Producer Company

Empowering Farmers and Producers to Form a Legally Recognized Entity for Agri-business and Cooperative Endeavors.

producer company service

A Producer Company, as defined by the Companies Act, 2013, is a unique form of business entity that aims to uplift and empower agricultural producers and rural entrepreneurs. It is formed by a group of ten or more individuals, or two or more producer institutions, or a combination of both, involved in primary production activities. The main objective of a Producer Company is to enhance the income and livelihoods of its members by promoting collective farming, production, procurement, and marketing of their produce. It operates on the principles of self-help, mutual assistance, and democratic decision-making, with the ultimate goal of improving the socioeconomic conditions of its members sustainably. Learn more about the legal framework on the Ministry of Corporate Affairs (MCA) and support programs on NABARD for Producer Companies in India.

These companies need to comply with the relevant provisions of the Companies Act, including filing annual returns, maintaining proper books of accounts, conducting board meetings, and complying with other statutory requirements. The legality of a Producer Company ensures that it can enter into contracts, own assets, sue or be sued, and carry out various business activities per the law.

How Many Persons Are Required:

To form a Producer Company in India, a minimum of ten individuals (individuals being farmers or their representatives) or two or more producer institutions or a combination of both is required. The individuals or producer institutions involved must meet the eligibility criteria specified by the Ministry of Corporate Affairs (MCA). These individuals or institutions come together to promote the economic interests of the primary producers in the company, ensuring their empowerment and collective growth. By pooling their resources and expertise, the members of the Producer Company work towards improving agricultural or post-harvest management activities, production, procurement, processing, marketing, export of primary produce, and other related activities.

required documents & information:

The following are the documents and information required for the Producer Company: 

  • Directors/Shareholders’ Documents:
  • PAN Card of all person
  • Identity & Permanent Address proof – Aadhar Card/Driving License/Passport/Voter ID of all person
  • Residential Address Proof – Bank Statement, Utility Bill like electricity bill, water bill, telephone bill (not older than 2 months)
  • Passport-sized photographs of all person
  • Contact details of all person
  • Registered Office Documents:
  • Utility bills like electricity bills, water bills, or telephone bills (not older than two months).
  • Rent Agreement and No-objection certificate also from the owner of the registered office premises in case of rented property
  • Directors/Shareholders’ Declaration and Information:
  • Proof of Qualifications and Occupation
  • Duration of Stay at a present residential address
  • Personal Mobile and Email ID
  • Shareholders’ Proof as Farmers
  • Khatauni Proof of all shareholders
  • Share Capital Information:
  • Details of authorized share capital and paid-up capital of the company
  • Shareholding pattern and distribution of shares among shareholders
  • Memorandum of Association (MOA) and Articles of Association (AOA):
  • MOA, which defines the company’s objectives, scope of business, and relationship with shareholders and stakeholders
  • AOA, which outlines the company’s internal rules, regulations, and governance structure

Note: Compliance with the Companies Act and producer company regulations is essential to avoid penalties or legal repercussions in this service.

Vizttax's Comprehensive Solutions for Setting up and Managing Producer Companies.

Vizttax provides comprehensive assistance in establishing and managing producer companies in compliance with Indian law. Our expert team guides you through the entire process, ensuring legal compliance and seamless incorporation. We offer support in business planning, financial management, and statutory compliance to ensure smooth operations. Our record keeping services ensure accurate documentation, while our cooperative networking helps foster collaborations among farmers and producers. We assist in accessing markets, identifying opportunities, and establishing buyer relationships. With our long-term support and advisory services, we ensure the sustained success and growth of your producer company, aligned with Indian legal requirements.

These are the following points outlining Vizttax’s extensive solutions for setting up and managing producer companies:

  • Expert Guidance: Professional assistance throughout the entire process of establishing and managing a producer company.
  • Legal Compliance: Ensuring adherence to all legal and regulatory requirements for operating a producer company.
  • Incorporation Support: Assisting with the seamless incorporation of the producer company, including documentation and filing.
  • Business Planning: Helping farmers and producers develop robust business plans for their agri-business activities.
  • Financial Management: Offering guidance on financial strategies, budgeting, and optimizing resources for sustainable growth.
  • Statutory Compliance: Ensuring compliance with statutory obligations, including filings, audits, and governance requirements.
  • Record Keeping: Maintaining accurate and up-to-date records for the producer company's operations and transactions.
  • Cooperative Networking: Facilitating connections and collaborations among farmers and producers within the producer company.
  • Market Access: Assisting in identifying market opportunities, establishing buyer relationships, and expanding market reach.
  • Long-term Support: Providing ongoing support and advice to ensure the smooth functioning and success of the producer company.

Frequently Asked Questions:

A producer company is a legal entity formed by farmers, agriculturists, or rural producers to facilitate collective farming, production, procurement, and marketing of primary produce.

Incorporating a producer company provides benefits such as limited liability protection, access to financial assistance, improved market access, enhanced bargaining power, and opportunities for collective growth and development.

A producer company must have a minimum of five directors.

Yes, individuals from different states can form a producer company as long as they meet the prescribed requirements and comply with the applicable laws and regulations.

Yes, individuals from different states can form a producer company as long as they meet the prescribed requirements and comply with the applicable laws and regulations.

The process involves obtaining Digital Signature Certificates (DSC), Director Identification Numbers (DIN), drafting and filing of the Memorandum and Articles of Association, obtaining the Certificate of Incorporation, and fulfilling post-incorporation compliance requirements.

Yes, producer companies may be eligible for various government schemes, subsidies, and incentives aimed at promoting agricultural and rural development.

Yes, a producer company can raise funds through loans, investments, or issue of shares, subject to the provisions of the Companies Act and applicable regulations.

A producer company must comply with annual filing of financial statements, conduct regular board meetings, maintain proper records and accounts, and adhere to other statutory requirements applicable to companies.

Vizttax offers expert guidance and support in incorporating and managing producer companies, ensuring compliance with Indian laws. We assist in document preparation, filing, compliance, financial management, and advisory services to facilitate the smooth functioning and growth of producer companies.

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