Producer Company Registration: A Complete Guide to Setting Up Your Business

Setting up a Producer Company is a great way for farmers, artisans, and small-scale producers to come together and leverage collective benefits. Registering a Producer Company ensures legal recognition and access to government schemes, financial support, and better market opportunities. If you are considering forming a Producer Company, this guide will walk you through the registration process, benefits, and key requirements.

What is a Producer Company?

A Producer Company is a legally recognized business entity that allows primary producers—such as farmers, artisans, or fishermen—to work collectively. It is registered under the Companies Act, 2013, and enables members to improve production, procurement, and marketing while enjoying tax benefits and financial assistance.

Benefits of Registering a Producer Company

• Legal Recognition: A Producer Company is a separate legal entity, ensuring credibility and legal protection.

• Limited Liability: Members' liability is limited to the amount of capital contributed.

• Government Schemes & Financial Assistance: Eligible for subsidies, grants, and financial aid from NABARD and other government agencies.

• Better Market Access: Collective bargaining power leads to better pricing and reduced operational costs.

• Ease of Fundraising: Access to loans and investments from financial institutions.

Key Requirements for Producer Company Registration

To register a Producer Company in India, you must meet the following criteria:

• Minimum of 10 members (individual producers) or two producer institutions (cooperative societies or similar entities).

• Minimum of five directors to manage operations.

• Authorized Capital should be at least ₹5 lakh.

• Primary Activity must involve production, procurement, harvesting, grading, marketing, or related activities.

Step-by-Step Registration Process

Step 1: Obtain a Digital Signature Certificate (DSC)

A DSC is required for filing online forms with the Ministry of Corporate Affairs (MCA). Each director must obtain a DSC from a certified agency.

Step 2: Apply for Director Identification Number (DIN)

Directors must obtain a DIN from the MCA, which serves as a unique identification number for company directors.

Step 3: Name Approval via RUN (Reserve Unique Name) Service

Select a unique name for your Producer Company and get it approved through the MCA’s RUN service. The name should include "Producer Company Limited."

Step 4: Drafting Memorandum of Association (MoA) & Articles of Association (AoA)

These documents define the company’s objectives, rules, and internal operations. They must be prepared and submitted along with the application.

Step 5: Filing of Incorporation Forms

Submit incorporation forms like SPICe+ (Simplified Proforma for Incorporating Company Electronically) along with MoA, AoA, and other required documents.

Step 6: PAN & TAN Application

Once incorporated, apply for the company’s PAN and TAN for tax purposes.

Step 7: Open a Bank Account

A current bank account must be opened in the company’s name for financial transactions.

Documents Required for Registration

• Identity & address proof of directors and members.

• PAN cards of all members.

• Registered office address proof (electricity bill, rental agreement, or ownership proof).

• MoA & AoA duly signed by members.

Firm Registration Along with Producer Company

If you plan to establish a firm alongside your Producer Company, it can be registered under the Partnership Act or LLP Act. This ensures better financial management and flexibility in operations.

Why Register a Producer Company with a Firm?

• Enhanced credibility for business operations.

• Ability to manage separate business activities efficiently.

• Access to diverse funding sources for different business activities.

Conclusion

Registering a Producer Company can be a game-changer for farmers and small producers, offering financial stability, legal recognition, and market opportunities. By following the right registration process and fulfilling the legal requirements, you can set up a strong foundation for your business and unlock growth potential.

If you're looking to register a Producer Company or need assistance with firm registration, consult a professional to ensure smooth and hassle-free compliance!