10–15
Days (Typical)
100%
Compliance Assured
What is a Producer Company?
A Producer Company is a special type of company formed by farmers, producers, or individuals engaged in primary production activities such as agriculture, horticulture, dairy, fisheries, or handicrafts. It combines the benefits of a cooperative society with the structure and governance of a private limited company.
This structure is governed under the Companies Act, 2013 (Chapter XXIA) and is designed to improve the income and efficiency of producers through collective management, processing, and marketing of produce.
A Producer Company operates as a separate legal entity with limited liability and perpetual succession, allowing it to own property, enter into contracts, and carry out business activities in its own name.
Minimum Requirements at a Glance
Minimum five directors required for governance.
Minimum 10 producers or 2 producer institutions.
No statutory minimum paid-up capital requirement.
Definition as per the Companies Act, 2013
Section 378A of the Companies Act, 2013, defines a Producer Company as a body corporate that:
- Is formed by 10+ individual producers or 2+ institutions
- Carries out procurement, marketing, or selling of produce
- Operates for the mutual benefit of members
- Follows specific governance per Chapter XXIA
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Key Features of a Producer Company
D BIZ CONSULTANCY helps producers and entrepreneurs understand and leverage these key features for sustainable growth and collective success.
Limited Liability
The liability of the members is limited to the amount of shares held by them, protecting their personal assets from company debts.
Mutual Benefit Principle
The company operates primarily for the benefit of its members. Surplus is distributed through patronage bonus and limited dividend based on participation.
Professional Governance
Managed by a Board of Directors elected from among members. Ensures structured management, transparency, and better decision-making.
Perpetual Succession
The company continues to exist irrespective of changes in membership or management, ensuring long-term continuity.
Access to Government Schemes
Eligible for various government subsidies, schemes, and financial assistance aimed at supporting agriculture and producer-based businesses.
Benefits of a Producer Company
D BIZ CONSULTANCY helps producers and organizations leverage these advantages for sustainable growth and collective success.
Limited liability protection, safeguarding members’ personal assets from business risks
Enhanced credibility among buyers, suppliers, banks, and government agencies
Collective strength of producers leading to better pricing and market access
Easier access to funding, subsidies, and government support schemes
Perpetual succession ensuring continuity of operations despite member changes
Better bargaining power in procurement, processing, and selling of produce
Separate legal entity enabling ownership of assets and independent operations
Professional management structure improving efficiency and transparency
Opportunity for value addition, branding, and direct market linkage
Difference Between Business Structures
Understand how a Producer Company compares with other business structures.
| Feature | Producer Company | Private Limited | LLP | Partnership |
|---|---|---|---|---|
| Liability | Limited to share capital | Limited to shares | Limited to contribution | Unlimited |
| Legal Entity | Separate legal entity | Separate legal entity | Separate legal entity | Not separate |
| Ownership | Min 10 producers or 2 institutions | 2–200 shareholders | 2+ partners | 2–50 partners |
| Objective | Mutual benefit of producers | Profit-oriented business | Service / business | Profit-oriented |
| Profit Distribution | Patronage bonus + limited dividend | Dividend to shareholders | Profit sharing | Profit sharing |
| Compliance | Moderate compliance | Higher compliance | Moderate | Minimal |
| Funding | Limited external funding | Easy access to investors | Limited | Limited |
| Best For | Farmers, agriculture, producer groups | Startups, scalable businesses | Professionals, SMEs | Small businesses |
Documents Required
D BIZ CONSULTANCY assists clients with collecting and preparing all required documentation.
Common Rejection Prevention Tips
- •Address proofs must match spelling across PAN / Aadhaar / Passport and the SPICe+ application.
- •Registered office proofs must be consistent (owner name on utility bill, rent agreement, and NOC).
- •Utility bills and bank statements should be dated within the last 2 months.
For Domestic Nationals
Identity Proof
PAN Card (Mandatory), Aadhaar Card, Passport, or Voter ID
Address Proof
Latest utility bills or bank statements (within last 2 months)
Photographs
Recent passport-sized photographs of all directors and members
For Foreign Nationals / NRIs
Identity Proof
Passport (Mandatory)
Address Proof
Driving License, Bank Statement, or Residence Permit
Notarisation / Apostille
All documents must be notarised or apostilled per MCA requirements
For Company Registration
Memorandum of Association (MOA)
Detailing objectives and operational scope.
Articles of Association (AOA)
Specifies internal rules and governance structure.
Declaration & Consent Forms
DIR-2, INC-9, and other mandatory declarations.
DSC & DIN
Digital signatures and IDs for all designated directors.
For Registered Office
Proof of Address
Electricity or water bill not older than 2 months.
Rent Agreement & NOC
Valid lease document along with an NOC from property owner.
Ownership Proof
Sale deed or property tax receipt for self-owned premises.
