Farmer Producer Company Registration
Do you want to start a business of agricultural production, export, and trading of primary production in India? Then you are at the right stage as a Producer Company is an easiest and affordable way to start loan business in India. The minimum capital requirement for Producer Company registration is Rs. 5 lakhs.
Producer Company can only do the business of production, procurement, harvesting, grading, marketing, trading of the primary production with the help of its members, and financing them for these activities which include extending credit facilities also. It cannot deal with the public directly and can only work with its members.
However, one can easily make members under the Producer Company with few documents and easy process.
Also, through Producer Company one can start to loan Business India without RBI approval.
Sourcepect is a specialized company for registering and managing Producer Company in India.
What is a Producer Company?
A producer company is a body corporate registered under Companies Act, 2013 as Producer Company and shall carry on the activities specified under the Act.
It consists of a group of people involved in the production of primary produce or having one or more objectives relating to primary produce. In a producer company, you can appoint agriculturist members and accept deposits in the form of RD/FD and provide them maturity as well as distribute loans to your farmer members and charge interest from them.
Benefits of Producer Company Registration
The Producer Companies have certain exclusive Benefits:-
- Separate Identity: A separate legal entity offering limited liability and perpetuity.
- Creditability: Government by the central Government, the Producer companies offer greater creditability than that provided by unregistered producer’s organization.
- Easy Management: Changes in the Board of Management of a producer company can easily and swiftly be made just through filing some simple forms with ROC.
- Deposit Acceptance: A producer company can accept a deposit in the form of RD/FD, and give maturity as well as distribute loans to its farmer/agriculturist members, and charge reasonable interest from them.
Activity can be carried by the Producer Company/Agriculture Company
Producer Company mainly involved in activities related to producing and harvesting agriculture produce. Following are the details of activities that can be carried by Company:
- Crops and Farm Products Processing: Processing of crops involves brewing, preserving, drying, venting, distilling, packaging, and canning.
- Manufacturing of Crops And Farm Products: Manufacturing involves the production on a large scale by using the high tech and latest technologies.
- Assistance And Education: Large part of farmer population in our country are deprived of using new technologies, so guidance and assistance are provided to them which help in better production. Education related to mutual assistance principle is provided to the members of farmer Producer Company.
- Render various services such as technical, consultancy, training and other promotional activities as per the interest and requirements of the producer company.
- Insurance of the producer and his primary produce
- Make sure to generate, transmit and distribute power and best utilization of water and land resources.
- Promotes various techniques related to mutual assistance and mutuality
- Financial assistance to the members for marketing, procurement or other activities.
- Some additional activities to promote the mutuality and mutual assistance amongst the members of the company.
Producer Company Vs Cooperative Society
- A producer company is a hybrid between a private limited company and a cooperative society.
- It combines the goodness of a cooperative enterprise and the vibrancy and efficiency of a company.
- It accommodates the unique elements of cooperative business with a regulatory framework similar to that of a private limited company
Documents Required for Registration
Procedure of Registration of Producer Company

Key Points for Producer Company Registration
- The members shall necessarily to be primary product producers
- Name of the company shall end with the words “Producer Company Limited”.
- Minimum Members shall be 10.
- Minimum Directors shall be 5.
- Producer Company can carry only activity prescribed under the Act.
- The proposed Producer Company shall deemed to be a private limited company as per the provisions of the Companies Act.
- The first AGM should be conducted within 90 days from the date of incorporation.
Difference between the Producer Company, Private Limited Company, and Public Limited Company
Description | Producer Company | Private Limited Company | Public Limited Company |
---|---|---|---|
Object | The object specified under Section 581B of the Companies Act, 1956. | Any lawful object | Any lawful object |
Name of the Company | End with “Producer Company Limited” | End with “Private Limited Company” | End with “Public Limited Company” |
Members | 10 or more individuals or 2 or more institutions or their combination. No restriction on the maximum number of members | Minimum 2 and maximum 200. | Minimum 7 and no restriction on the maximum number of members |
Directors | Minimum 5 and maximum 15 directors | Minimum 2 and maximum 15 directors | Minimum 3 and maximum 15 directors |
Tax Exemptions for the Registered Producer Companies
Registered Producer Company enjoys various tax benefits and exemptions under the Income Tax Act, 1961. Agriculture income is 100% exempted while income earned production of green tea is 60 % exempted under the law.
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All these benefits make the Producer Company Registration more advantageous for farmers in India. This can help them in more production and better credit facilities, thus resulting in more profits from their produce.