All About Producer Companies.


Producer companies are created when a group of 10 or more individuals or two or more institutions that manage the post-harvest processing activities or agricultural produce. Producer companies are a stark representation of a group of agriculturists and farmers that are determined to increase their incomes, improve the status of their available support and profitability, and raise their standard of living.

A producer is defined as any human being engaged in activities that are directly related to any primary produce such as farming by the Companies Act. A producer company does production, procurement, harvesting, grading, pooling, marketing, handling, selling, and export of primary produce of the members or import any goods and services to benefit them. An online producer company registration is one of the steps that producer companies can use to become an authentic establishment.

Benefits of producer companies

Exclusive advantages which are obtained by being a producer company stem from the fact that India is an agro-based country where more than 85% farmers own small-land holdings. Producer companies are very useful for such farmers and benefit them immensely.

  1. Producer companies offer facilities such as limited liability and perpetuity and they are treated as a separate legal entity.
  2. Unregistered organizations of farmers and agriculturists don’t offer credibility that is as good as producer companies.
  3. A few simple forms need to be filed with the required ROC for making the changes in the board of management of a producer company.
  4. A duly registered producer company that is completely authentic has the ability to sell and own property in its own name.
  5. A company that has taken the help of producer company registration services and has become an authentic producer company becomes entitled to accept deposits and give out loans to its members (farmers and agriculturists) at reasonable rates of interest per annum.

Process of registration

  1. There must be a combination of the following for a producer company to be eligible for a registration:
    a) Ten or more individuals that are producers
    b) Two or more institutions that are producer institutions
    c) A combination of the above two categories
  2. The registration process of a producer company is analogous to a Private Limited Company. The first Directors of the Producer Company that have been proposed need to obtain a DSC and DIN.
  3. The application for the name reservation of the company can be filed with the Registrar of Companies (ROC) once the DIN and DSC have been obtained.
  4. The application for incorporation in the prescribed format can be filed after the company name has been approved by the ROC.
  5. The Certificate of Incorporation can be issued by the Registrar once he/she is satisfied with the application of incorporation of the producer company. The producer company functions just like a PLC with certain provisions once it is incorporated.
  6. The producer company doesn’t have a limitation on the number of members it can take as opposed to private companies. A producer company cannot be deemed to become a public limited company even though it ends with the words “Producer Limited Company”.


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