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Producer Company

What does a Producer company mean?

"Producer" means any person engaged in any activity connected with or relatable to any primary produce; (l) "Producer Company" means a body corporate having objects or activities specified in Section 581B and registered as Producer Company under the Companies Act, 2013.
A Producer Company is basically a body corporate registered as Producer Company under Companies Act, 2013 and shall carry on or relate to any of following activities classified broadly:-

  1. Production, harvesting, processing, procurement, grading, pooling, handling, marketing, selling, export of *primary produce of the Members or import of goods or services for their benefit.
  2. Rendering technical services, consultancy services, training, education, research and development and all other activities for the promotion of the interests of its Members;
  3. Generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce;
  4. Promoting mutual assistance, welfare measures, financial services, insurance of producers or their primary produce.
Salient features of Producer Companies
  • Only persons engaged in an activity connected with, or related to, primary produce can participate in the ownership.
  • The members have necessarily to be primary producers.
  • Termed as “Companies with Limited Liability” and the liability of the members will be limited to the amount, if any, unpaid on the shares.
  • Name of the company shall end with the words “Producer Company Limited“.
  • On registration, the producer company shall become as if it is a Private Limited Company for the purpose of application of law and administration of the company. However, it shall comply with the specific provisions of part IXA.
  • The limit of maximum number of members is not applicable to these Companies.
Advantages of Producer Companies
  • Limited liability;
  • Separate legal entity;
  • Perpetual succession;
  • Economies of Scale;
  • Better credibility;
  • Better management control.
Limitations/ Shortcomings of Producer Companies
  • Registration process is time consuming as compared to other entities;
  • Winding up is permitted only on following the tedious procedure as prescribed under the Companies Act, 2013;
  • Expensive to maintain statutory records as compared to other forms of business;
  • Mandatory appointment of auditors and numerous statutory compliances.
FAQs on producer companies
  1. What are the documents required for the incorporation of a Producer Company?
      Following are the documents required for the incorporation of a Producer Company:
    • Self-attested copy of PAN Card of the proposed directors;
    • Self-attested copy of Driver’s License/ Voter ID/ Aadhaar Card/Passport of the proposed directors;
    • Self-attested copy of Bank Statement/ Telephone Bill/Mobile Bill/ Electricity Bill of the proposed directors;
    • Passport-size Photograph of the proposed directors;
    • Specimen Signature Certificate of the proposed directors.
      In case of foreign nationals and NRIs, all the documents must be notarised (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).
      For the Registered Office:
    • Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill;
    • Scanned copy of Notarised Rental Agreement in English;
    • Scanned copy of No-objection Certificate from property owner;
    • Scanned copy of Sale Deed/Property Deed in English (in case of owned property).
    Note: Your registered office need not be a commercial space; it can be your residence, too.
  2. What are the types of Producer Companies?
    Following are the types of Producer Companies:
    • Production Businesses: The main type of producer companies are those involved in production, procurement or manufacture of any primary produce for its members (for further sale) and to others.
    • Marketing Businesses: Even a business involved in the marketing or promotion of primary produce or provision of educational services to members and others can constitute itself as a producer company.
    • Technical Service Businesses: Any business offering technical assistance to producers, providing training and educational services or conducting research and development can register as a producer company.
    • Financing Businesses: Any business financing producer activities, be it in the production, marketing or development domain, can register itself as a producer company.
    • Infrastructure Businesses: Businesses involved in providing infrastructure to producers, whether in the form of electricity, water resources, irrigation techniques, land utilization, or consultation with regard to the same, may constitute themselves as a producer company.
  3. Is audit mandatory for a Producer Company?
    Yes, audit is mandatory for a Producer Company.
Our Services
  • Our organization will guide you to obtain DSC and DIN which are the first and the foremost requirements for incorporating a Company.
  • Our experts will further guide you to choose a distinctive name (including trademark, if any) for the proposed Company.
  • Our experts will do the requisite documentation such as the preparation of the MOA, AOA and the Affidavits, as required under the incorporation procedure as laid down under the Companies Act, 2013 and the Rules made thereunder.
  • On incorporation of the Company, our team members will guide and assist you to ensure statutory compliances and also, to obtain PAN/TAN in the name of the Company.
  • Our team will file all the requisite forms/documents for incorporation with the Registrar of Companies and will follow up the status of the certificate of incorporation.
  • Our experts will offer their complete support for future statutory/ business related compliances.


We look forward for a rewarding and a fruitful professional association in the above field of Company law, Taxation Laws and other related laws provided given a chance of executing professional assignments.

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