Starting a Producer Company in India is a great step for farmers, artisans, and rural entrepreneurs who want to work collectively while enjoying the benefits of a corporate structure. A Producer Company is a legally recognized entity that allows primary producers to operate as a business while enjoying the perks of a Private Limited Company.
If you’re wondering how to register a Producer Company with Firm Registration, this guide will walk you through the process, requirements, and benefits.
What is a Producer Company?
A Producer Company is a special type of company under the Companies Act, 2013, designed to help farmers and rural producers work together as a corporate entity. It allows primary producers to improve their income, access better technology, and work in an organized structure.
A Producer Company can engage in activities like:
Production and harvesting of produce
Processing of agricultural goods
Marketing and selling farm produce
Import and export of primary produce
Providing credit and financial assistance to members
This model helps small farmers and producers eliminate middlemen, ensuring better earnings and fair trade practices.
Eligibility Criteria for Producer Company Registration
Before you start the registration process, ensure your company meets the following eligibility conditions:
Members Requirement:
Minimum 10 producers (individuals) or
Minimum 2 producer institutions (organizations) or
A combination of both
Business Objective: The company must be formed for the benefit of farmers or rural producers.
Company Name: The name must include “Producer Company Limited” at the end.
Documents Required for Producer Company Registration
To register a Producer Company, you need the following documents:
For Directors & Shareholders:
PAN Card of all members
Aadhaar Card or other ID proof
Address proof (Bank statement, electricity bill, etc.)
Passport-size photographs
For Registered Office Address:
Utility bill (electricity/water bill)
Rent Agreement (if on rent)
No Objection Certificate (NOC) from the landlord
Other Required Documents:
Digital Signature Certificate (DSC) for directors
Director Identification Number (DIN)
Memorandum of Association (MoA)
Articles of Association (AoA)
Step-by-Step Process for Producer Company Registration
Step 1: Obtain a Digital Signature Certificate (DSC)
Every proposed director must obtain a DSC, which is used to sign electronic documents during the registration process. This can be obtained from government-authorized agencies.
Step 2: Apply for Director Identification Number (DIN)
Each director must apply for a DIN, which is required to hold a position in the company. This is done through the Ministry of Corporate Affairs (MCA) portal.
Step 3: Name Approval through RUN (Reserve Unique Name) Service
Choose a unique name for your Producer Company.
Submit it for approval on the MCA portal.
The name must contain “Producer Company Limited”.
Step 4: Drafting MOA & AOA
Memorandum of Association (MoA) – Defines the company’s objectives and operations.
Articles of Association (AoA) – Specifies the rules and regulations governing the company.
Step 5: Filing SPICe+ Form for Registration
Fill out the SPICe+ (Simplified Proforma for Incorporating Company Electronically) form.
Attach necessary documents.
Apply for the MCA.
Step 6: Certificate of Incorporation (COI)
Once approved, the Certificate of Incorporation is issued by the Registrar of Companies (ROC), confirming the legal existence of your Producer Company.
Firm Registration for Producer Company
Many Producer Companies also register as a firm to carry out specific activities like trading, procurement, and contract-based services. Firm registration ensures additional legal compliance and tax benefits.
Types of Firm Registration for a Producer Company
Partnership Firm – If multiple producers want to form a joint business.
Limited Liability Partnership (LLP) – Offers liability protection to members.
Sole Proprietorship – Suitable for small-scale producer enterprises.
Documents Required for Firm Registration
PAN & Aadhaar of partners/owners
Partnership deed (for partnership firms)
Proof of business address
GST Registration (if applicable)
Bank account details
Benefits of Registering a Producer Company
Legal Recognition – Makes the business a separate legal entity.
Limited Liability – Members’ assets are protected.
Access to Government Schemes – Eligible for agricultural and rural development benefits.
Better Market Opportunities – Facilitates large-scale production and selling.
Financial Assistance – Easier access to loans and grants from banks.
Conclusion
Registering a Producer Company with Firm Registration is a powerful way to transform small-scale producers into a well-organized business entity. By following the right legal process, farmers and rural entrepreneurs can leverage benefits like limited liability, financial aid, and better market reach.
If you’re looking to start a Producer Company, ensure all the necessary documents and legal steps are followed carefully. Consulting a professional for Company & Firm Registration can make the process smoother and hassle-free.
Start your journey towards a successful Producer Company today and empower your business with the right legal structure!
