Producer Company Registration – A How – To

producer company registration

producer company registration

Simplifying Producer Company Registration in India: All You Need to Know


In recent years, the concept of producer companies has gained significant recognition in India as an effective business model for agricultural activities and rural development. With a strong emphasis on empowering the rural masses, producer companies have emerged as essential entities that promote collective management, marketing, and procurement of agricultural produce. If you’re considering starting a producer company in India, this article will guide you through the process of registration, highlighting its importance and benefits for the Indian audience.

Understanding Producer Companies:

A producer company, as defined under the Companies Act, 2013, is a hybrid form of cooperative society and private limited company. It represents a group of individuals engaged in production-related activities such as farming, fishery, sericulture, horticulture, poultry, dairy farming, and more. The primary objective of a producer company is to enhance the socio-economic status of its members by providing business opportunities, infrastructure, and technical support.

Registration Process:

To register a producer company in India, one must follow a specific set of guidelines and procedures. Here are the key steps involved in the registration process:

1. Formation of a Board of Directors:
A producer company must have a minimum of five and a maximum of fifteen directors. These directors are responsible for managing and supervising the affairs of the company. To ensure effective governance, the board must include individuals from the primary producer group and elected member directors representing the shareholders.

2. Name Approval:
Choosing an appropriate name is crucial for the identity of the producer company. The proposed name must comply with the guidelines provided by the Companies Act, 2013. A unique and meaningful name reflecting the nature of business is recommended to avoid conflicts during name approval.

3. Memorandum and Articles of Association:
Drafting the Memorandum and Articles of Association is a crucial step in the registration process. The MOA and AOA define the objectives, rights, and duties of the producer company and its members. They also specify the rules and regulations governing the functioning of the company.

4. Documentation:
To proceed with the registration, certain documents need to be submitted to the Registrar of Companies (ROC). These include the Memorandum and Articles of Association, declaration by the directors, consent letters from the directors, and address proofs of all directors. Additionally, an affidavit mentioning compliance with the eligibility criteria and objectives of a producer company is also necessary.

5. Application for Registration:
Once all the documents are in order, the director or authorized company secretary must file an application for registration with the ROC. The application should be accompanied by the prescribed fee and relevant forms, including Form INC-7, Form INC-22, and Form DIR-12.

Benefits of Producer Company Registration:

1. Limited Liability: Members of a producer company enjoy the benefit of limited liability, ensuring that their personal assets are protected in case of any liabilities or losses incurred by the company.

2. Easy Access to Capital: Registered producer companies can avail of loans, credit facilities, and financial assistance from banks, financial institutions, and government schemes to support their agricultural and rural development initiatives.

3. Improved Market Opportunities: Producer companies provide a platform for collective marketing and fair pricing of agricultural produce. By eliminating intermediaries, producers can directly negotiate with buyers, ensuring better profit margins and market access.

4. Democratically Managed: Producer companies follow democratic principles, providing equal voting rights to all members, regardless of their shareholdings. This ensures a participatory approach and effective decision-making.

5. Tax Exemptions: Producer companies are eligible for various tax exemptions and benefits, such as exemption from dividend distribution tax and concessional tax rates on business income.


Producer companies hold immense potential in transforming the agricultural landscape of India. By facilitating collective action and empowering farmers and rural communities, they play a pivotal role in ensuring sustainable growth and development. Through simplified registration procedures, the government aims to encourage more individuals to form producer companies and provide a conducive ecosystem for their success. If you’re looking to make a positive impact and promote rural prosperity, registering a producer company is an ideal way to contribute to India’s agricultural growth story.,

For more information and knowledge, read our article:

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producer company registration

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Producer Company Registration – A How – To

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