PRODUCER COMPANY REGISTRATION

A Producer Company is a special type of company formed under the Companies Act, 2013 and governed by Producer Company provisions (Part IXA of Companies Act, 1956 as retained).
It is mainly meant for farmers, agriculturists, and producers to form a collective business entity based on mutual assistance.

1. Meaning of a Producer Company

A Producer Company is a corporate body having the objective of:

• Production
• Harvesting
• Procurement
• Grading
• Pooling
• Handling
• Marketing
• Selling
• Exporting of primary produce
• Providing technical, consultancy, or training services to members

"Primary Producer" includes farmers, milk producers, handloom, handicraft, and forest produce workers.

2. Key Features

• Registered as a Private Limited Companybut with special privileges
• Minimum 10 individual producers, or
• Minimum 2 producer institutions, or
• Combination of both
• Must use “Producer Company Limited” in its name.
• Non-profit motive for members' mutual assistance (but profits can be distributed)

3. Minimum Requirements

• Minimum 10 individuals (all must be producers)
• OR minimum 2 Producer Institutions
• Minimum 5 Directors
• No minimum paid-up capital requirement
• Registered Office Address
• Company Cannot be converted into a Public Limited Company

4. Objectives of a Producer Company

As per law, Producer Companies can engage in:

Primary Activities

• Production, harvesting, processing
• Procurement, pooling, grading, marketing
• Selling of primary produce
• Selling inputs to members (seeds, fertilizers, machinery)

Support Activities

• Technical services
• Training & education
• Research & development
• Generation and distribution of power
• Insurance of producers or their produce

Financial Activities

• Providing credit to members
• Financing procurement or processing

5. Benefits of a Producer Company

• Legal status of a company
• Better access to credit and loans
• Collective bargaining and higher profits
• Limited liability protects members
• Tax benefits in certain agricultural activities
• Professional management system
• Fair distribution of profits among members

6. Profit Sharing

Producer Companies distribute income in three forms:

1. Dividend on shares (limited return)
2. Patronage Bonus (based on member participation)
3. Bonus shares or additional shares

7. Documents Required

For Directors / Members

• PAN Card
• Aadhaar / Voter ID / Passport
• Address Proof
• Passport-size Photo

For Office

• Electricity Bill / Rent Agreement
• NOC from Property Owner

Legal Documents

• MOA (Memorandum of Association)
• AOA (Articles of Association)
• DIR-2 (Director Consent)

8. Registration Process (Step-by-Step)

Step 1:Digital Signature Certificate (DSC)
Required for all proposed directors.

Step 2:Director Identification Number (DIN)
Apply through MCA portal.

Step 3:Name Approval via RUN service

• Apply via RUN service
• Must contain “Producer Company Limited”

Step 4:Filing SPICe+ (INC-32) with INC-33, INC-34 & AGILE-PRO
Along with:

• e-MOA (INC-33)
• e-AOA (INC-34)
• AGILE-PRO (for GST, EPFO, ESIC if required)

Step 5:Certificate of Incorporation issued by MCA
Issued by MCA.

Step 6:Bank Account Opening & Business Start

9. Post-Incorporation Compliance

• Conduct Board Meetings
• Maintain statutory registers
• Annual Return (MGT-7)
• Financial Statements (AOC-4)
• Appointment of Auditor (ADT-1)
• File returns with MCA every year

10. Advantages Over Cooperative Societies

• More credibility
• Better financing options
• Clear corporate governance
• No political interference
• Easy interstate operations
• Stable management structure