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Updated on 26 Nov 2020  9.00 AM IST | 4 min read

Producer Company Registration in India

A producer company is a legally recognized body of farmers/agriculturists, concept made by government of India with the main purpose to improve their standard of living by ensuring them to give available support, income and profitability.

Under companies act, 1956, a producer company can be formed by –

  • 10 or more individuals
  • 2 or more institutions
  • Combination of 10 or more individuals and 2 or more institutions
What Is Included In Our Package?

Eligibility Consultation

Document Preparation

Application Drafting

Government Fees

Authorized Activities of Producer Company

The producer company deals with the production done by its members and is authorized to carry on any of the following activities –

  1. Processing of the production done by its members. Processing includes preserving, brewing, vinting, drying, distilling, canning and packaging.
  2. Manufacturing & sale of machinery, equipment or consumable to its producer members.
  3. Providing education on the mutual assistance principle to the members of the producer company as well as others.
  4. Rendering consulting services, technical services, training, research & development and other needed activities to promote the interest of producer members.
  5. Generation, transmission and distribution of power, revitalization of land and water resources, conservation and communication etc.
  6. Insurance of the first production & its producer.
  7. Promotion of techniques of mutuality and mutual assistance.
  8. Welfare of members of the producer company as decided by the board.
  9. Providing financial assistance to its producer members such as financing of marketing, procurement, processing or other activities such as extending of credit facilities.

Minimum Requirements for Producer Company Registration in India

The minimum requirements for the registration of a producer company are as follows –

  • Any 10 or more individuals can form a producer company.
  • Any 2 or more producer institutions can form a producer company
  • A combination of 10 or more individuals and 2 or more institutions can form a producer company
  • Minimum capital of Rs.500000 is needed to incorporate a producer company.
  • There should be minimum 5 directors and maximum 15 directors in a producer company.
  • Producer Company can never be converted into a public company but it can be converted into a multi-state co-operative society.

Documents Required For Producer Company Registration

  • For Promoters & Directors
    • Photograph
    • PAN card
    • Aadhar card/voter identity card
    • Electricity or water bill of business place
    • Rent agreement (If property is rented)
    • Property papers (If property is owned)
    • NOC from landlord
  • For Registered Office
    • Rented property - Rent agreement
    • Owned Property –
      • Electricity or water bill of business place
      • NOC from landlord

Process of Producer Company Registration

The procedure to incorporate a producer company is as follows –

  • The first step is to obtain digital signature certificate (DSC) of all the directors.
  • After obtaining DSC, the second step is to obtain the DIN (Director Identification number). You have to fill form DIR-3 along with a self-attested photo identity proof & address proof.
  • In the third step, you have to finalize the name of the producer company by filling form INC-1 to the registrar of companies (ROC). You need to give 6 names as per order of your preference in form INC-1 along with its significance. The name of the company must ends with the word “Producer Company”.
  • After getting the name approval from registrar of companies (ROC), you need to submit the following documents –
    • MOA (Memorandum of Association)
    • AOA (Articles of Association)
    • Filling of form INC-8 i.e. Declaration by a professional
    • To declare their legal competency to act as subscribers, all subscribers of the proposed company has to sign an affidavit.
    • NOC & utility bill from the house owner whose address is used as registered office address by the company. In case it is not owned, you have to attach lease agreement with the form.
    • Filling of form DIR-2 and details in DIR-8
  • In the last and the final step, all the documents will be attached to form INC-7, INC-22 & DIR-12 and uploaded on ROC website. After verifying all the documents, ROC will issue an incorporation certificate and company can easily start its business operations.

Advantages of Producer Company Registration in India

The main advantages of a producer company registration are –


Tax Benefit on Producer Company Registration

According to income tax act, 1961, agricultural income is exempted under section 10(1). The exemption provided under section 10(1) may vary sometimes depending upon the basis of agricultural activity. You can avail certain tax benefits or exemptions on the agricultural activity carried out by a producer company. For ex – Income from selling the grown green tea leaves comes under agricultural income and it is 100% tax free but if tea leaves will go further for processing for tea manufacturing. 60% of income is considered as agricultural income & 40% of such income will be taxable.

How Finacbooks help in Producer Company Registration?

Finacbooks is a leading Indian portal providing accounting, finance & taxation services to small businesses. We are having more than 10 years of experience in helping individuals providing Producer Company registration at a least possible price. We will guide you through the entire process of Producer Company registration. To avail the best deals on Producer Company registration, kindly call us at 8800221252 or you can also e-mail us at info@finacbooks.com

Producer Company Registration FAQ's

Under companies act, 1956, a producer company can be formed by –
  1. 10 or more individuals
  2. 2 or more institutions
  3. Combination of 10 or more individuals and 2 or more institutions
No, there is no need of your physical presence during incorporation of a producer company.
Photograph, PAN card, Aadhar card/voter identity card, Electricity or water bill of business place, Rent agreement (If property is rented), Property papers (If property is owned), NOC from landlord are the necessary documents to start a producer company.
If your files are in order, it will not take much of your time but it also depends upon the submission of correct documents, processing time as well as time taken by govt. officials in approving the application.
The minimum capital required to start a producer company is Rs.500000.
DIN is a unique number issued to the existing or the proposed directors of a company. This unique number has no expiry date and one director can only have one DIN.
DSC is an electronic version of physical signature. It can be used to verify documents in the registration process.
Every company name is divided into two parts in which first part defines its uniqueness from others and second part defines their business activity. Second part must be descriptive. The name of the company must ends with “Producer Company limited”.
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