Producer Company Registration

A Producer Company is a special type of company registered under the Companies Act, 2013, designed exclusively for farmers, agriculturists, and producers. Its main purpose is to improve the income, standard of living, and market opportunities for farmers by collectively working as a business unit.

At NEXGENCA, we provide end-to-end services for registering a Producer Company so that farmers and producers can enjoy legal recognition, government support, tax benefits, and better access to finance and markets.

Why Choose a Producer Company?

Empowers Farmers & Producers – collective growth.
Limited Liability – protects members from personal risks.
Separate Legal Entity – company can own property and enter contracts.
Access to Loans & Government Schemes.
Tax Benefits – agricultural income often exempt.
Better Market Reach – farmers can directly sell to corporates.
Professional Management – run like a corporate but for farmers.

Key Features of a Producer Company

Minimum 10 or more individual farmers (producers) required.
Minimum 5 directors required.
Registered with MCA (Ministry of Corporate Affairs).
Activities include production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce, and related activities.
Members must be primary producers (farmers, milk producers, fishermen, handloom workers, etc.).
Works like a Private Limited Company but with a farmer-centric purpose.

Step-by-Step Process of Producer Company Registration

Step 1: Obtain DSC & DIN

Digital Signature Certificate (DSC) & Director Identification Number (DIN) for directors.

Step 2: Name Approval

Apply to MCA for company name with words like “Producer Limited”.

Step 3: Draft MOA & AOA

Draft Memorandum of Association (MOA) & Articles of Association (AOA) stating producer-related objectives.

Step 4: Incorporation Filing (SPICe+ Form)

File incorporation forms with MCA along with required documents.

Step 5: Certificate of Incorporation

MCA issues Certificate of Incorporation with Producer Company status.

Step 6: PAN, TAN & Bank Account

Apply for PAN, TAN, and open a company current account.
Timeline: 20–30 working days

Documents Required for Producer Company

For Directors/Shareholders (Farmers/Producers)

PAN card (mandatory)
Aadhaar card / Passport / Voter ID / DL
Passport-size photo
Proof of farmer/producer activity (like land records, Kisan card, utility bills, cooperative membership, etc.)
Email ID & Mobile number

For Registered Office

Electricity/Water/Utility bill (not older than 2 months)
Rent Agreement + NOC from owner (if rented)
Ownership proof (if owned)

Other Documents

Draft objectives of Producer Company
Declarations from directors and members

Timeline for Registration

DSC & DIN: 3–5 days
Name Approval: 2–4 days
Drafting MOA/AOA & Filing: 7–10 days
MCA Approval & Incorporation: 7–10 days
PAN, TAN & Bank Account: 5–7 days
Total: 20–30 working days

Post Registration Benefits

Eligible for government subsidies and grants.
Can raise capital through equity from members.
Can distribute patronage bonus to members (profits shared based on contribution, not shares).
Can enter into contracts with buyers, exporters, corporates.
Enhanced credibility in markets and banking system.

A Producer Company is a legally registered company of farmers/producers formed to collectively carry out agricultural and allied activities.

Any 10 or more individual producers or 2 producer institutions can form a Producer Company.

At least 5 directors are required.

No limit on the maximum number of members.

Production, procurement, pooling, marketing, selling, exporting agricultural produce, and allied activities.

There is no fixed minimum capital, but usually ₹5–10 lakh is recommended.

Yes, but only as per RBI guidelines and MCA provisions.

Yes, agricultural income is tax-free under Income Tax Act, subject to certain conditions.

Profits distributed to members based on their participation in production or contribution, not on shareholding.

No, it cannot be converted into another company type; it remains a Producer Company.

No, only Indian producers/farmers can be members.

Yes, it continues to exist irrespective of changes in members/directors.

Producer Company is registered under Companies Act (corporate governance, audit, MCA compliance) while Cooperative is under State Cooperative Act (more govt. interference).

Yes, annual audit & ROC filings are mandatory.

Yes, they can avail loans from banks, NABARD, and government schemes.

Office Address

Phone Number

Email Address