Empowering farmers and producers through collective strength and shared benefits
Small producers gain bargaining power in markets
Pool resources to negotiate better prices and reduce costs through economies of scale
Registered under Companies Act with corporate status
Operate as a legal entity with limited liability protection for members
Special tax concessions for producer companies
Eligible for various tax exemptions and lower tax rates
Easier access to institutional credit
Banks and financial institutions prefer lending to registered producer companies
An individual can set up as a sole trader/proprietor, as a Partnership firm, or Limited Liability Partnership etc. or can set up various types of companies such as:
| One Person Company | Private Limited Company | Limited Liability Partnership | Proprietorship | Partnership Firm |
|---|---|---|---|---|
| 1 Shareholders | Minimum 2 Shareholders | 2 Designated Partners | PAN | Minimum 2 Partners |
| 1 Directors | Minimum 2 Directors | DIN of partners | Adhaar | PAN of Partnership firm |
| 1 Nominee | DIN of directors | DSC of partners | Bank Details | |
| DIN of Director | DSC of directors | Capital Contribution 10000/- | Business Details | Capital Contribution 10000/- |
| DSC of director | Minimum Authorised Share Capital 1 Lakh | Investment minimum 1 Lakh | ||
| Minimum Authorised Share Capital 1 Lakh |
A Producer Company is a hybrid between cooperative societies and private limited companies, specifically designed for farmers, agriculturists, and primary producers to improve their standards and income through collective action.
A legally recognized body of farmers/producers incorporated under Part IXA of Companies Act, 1956 (now under Companies Act, 2013) to undertake production, harvesting, procurement, grading, marketing, etc. of members' produce.
Introduced through Companies (Amendment) Act, 2002 to provide cooperatives a corporate structure under Section 378A to 378ZT of Companies Act, 2013.
Any 10+ individuals engaged in primary produce activities (farmers, artisans, craftsmen, etc.) can form a Producer Company. Minimum ₹5 lakh capital required.
Companies engaged in production, harvesting, procurement of primary produce from members
Companies focused on marketing of members' produce including processing, storage, etc.
Companies providing technical services, training, R&D support to members
Companies combining production, marketing and service activities
Collective strength in input purchase and output marketing
Easier access to institutional finance and bank loans
Special tax benefits and exemptions available
Members' liability limited to share capital
One member one vote regardless of shareholding
Profits distributed based on patronage, not capital
Enhancing production efficiency through collective inputs and best practices
Ensuring better prices through collective bargaining and direct market access
Adding value to produce through processing and proper storage facilities
Providing education, training and technical know-how to members
Arranging credit facilities and financial services for members
Providing insurance services to protect members' interests
Gather at least 10 eligible producers as founding members
Apply for name reservation through RUN (Reserve Unique Name) service
Prepare Memorandum and Articles of Association as per Producer Company format
Get Digital Signature Certificates and Director Identification Numbers
Submit incorporation documents through SPICe+ form on MCA portal
Receive COI from ROC within 10-15 days of application
Note: The entire process typically takes 15-20 days with proper documentation. Minimum paid-up capital requirement is ₹5 lakh.
"Our farmers' collective became much stronger after registering as a Producer Company. We now get 20-30% better prices for our crops and have access to better inputs at lower costs."
"The registration process was smooth and the benefits have been tremendous. We've been able to access bank loans and government schemes that weren't available to us earlier."
Get your Producer Company registered in just 15-20 days
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