Step-by-Step Producer Company Registration Process
A Producer Company provides a structured platform for farmers and producers to carry out collective business activities with limited liability. The registration process involves submission of documents, MCA filings, and compliance with legal requirements.
1Obtain a Digital Signature Certificate (DSC)
A Digital Signature Certificate (DSC) is mandatory for all proposed directors to sign electronic documents on the MCA portal. It ensures authenticity and security of filings. Our team assists in obtaining DSC from certified authorities.
2File the SPICe+ Form
The SPICe+ form is an integrated online form used for Producer Company incorporation.
- Part A: For name reservation (must include "Producer Company Limited")
- Part B: For incorporation, DIN allotment, PAN, TAN, and other registrations
- AGILE-PRO-S (INC-35): Covers GST registration, EPFO, ESIC, bank account opening, and other services
3Draft and File the MOA and AOA
Memorandum of Association (MOA)
Defines producer-related objectives such as production, procurement, processing, and marketing activities.
Articles of Association (AOA)
Specifies internal governance, member rights, and management structure.
We draft and file these documents ensuring compliance with legal provisions.
4Obtain the Certificate of Incorporation
The Registrar of Companies (ROC) issues the Certificate of Incorporation, confirming the legal existence of the Producer Company.
- This includes CIN, PAN, and TAN of the company.
5Opening Bank Account
After incorporation, open a current bank account in the company's name for all financial transactions. Submit:
- Certificate of Incorporation
- Permanent Account Number (PAN)
- MOA & AOA
- Certified Board Resolution
- KYC of directors & authorized signatories
6Depositing Capital Contribution
Members must deposit their agreed share capital into the company's bank account as per MOA.
- Each member contributes as per shareholding
- Bank statement serves as proof of capital deposit
7Commencement of Business Compliance (INC-20A)
Filing of INC-20A is mandatory for Producer Companies with share capital before commencing business operations.
- Declaration confirming receipt of share capital
- Verified by a Chartered Accountant / Company Secretary
- Must be filed within 180 days of incorporation
Timelines
Producer Company Compliance Deadlines
First Auditor Appointment
Within 30 Days
The first auditor must be appointed by the Board of Directors within 30 days of incorporation.
Commencement of Business
Within 180 Days
Form INC-20A must be filed with the ROC within 180 days of incorporation to start operations.
Annual General Meeting
Within 6 Months
The first AGM must be held within 18 months of incorporation or 6 months from the end of the financial year.
Financials Filing (AOC-4)
Within 30 Days of AGM
The audited financial statements must be filed with the ROC within 30 days of the AGM.
Legal Risks
Penalties & Risks
Late filing of AOC-4 and MGT-7 attracts a penalty of ₹100 per day per form until compliance is met.
Failure to file financial statements for three consecutive years results in director disqualification for five years.
Non-filing of INC-20A (Commencement of Business) allows the ROC to strike off the company's name from the register.
Non-compliance with Board meeting or AGM requirements can lead to fines ranging from ₹5,000 to ₹1 Lakh on directors.
Why D BIZ CONSULTANCY for Producer Company Registration?
Registering a Producer Company is a crucial step for farmers and producers to build a structured and legally compliant business. The process involves proper documentation, drafting, and regulatory filings, which can be complex without expert guidance.
What D BIZ Handles
- Document validation and pre-registration review
- Name selection and approval (with "Producer Company Limited")
- Object clause drafting (producer-focused and compliant)
- DSC procurement and DIN application
- SPICe+ / AGILE-PRO-S filing and ROC follow-up
- MOA & AOA drafting specific to producer activities
- ROC resubmission handling (if required)
- Post-incorporation setup (PAN, TAN, bank account guidance)
- INC-20A filing and commencement support
- Annual compliance guidance and reminders
What You Provide
- Identity and address proof of all directors and members
- Registered office address proof (rent agreement / ownership documents)
- Passport-sized photographs
- Details of producer activities (agriculture, dairy, etc.)
- Member and shareholding details
- Capital contribution details
- Bank statement confirming share capital deposit
D BIZ CONSULTANCY simplifies the entire Producer Company registration process by managing documentation, drafting, and filings efficiently. From preparing compliant MOA & AOA to handling MCA approvals and post-registration setup, we ensure your company is legally strong from day one.
With our expertise, you can focus on your production and business growth while we take care of compliance and legal requirements. D BIZ CONSULTANCY is your trusted partner for building a successful Producer Company.
Expert Guidance
Personalized support from incorporation specialists
End-to-End Service
Complete assistance from registration to compliance
Transparent Process
Clear communication with no hidden charges
Timely Delivery
Quick turnaround time for all services
FAQs on Producer Company Registration
Last updated: Feb 2026
Whether you're understanding eligibility, registration process, compliance, funding, or operational aspects — here are the most relevant and practical questions answered clearly.