Company Registration
Producer Company
Limited Liability
Co-operative in Company Form
Transparency
Recognition
Multistate
Eligibility
- • 5 directors
- • ₹5 lakh minimum capital
- • At least 10 producers and/or 2 institutions
Popular
Basic Package
₹16,999 one-time professional fees*
- 3 DIN + 10 DSC
- MOA + AOA
- 1 RUN Name Approval
- Professional Tax Registration + PAN + TAN
- Bank account opening documentation support
- Commencement of Business Certificate
- Certificate of Incorporation
A body of farmers and agriculturists functioning together for the betterment of the farming community's living conditions is a Producer Company. It ensures the farmer community is not low-balled on income and profitability, by pooling warehouses and cold storage, negotiating better prices for produce, providing loans to members, and procuring seeds, fertilisers, and equipment at lower rates. Member liability is limited.
A Producer Company needs a minimum of either 10 individual producers or 2 producer institutions to form — or a combination of both — with no upper limit on membership. Members' business objective must relate to procurement, production, harvesting, grading, pooling, handling, marketing, selling, or export/import of the members' primary produce.
Both new and existing co-operative businesses can benefit from this structure. The Companies Act prescribes a minimum of 5 and maximum of 15 directors, with a minimum capital requirement of ₹5 lakh. The board can provide financial assistance to members through credit facilities, loans, and advances.
Conversion
A Producer Company can only be converted into a multi-state co-operative society — no other conversion is available.
Taxation of Producer Company
A 100% tax deduction is allowed for Farmer Producer Companies with turnover up to ₹100 crore and earning profit from that turnover. The tax benefit and exemption depend on the specific activity the company undertakes.
Registration Process
- 1
Apply for Name
Submit a unique proposed name with the fee; the Central Registration Centre (CRC) approves it after verification.
- 2
Obtain DSC
All proposed directors obtain a Digital Signature Certificate; the DIN is created automatically once the company is incorporated.
- 3
File MoA and AoA
Once the name is approved and DSC obtained, the physical MoA and AoA are prepared and filed with other relevant documents.
- 4
Certificate of Incorporation
After verification, the Registrar of Companies issues the Certificate of Incorporation within 30 days, confirming the company's existence and perpetual succession.
Documents Required
- PAN Card (mandatory for Indian residents)
- ID proof — Passport, Driving License, or Voter ID
- Address proof — mobile/telephone bill, recent utility bill, or bank statement
- No Objection Letter and owner's utility bill, for consented premises
- Registered title document or company-name utility bill, for owned premises
- Lease/rent agreement, rent receipt, and owner's utility bill, for rented premises
- Passport-size photographs of directors and shareholders
Frequently Asked Questions
How many individuals does it take to form a Producer Company?
A minimum of 10 individuals, or 2 producer institutions, or a combination of both.
Can institutions be directors of a Producer Company?
No, directors must always be individuals.
How many directors should a Producer Company have?
A minimum of 5 and a maximum of 15.
Is there a minimum capital requirement?
Yes, ₹5,00,000.
Are Producer Companies always exempt from taxation?
No — tax benefit and exemption depend on the specific agricultural activities the company carries out.
What is the tenure for Producer Company directors?
Not less than one year and not more than five years, though they are eligible for re-appointment.
Register Producer Company
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