Understanding the term Producer Company:

producer company

A Producer Company maybe refer to as a legally recognized entity of farmers with the objective of improving the standard of living.

Producer Company can be incorporated by 10 or more individuals or 2 or more institutions or it can be a combination of both having business objectives as one of the following:

  • Production
  • Procurement
  • Grading
  • Harvesting
  • Handling
  • Pooling
  • Selling,
  • Marketing
  • or Exporting the primary produce of the Members or import of goods or services for their benefit.


The main objective is to facilitate the formation of co-operative businesses in the form of companies.

The objects as given under section 581B can be detailed as follows:

Production, procurement, harvesting, pooling, grading, handling, selling, marketing, exporting of the primary output of the Member(s) or importing of goods or services for their benefits,

provided that the Producer Company may also carry on any of the activities specified under this clause either by itself or through some other institution.

  • Processing including preserving, drying, distilling, brewing, venting, packaging, and canning of the produce of its Member(s)
  • Sale, Manufacture, or supply of machinery, equipment and/ or consumables mainly to only its Members.
  • Rendering consultancy services, technical services, training, research and development, and other activities for the promotion of the interests of its members only.
  • Providing education to its members and others.
  • Insurance of producers or their primary produce.
  • Transmission, Generation, and distribution of power, revitalization of land and water resources, their use, conservation and communication relatable to primary produce.
  • other activities or ancillary to any of the aforesaid activities

Documentation to incorporate a Producer Company

1) First and the foremost thing is to Obtain a Digital Signature Certificate DSC in short by all the directors of the Producer Company.

2) After that Director Identification Number (DIN) shall be procured.

3) Once having DIN and DSC, you are required to file Form for reservation of name of the company to the Registrar of Companies (ROC). The name shall include the words “PRODUCER COMPANY” at its end.

4) Once the name is approved, you are required to prepare MOA & AOA of the company

Apart from above few more documents will be required like INC 8 (declaration by professional), Affidavit, utility bill and/or NOC if the premises are rented. The directors shall give their consent to act in the company in form DIR 12 and other details in DIR 8. Once these documents are prepared, one can upload these documents on the website of the ministry.

Thereafter ROC shall after being satisfying itself, shall issue a certificate of incorporation and the company can start its business.

Benefits of Producer Company

The main idea of forming a Producer Company is to create a farmer society in company form and conversion of a co-operative society into a systematic Company, for which, they do certain activities like procurement, pooling, production, harvesting, handling, marketing, grading, selling and/or importing/exporting of the primary producers of all its members.

The benefits of registering a farmer producer company are as follows:


Forming a producer company offers a lot of credibility to farmers as if we compared to other unregistered entities of farmers.

Separate legal entity and benefit of limited liability

The producer company provides the benefit of separate legal entities and limited to its members.

Owning a property

A Farmer company has all the right to buy/sell a property in its own name. It can accept deposits or can also provide loans to its members

Ease in management and registration

Registration as a producer company is a natural process and the company can make changes in the Board of Management through filing some simple forms with the concerned ROC.

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