on:
- Organic farming
- Certification support
- Marketing of organic produce
Need help? Let Our Experts Guide You
You focus on growing your business — we’ll handle the legal compliances and regulatory complexities
Difference Between Cooperative Society and Producer Company
| Basis | Cooperative Society | Producer Company |
|---|---|---|
| Governing Law | Cooperative Societies Act (State or Multi-State) | Companies Act, 2013 |
| Registration Authority | Registrar of Cooperative Societies | Registrar of Companies (ROC) |
| Area of Operation | Mostly limited to a state | Can operate across India |
| Management | Controlled by government policies | Managed by elected Board of Directors |
| Voting Rights | One member, one vote | One member, one vote (based on patronage) |
| Transparency | Moderate | High (company law compliances) |
| Professional Management | Limited | Encouraged |
| Profit Distribution | Limited dividend | Patronage bonus + limited dividend |
| Compliance | Less structured | Well-defined corporate compliances |
| Ideal For | Small local groups | Growth-oriented producer groups |
Conclusion: A Producer Company combines the benefits of a cooperative society with the efficiency and transparency of a corporate structure, making it more suitable for long-term growth.
Minimum Requirements for Producer Company Registration
To register a Producer Company in India, the following conditions must be met:
A) Members Requirements
- Minimum 10 individual producers
or
- Minimum 2 Producer Institutions
B) Directors Requirements
- Minimum 5 Directors (maximum 15)
- All Directors must be producers or representatives of producer institutions
C) Capital Requirements
- No minimum paid-up capital prescribed by law
D) Name Requirements (Mandatory)
The company name must:
- End with “Producer Company Limited”
- Reflect producer-related activities
- Not include misleading words like Bank, Finance, or NBFC
- Be approved by the MCA Name Approval process
Example: GreenGrow Farmers Producer Company Limited
Benefits of Registering a Producer Company
Collective Strength
Producers benefit from bulk production, procurement, and selling.
Better Market Access
Improves bargaining power and eliminates middlemen.
Government & Institutional Support
Eligible for schemes and funding from NABARD, SFAC, and State Governments.
Legal & Corporate Recognition
Operates as a company with transparency and accountability.
Tax Benefits
Agricultural income is generally exempt under Section 10(1) (subject to conditions).
Sustainable Growth
Encourages long-term business planning and producer empowerment.
Limitations and Challenges
Membership Restriction: Only producers or producer institutions can be members; no external investors or FDI permitted
Regulatory Burden: Requires compliance with ROC filings, board meetings, audit requirements, etc.
Initial Setup Complexity: Legal and documentation requirements are more stringent than informal cooperatives
Limited Awareness: Concept is still emerging in many regions; lack of awareness can hinder participation
Need for Capacity Building: Producers may require training in corporate governance, financial literacy, and regulatory compliance
Step-by-Step Producer Company Registration Process
Step 1
Initial Consultation & Planning
o Evaluate eligibility and member roles
o Decide on name, registered office, and authorized capital
Step 2
Digital Signature Certificate (DSC) Procurement
o Required for all proposed directors to sign documents electronically
Step 3
Director Identification Number (DIN) Application
o Apply through the SPICe+ form
Step 4
Company Name Reservation
o File SPICe+ Part A on MCA portal for name approval with the suffix “Producer Company Limited”
Step 5
Drafting of Incorporation Documents
o MoA (Memorandum of Association)
o AoA (Articles of Association)
o Declaration by directors and affidavits
Step 6
Filing of Incorporation Forms
o Submit SPICe+ Part B along with all supporting documents
Final Step
Issuance of Certificate of Incorporation
o MCA issues the COI along with PAN & TAN
Documents Required for Producer Company Registration
From Members and Directors:
PAN Card
Aadhaar Card / Passport / Voter ID
Recent Passport-size Photograph
Address Proof (Utility Bill / Bank Statement)
Agricultural Activity Proof (any of the following):
o Land Ownership Documents
o Krishi Card or Farmer ID
o Income Certificate showing agricultural income
For Registered Office:
Latest Utility Bill (Electricity, Water, etc.)
Rent Agreement (if the property is leased)
No Objection Certificate (NOC) from property owner
What’s Included in our Producer Company Registration Package
Our company registration package includes everything you need to incorporate a Producer Company online — no hidden fees, no delays.
