Producer Company Registration

What is the Producer Company?

A producer company is basically a company registered to deal with the primary production of its active member related to farming. The main objective includes production to its selling and exporting also. For the purpose of incorporation of producer company, Part IXA of Companies Act, 1956 is applicable until any special Act is enacted for such companies.

A producer company is registered with ten or more member being producers; or any two or more producer institutions; or its combination. Alike any other company, the liability of its members is limited to the extent of unpaid share capital by its members. The producer company is deemed to be a private limited company under this Act, however, the threshold of the number of members does not apply to same.

Benefits of registering a farmer-producer organization

Special User Rights
The active members of the producer company may enjoy special user rights, if provided in the AoA of the company. The company may issue appropriate instruments to active members in respect of such rights. The special use rights refer to any right relating to the supply of additional produce by the active Member or any other right relating to his produce.
Benefits to members
Every member can initially receive only the value of the produce as determined by the Board. The withheld price may be disbursed later in cash or by allotment of equity shares. The members are eligible only for limited return but can also be allotted bonus shares. The surplus can also be disbursed as patronage bonus.
Separate legal identity
Alike any other company, the producer company also has a separate legal identity. The assets, liabilities, rights, debts and privileges shall vest in the company. The company can deal in its own name and hold the properties, too. The change in members or the directors neither affects its existence nor the assets & liabilities or rights & obligations.
Limited Liability of owners
The members and the producer institutions have limited liability towards the debts and obligations of the company. Their personal assets remain unaffected in any case of loss or winding up. With assurance to limited liability, the producers can invest with lower risk into such businesses.

Documents required for producer company registration

Latest Passport size photograph of Shareholders and Directors.
PAN Card
PAN Card of shareholders and Directors.
Identity Proof
Voter ID/ Passport/ Driving License of Shareholders and Directors.
Address Proof
Telephone Bill /Electricity Bill/Latest Bank Account Statement of Shareholders and Directors.
Business Address Proof
Electricity Bill/ Telephone Bill of the registered office address in India
NOC from owner
No Objection Certificate to be obtained from the owner(s) of registered office
Rent Agreement
Rent Agreement of the registered office should be provided if any

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Formulation of Company Name

Unique Name

Mainly it builds the company brand and preferably be a coined word

Constitution Type

Name of the company must end with “Producer Company Limited” as a suffix

Register a Producer Company in 3 Easy Steps

  • All it takes is 15 – 18 working days*

*Subject to Government processing time

Process to register a producer company online

  • Application for Digital Signature Certificate

Explore incorporation of producer company
Frequently Asked Questions

What are the minimum requirements to register a farmer producer organization as a company?
Following are the minimum requirements to obtain registration as producer company:
1) The main object of the company must be too as provided in Section 581B of Companies Act, 1956
2) Minimum 10 individuals (who are a producer) or at least 2 producer institutes must subscribe the shares of the company
3) Minimum 5 directors in the company, one of which must be Indian citizen and resident
4) The registered office of the company must be situated in India
What is the minimum capital required?
The amount of capital prescribed for this There is no minimum amount of capital prescribed for the charitable company. The promoters may introduce the amount sufficient to start and run a business.
How to reserve the name of company?
The name of the company should be formulated as per the naming guidelines. The application for reservation of name is made in web-form called “RUN” with a maximum of 2 unique names. The registrar may ask to re-submit the application with a different name if the names do not fulfill the requirements.
Whether physical presence of the promoters is required while registration?
No. The registration process is completely online, the physical presence of the promoters is not required. All the documents and details can be transmitted through the mail or uploaded on our portal.
Can NRIs/Foreign Nationals be a Director in a farmers producer organization?
Yes, an NRI or Foreign National can be a Director after obtaining Director Identification Number. However, at least one Director on the Board of Directors must be an Indian citizen and a resident.
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