Minimum Eligibility Criteria
- 5 or more Directors
- 10 or more Producer Shareholders
- Minimum Capital Requirement: ₹5,00,000
- Maximum 15 Directors allowed
- At least one Director must be a Resident of India
Benefits of Registering a Producer Company
- Limited liability protection for its directors
- Ability to offer loans and financial assistance to members
- Ideal for agriculture-based producers and farmers
- Designed to boost the income and welfare of rural producers
- Option to include multiple producer members under one company
What is a Producer Company?
A Producer Company is a unique company structure created specifically for producers involved in farming, livestock, forestry, fisheries, and related activities. It acts as a private limited company and is governed under Part IXA of the Companies Act, 1956 (since the Companies Act, 2013 has not yet replaced this provision).
The purpose of forming such a company is to enhance the livelihood of farmers and ensure better returns by collectively managing production, marketing, and support services.
Legal Background and Governance:
Even though the Companies Act, 2013 repealed the earlier Act, Section 465 of the Companies Act, 2013 ensures that Producer Companies continue to be regulated under Chapter IXA of the Companies Act, 1956 until a new legislation is introduced specifically for them.
This means Producer Companies are still recognized and fully functional under the law.
Permissible Activities of a Producer Company
A registered producer company may engage in:
- Production, processing, packaging, and marketing of its members’ produce
- Procurement and selling of inputs like seeds, machinery, and fertilizers
- Research, training, and consultancy services that improve member efficiency
- Power generation, water conservation, irrigation and allied services
- Welfare measures and insurance for members and their produce
- Import/export of goods or services that benefit members
Documents Needed for Registration:
For Directors and Members
- Self-attested PAN Card
- Passport-size photos (2 per person)
- Identity proof: Aadhar / Voter ID / Passport / Driving License
- Address proof: Bank Statement / Utility Bill (not older than 60 days)
For Registered Office
- Utility bill (electricity/telephone/mobile) +
- If rented: Rent agreement + NOC from landlord
- If owned: Title deed + NOC from the owner
Additional Documents
- Land ownership proof like Jamabandi / Khasra / Khatauni
- Producer Certificate for each subscriber (issued by Patwari, SDM, Tehsildar, or Agriculture Officer)
Key Information Required
- Proposed authorized and paid-up share capital
- Place of birth and duration of stay of all directors/members
- Members’ and directors’ occupation & qualification
- Business objective of the company
- Active email and contact numbers for all members and directors
Step-by-Step Process for Producer Company Registration:
Step 1: Reserve the Company Name
Initiate the process through the SPICe+ web form (Part A) available on the MCA Portal. Ensure your desired name is:
- Unique, and
- Not registered as a trademark
You may reserve the name separately or proceed with incorporation directly using Part A + Part B of SPICe+.
Step 2: Fill SPICe+ Part B and Linked Forms
Complete Part B of SPICe+, which includes:
- Company details
- Registered address
- Director/shareholder info
Also fill e-MoA (INC-33), e-AoA (INC-34), and AGILE-PRO for EPFO, ESIC, GST, and bank account applications.
Step 3: Convert Forms to PDF & Attach DSC
Once forms are filled, convert them to PDF, digitally sign them using the DSC (Digital Signature Certificate) of the directors, and submit.
Step 4: Upload to MCA Portal
Upload the signed SPICe+ forms and attachments through the MCA portal. Once verified and approved, a Certificate of Incorporation is issued by the Registrar of Companies.
Step 5: INC-9 Declarations
INC-9 declarations for directors and shareholders are auto-generated and must be submitted electronically unless:
- More than 20 subscribers/directors, or
- Any subscriber who lacks a DIN or PAN
Important MCA Amendments (Effective from Feb 2020)
- No need to mention SRN for name approvals in SPICe+
- Mandatory registration for:
- EPFO & ESIC
- Professional Tax (for Maharashtra)
- Opening a bank account via the AGILE-PRO form
- e-MoA & e-AoA required if the number of subscribers ≤ 7
- For foreign subscribers without a business visa, an apostilled MoA/AoA must be submitted
- Physical MoA/AoA required in some cross-border cases (refer to special scenarios table)
Key Scenarios for Filing MoA & AoA
| S. No. | Case Description | Required Forms |
|---|---|---|
| 1 | Non-Indian subscriber outside India | SPICe+ + Apostilled MoA/AoA |
| 2 | Indian non-individual subscriber | SPICe+ + e-MoA / e-AoA |
| 3 | Indian subscriber (not director) | SPICe+ + e-MoA / e-AoA |
| 4 | Indian subscriber (also director) | SPICe+ + e-MoA / e-AoA |
| 5 | Foreign director with DIN & visa | SPICe+ + e-MoA / e-AoA + Visa |
| 6 | Foreign director with no visa | SPICe+ + Apostilled MoA/AoA |
| 7 | Foreign subscriber with no DIN | SPICe+ + Apostilled MoA/AoA |
Note: If there are more than 7 subscribers, attach physical MoA & AoA instead of e-forms.
Why Choose a Producer Company?
A Producer Company provides:
- A collaborative platform for farmers and producers
- Direct access to resources, training, and better pricing
- A legal identity that improves credibility and allows borrowing
- A structure that combines cooperative principles with the benefits of a company
Start Your Producer Company with Expert Help
Ready to organize your farming or agricultural business into a powerful legal entity? Let our team help you form your Producer Company hassle-free and stay compliant from day one.