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Welcome to Trisuka, your trusted advisor in the formation of Producer Companies. We will guide you through the process of forming a Producer Company. Discover what a Producer Company entails, the necessary documents required, the step-by-step process, eligibility criteria, and the pros and cons of choosing this unique type of company.


Producer Company Registration

A Producer Company is a specialized form of a company established with the objective of organizing, promoting, and assisting the activities of its members who are primarily engaged in agriculture, horticulture, animal husbandry, fisheries, or related activities. The main purpose of a Producer Company is to uplift the socio-economic status of its members, improve their bargaining power, and facilitate access to markets, technology, and other resources.

To establish a Producer Company, certain documents need to be prepared and submitted. These include:

  • Memorandum of Association (MoA): The MoA should clearly outline the objectives, rules, and regulations of the Producer Company. It should specify the activities and scope of operations.
  • Articles of Association (AoA): The AoA should detail the internal rules and regulations governing the operations and management of the Producer Company.
  • Director Identification Number (DIN): All proposed directors of the Producer Company must obtain a unique DIN from the Ministry of Corporate Affairs (MCA).
  • Digital Signature Certificate (DSC): Digital signatures are required for electronically signing various documents throughout the registration process.
  • Address Proof: The Producer Company must provide address proof documents such as utility bills or rental agreements for the registered office address.

The process of forming a Producer Company involves the following steps:

  • Minimum Members: Ensure the presence of at least ten individuals or two institutions (or a combination of both) to form a Producer Company. These members must be engaged in primary production activities.
  • Name Approval: Select a unique name for the Producer Company and apply for its approval with the Registrar of Companies (ROC). The name should include the term “Producer Company” as a part of the company name.
  • Incorporation Documents: Prepare the necessary incorporation documents, including the MoA, AoA, and other prescribed forms, as per the requirements of the Companies Act, 2013.
  • Filing with ROC: Submit the incorporation documents to the ROC along with the requisite fees.
  • Capital Requirement: Ensure that the Producer Company has an authorized share capital and subscribed capital as per the prescribed requirements.
  • Compliance: Comply with post-incorporation requirements, such as holding regular general meetings, maintaining proper accounting records, and adhering to tax and regulatory obligations.

To register a Producer Company, the following eligibility criteria must be met:

  • The Producer Company must have a minimum of ten individuals or two institutions (or a combination of both) as members.
  • All members must be engaged in primary production activities related to agriculture, horticulture, animal husbandry, fisheries, or similar activities.
  • Enhanced Bargaining Power: Producer Companies empower farmers and rural producers by pooling their resources and collective strength, providing them with better bargaining power in the market.
  • Market Access and Value Addition: Producer Companies facilitate access to markets, technology, and finance, helping farmers and producers improve their productivity, product quality, and value addition processes.
  • Shared Profits and Decision-Making: The profits generated by a Producer Company are shared among its members, promoting equitable distribution. Members actively participate in decision-making processes, ensuring a democratic and inclusive approach.
  • Limited Liability: Members of a Producer Company have limited liability, protecting their personal assets and minimizing risk. Their liability is limited to the extent of their share capital in the company.
  • Institutional Support: Producer Companies receive institutional support from various government schemes, financial institutions, and agricultural bodies, which can further enhance their capabilities and resources.
  • Complex Governance: Producer Companies require efficient governance structures to ensure effective decision-making, consensus-building, and the active participation of all members. Maintaining member engagement and managing diverse interests can be challenging.
  • Limited Access to Capital: While Producer Companies have access to financial resources through members’ contributions and loans, accessing external capital can be more challenging compared to other types of companies.
  • Compliance Requirements: Producer Companies need to comply with various legal and regulatory requirements, including financial reporting, tax obligations, and compliance with sector-specific regulations, which can be time-consuming and complex.
  • Dependency on Members: The success and sustainability of a Producer Company are closely linked to the active involvement, dedication, and commitment of its members. Member participation is crucial for the efficient functioning and growth of the company.
  • Market Risks: Producer Companies may face market risks such as price fluctuations, demand volatility, and changing consumer preferences, which can impact the profitability and stability of the company.


  1. Can individuals from different sectors join a Producer Company?
    Yes, individuals engaged in various primary production activities, such as agriculture, horticulture, animal husbandry, and fisheries, can join a Producer Company, provided they meet the eligibility criteria and share the common objective of promoting their socio-economic interests.

  2. Can a Producer Company receive external funding?
    Yes, Producer Companies can receive funding through loans from financial institutions, government schemes, and development programs. They can also access grants and subsidies meant for the development of agricultural and rural sectors.

  3. Can a Producer Company engage in trading activities?
    Yes, Producer Companies can engage in trading activities related to their primary production activities, such as buying and selling agricultural produce, inputs, machinery, and related products. However, the trading activities should align with the objectives of the company.

  4. Are Producer Companies eligible for any tax benefits?
    Producer Companies may be eligible for certain tax benefits and exemptions provided by the government, subject to compliance with applicable laws and regulations. These benefits can vary based on the specific policies and schemes implemented by the government from time to time.

  5. Can a Producer Company convert into a different type of company?
    Yes, under certain circumstances and with the approval of the appropriate authorities, a Producer Company can convert into a different type of company, such as a private limited company or a public limited company. The conversion process requires compliance with legal requirements and obtaining necessary approvals.

**Please note that while these answers provide a general understanding, it is always advisable to consult with professionals or legal experts for specific guidance to your unique circumstances.