Overview of Producer Company Registration

In a Producer Company Registration, a "Producer" is a person engaged in any activities related to the primary producer. The producer company, therefore, is formed by producers associated with activities such as producing, harvesting, processing, packaging, handling, marketing, exporting, selling, or importing goods and services. Several documents are required, and a specific process is to be followed for the registration of the producer company. To register as a producer company in India, the company must be registered with the Ministry of Corporate Affairs MCA under The Companies Act 2013. Registration of a producer company is critical, but registration is crucial for the Producer Company, allowing only authorized producers to operate within the country. This write-up will examine the regulations, the documents required, and the process for a producer company incorporation.

Requirements of Producer Company Registration

In this section we will discuss the requirements for a producer company in India as follows:

1. Minimum Member Requirement - There must be a minimum of 10 members for a producer company registration, and the members in the producer company must be associated with producing goods and services.


2. Minimum Capital Requirement - For establishing a producer company, there must be a minimum capital of 5 lakhs, and the members of the producer company should contribute towards the capital.


3. Board of Directors - There must be a Board of Directors in the producer company, including five members, among which two-thirds of the members should be producers.

Characteristics of Producer Company Registration

The characteristics of the producer company are regulated as per the Companies Act 2013. The significant attributes of a Producer Company Registration are as follows:

• The maximum number of members is fifty for a Producer Company Registration.


• The registered producer company would be considered equivalent to a private limited partnership.


• To register the producer company, at least ten primary producers are required, and two persons are required to register the members as producers.


• The profit earned from the producer company would have to be shared in proportion to the members who had invested the money towards the company.


• A producer company can never convert to a public company.


• The liability of the members in a producer company is only up to the unpaid amount towards the share that they possess.

Advantages Of Producer Company Registration

There are several benefits of a farmer producer company registration; the benefits are listed as follows:

• Limited Liability - Liability is limited in the producer company registration, which entitles the members as the personal Assets of the members are not at risk even if there are some financial complications within the company. Therefore, it helps towards the smooth functioning of the company without any pressure on the members.


• Distinct Legal Entity - Producer company entitles the members to a separate legal identity of the company, which explains how the members are to enter contracts and own Assets of the company; this also increases the credibility and security amongst the creditor’s customers and suppliers.


• Tax exemption - A producer company gives several tax benefits to the company's members, such as exemption from income tax for the profit earned during the first five years of the operation of the producer company. It helps towards the business growth during the initial years of the company.


• Raising Capital - A producer company helps raise capital from the investors of shares and debentures. This provision supports the producer company in raising a large amount of funds. The business provides several market investment options; a producer company can also quickly get financial assistance from banks or other Financial Institutions.

Documents required for Producer Company Registration

There are several documents required for the incorporation of a producer company as per the Companies Act 2013, as follows:

• PAN


• Identity proof


• Bank statement


• Photograph of the members.


• Official email ID


• Contact details.

Process of Producer Company Registration

The Process of incorporation of a Producer Company is stated in a step-by-step process below as follows:

• Digital Signature Certificate (DSC) - The first step is to obtain a digital signature certificate and after that, for receiving the DIN, form DIR3 should be used along with the Digital Signature Certificate of the directors.


• Filing INC1 - After receiving the DSC and DIN, the company name of the producer company must be finalized. One must secure the company name by filing form INC1 with the ROC (Registrar of Companies), and six names in order of their preferences should be filled. It must be noted that every company name must have the word producer company at the end of the name.


• Memorandum of Association (MOA) and Article of Association (AOA) - The memorandum of association and article of association need to be drafted according to the company’s objective and purposes, which is essential for the incorporation of the producer company.


• Declaration - The next step is to give a declaration in form INC 8 by company professionals.


• Affidavit Submission - The company's shareholders must sign an affidavit declaring the shareholder's legal capacity to participate in the shareholding


• NOC Submission - The registered company address should be provided with the utility bill and an NOC; a lease agreement must be attached if the property is not owned.


• DIR 2 and DIR 3 - The director from DIR 2 and DIR 8 will have to be filled up, which would imply the consent towards the company to become directors.


• Form INC7, INC22, and DIR12 - Form INC7, INC22, and DIR12 must be uploaded to the RoC (Registrar of Company) website along with all the written documents.

After successfully verifying all the documents in the form, The RoC will issue the certificate of incorporation to the producer company, and the company's operation can soon start afterward.

Why Adviso?

Producer Company Registration involves requirements, document preparation, and pre- and post-compliance obligations. It is essential to comply with the specific terms of the Company's Articles of Incorporation (MCA). The Producer Company Registration can be a tedious process without professional support. That’s where the Adviso comes in.

At Adviso, we provide expert services for online company registration on the MCA website. Our Lawyers, CA, and CS experts will be there throughout the journey to ensure your company lists smoothly and efficiently.

With Adviso's expertise and assistance, you can easily navigate the complexities of company registration, saving time and ensuring compliance with all necessary regulations.