Pricing
Cost of Private Limited Company registration
Our all-inclusive packages starts at ₹4,999 + Govt Fees
Packages
Pricing
Cost of Private Limited Company registration
Our all-inclusive packages starts at ₹4,999 + Govt Fees
DIN for up to 2 Directors
Class 3 DSC
Company Name Approval
Drafting of MoA & AoA
PAN & TAN Application
Incorporation Certificate
MCA Compliance Consultation
Post-registration Consultation
Turnaround Time
5–7 Business Days
(Faster with complete documents)
Basic Package
Starting at
Rs.19,999 /-+ GST and Govt. Fees
DIN of Directors
Class 3 Digital Signature Certificates
Company Name Approval
Drafting of MoA & AoA
PAN & TAN Application
ESIC Registration
PF Registration
Incorporation Certificate
Post-registration Consultation
Call us on +91 9167123781 / 82
Get Started Now
Premium Package
Starting at
Rs.23,999 /-+ GST and Govt. Fees
DIN of Directors
Class 3 Digital Signature Certificates
Company Name Approval
Drafting of MoA & AoA
PAN & TAN Application
ESIC Registration
PF Registration
Incorporation Certificate
Share Certificates
Appointment of First Statutory Auditors & Filing of ADT-1
Filing of INC-20A (Commencement of business)
Call us on +91 9167123781 / 82
Get Started Now
Need help? Let Our Experts Guide You
You focus on growing your business — we’ll handle the legal compliances and regulatory complexities
Post-Registration Compliances for Producer Company in India
After completing Producer Company registration, certain legal and statutory compliances must be followed to keep the company active and penalty-free.
1. Commencement of Business
- A Producer Company must file a declaration for commencement of business after incorporation, confirming that members have subscribed to the share capital.
2. Appointment of Auditor
- A statutory auditor must be appointed within 30 days of incorporation to audit the company’s financial records.
3. Opening of Bank Account
- The company must open a current bank account in its registered name to carry out all financial transactions.
4. Maintenance of Books of Accounts
Proper books of accounts must be maintained, including:
- Cash book
- Ledger
- Purchase and sales records
- Member contribution details
5. Conduct of Annual General Meeting (AGM)
- A Producer Company must conduct its Annual General Meeting (AGM) every year to approve accounts, appoint auditors, and discuss company performance.
6. Annual ROC Filings
Mandatory filings with the Registrar of Companies (ROC) include:
- AOC-4 – Filing of financial statements
- MGT-7 Filing of annual return
7. Income Tax Return Filing
- The Producer Company must file its Income Tax Return (ITR) every year, even if there is no income or profit.
8. Audit of Accounts
- Annual statutory audit of financial statements is compulsory, regardless of turnover.
9. Compliance with Producer Company Provisions
The company must follow special provisions applicable to Producer Companies, such as:
- Member-based voting rights
- Limited return on shares
- Distribution of surplus as patronage bonus
10. Event-Based Compliances
Certain compliances are required when specific events occur, such as:
- Change in directors
- Increase in capital
- Change in registered office
- Amendment of MOA or AOA
Why Post-Registration Compliance is Important?
To avoid penalties and legal issues
To ensures smooth business operations
To builds trust among members and authorities
To keeps the Producer Company active and compliant
We offer Post - Incorporation compliance packages so you never miss a deadline or face penalties.
Want help beyond incorporation?
FAQs – Producer Company Registration in India
Primary producers such as farmers, agriculturists, dairy farmers, fishermen, artisans, or producer institutions can form a Producer Company.
A minimum of 10 individual producers or 2 producer institutions, or a mix of both, is required to start a Producer Company.
No. There is no minimum paid-up capital requirement prescribed under law.
No. A Producer Company cannot raise funds from external investors. Only its members can contribute capital.
A Producer Company can carry out activities such as production, procurement, processing, grading, packaging, storage, marketing, selling, export, and import of members’ produce.
No. Only primary producers or producer institutions are allowed to become members.
A Producer Company must have at least 5 directors and can have up to 15 directors.
Yes. A Producer Company must be registered under the Companies Act, 2013 and follows special provisions applicable to Producer Companies.
Income from agricultural activities is generally exempt from tax, while non-agricultural income is taxable as per Income Tax laws.
Yes. A Producer Company must file annual returns, financial statements, and conduct audits, similar to other registered companies.
Still have questions about Producer Company registration in India? Contact our experts for a free consultation.