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Producer Company Registration


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A producer company in India is a company registered under the Companies Act with mutual objectives of agriculture production, procurement, post-harvesting processing activities, import goods, selling and distribution, export of primary production of the members to earn more benefits. A producer company is a committee of 10 or more people and 2 institutions with a joint objective of dealing with agricultural and post-harvesting processing activities. In simple words, it is a cluster of farmers who joint hands for better living and to improve their income.

Documents required for producer company Registration:-
  •    PAN Card/ Passport/ Election ID Card of all the directors and shareholder
  •    Latest Bank Statement Voter's ID/Driver's License/passport of all the directors and shareholders
  •    Passport-sized photographs of all directors and shareholder
  •    Copy of any Utility bill as a residential proof In case of rented property a scan copy of Rent agreement along with NOC from the owner
  •    In case of owned Property, a copy of Property Papers.
Pre-registration requirements to form Producer Company:-
  •    Minimum number of 5 directors and 10 members should be there.
  •    Minimum paid-up capital of Rs. 5 Lakhs is required to form the company.
  •    Company can have as many as members they want as there is no maximum limit of the members.
  •    The Producer Company in India cannot be deemed as a public company.
  •    The former company can have only equity share capital.
  •    There should be at-least four boards meeting every year and the meetings should not be held less than once every three months.

Basic requirement to form a farmer producer company: ·


10 or more than 10 individuals
2 or more than 2 institutions

Advantages of Producer Company Registration in India

Separate Legal Entity

A producer company is a separate legal entity, and there is a limited liability of its members.

Greater Credibility

Greater credibility is offered by Producer Company as compared to other unregistered organizations of agriculturists or farmers.

Easy Management

Through the filing of simple forms with the concerned ROC, we can make changes in the Board of Management of a producer company swiftly.

Owing Property

Duly registered producer company can sell or own a property in its own name and it is entitled to accept deposits from or give loans to its agriculturist members at very reasonable rates of interest.


Deposits Acceptance

A Producer Company is eligible to accept deposits in the form of recurring deposit or fixed deposit. It can also disburse loan among the members and farmers at a reasonable rate of interest.

Provisions regarding loans and investments made by the Producer Company

Producer Company is formed by the number of individuals who are primary producers and in need of timely financial assistance. Therefore, a special provision was passed as per companies act for loan sanctioning to the members of the producer company.

Financial assistance can be provided to the members of the Producer Company through the following:-

Credit facility

The credit facility will be available to a member of the producer company for a period of not more than 6 months.

Loans and advances

Loan and advances will be issued to the members against security for a period of not more than 7 years from the date of loan disbursement.

NABARD (National Bank for Agriculture & Rural Development) Loan

To meet the requirement of the Producer Company, financial assistance is provided by the NABARD (National Bank for Agriculture & Rural Development). In the year 2011, Producer Organization Development Fund (PODF) of Rs. 50 Crore has been set up by the NABARD out of the NABARD operating surplus.