Overview
What a producer company is
A producer company is a company owned by people who produce something themselves, such as farmers, dairy and fish producers, weavers or craftspeople. It is registered under the Companies Act, 2013 under special provisions for producer companies.
The company pools its members' produce and work. It can buy inputs together, process and grade produce, and sell it at better terms than members could alone. Many farmer producer organisations (FPOs) use this form.
Members' liability is limited to their shares. Only producers or producer institutions can be members.
Requirements
What you need to register a producer company
We check each of these with you before anything is filed.
Producer members
The company needs a minimum number of members who are producers, producer institutions or both.
Directors
The board must meet the minimum and maximum number of directors set by law.
Objects
The business must relate to the members' produce, such as production, processing, marketing or supply of inputs.
Name
The name must show that it is a producer company.
Registered office
An address for official mail, with proof that the company may use the premises.
Digital signatures and DIN
Directors sign the forms online with digital signature certificates. Each director needs a Director Identification Number.
What's included
What our producer company support includes
Complianto professional feeContact our team for the fee for your case
Government feesExtra
- The fee depends on the number of members and directors.
- We confirm the total before we start.
Members and directors
Documents of members and directors
- PAN and Aadhaar of each director and member
- A recent address proof and photo of each director
- Proof that each member is a producer, as we advise for your case
- Email address and mobile number of each director
Office
Documents for the registered office
- Rent agreement, if the place is rented
- A recent electricity bill or property tax receipt
- No-objection letter from the owner of the premises
Producer institutions joining as members also send their own registration documents and a resolution. We tell you exactly what to send.
Process
How producer company registration works with Complianto
- 01
Fill the form
Tell us what your members produce, how many there are and what the company will do.
- 02
Members and objects check
Our expert checks the members, directors and objects against the rules for producer companies.
- 03
Signatures and name
Directors get digital signatures, and we apply for the company name.
- 04
Incorporation
We draft the memorandum and articles and file the incorporation forms on the MCA portal.
- 05
Start operations
Use the certificate of incorporation to open the company bank account and collect share money from members.
After set-up
Running your producer company
- Every yearHold the annual general meeting and file the annual accounts and return with the registrar.
- Every yearStatutory audit, and any other audit the law requires for producer companies.
- Every yearFile the company's income tax return. See income tax return filing.
- From the startKeep proper books of members' supplies and payments. See bookkeeping and accounting.
- When you tradeRegister for GST when your business needs it. See GST registration.
Who can be a member of a producer company?
Only producers, such as farmers or artisans, and producer institutions can be members.
How many members are needed to start?
The Companies Act sets a minimum number of members for a producer company. Our expert confirms it for your group before filing.
What can a producer company do?
Activities linked to its members' produce, such as production, harvesting, processing, grading, marketing and selling, and supplying inputs to members.
Is a producer company the same as a cooperative?
No. A producer company is registered under the Companies Act and follows company law. A cooperative is registered under cooperative societies law.
Can members sell their shares to anyone?
No. Shares of a producer company can be held only by members, and transfer is restricted.
Can a producer company pay profits to members?
It can share surplus with members under rules set by law and its articles.
Is a producer company a non-profit?
No. It is run for its members' benefit and can share surplus with them. For a non-profit, see trust, NGO and society registration.
Is Complianto a government body or a CA firm?
Neither. Complianto is a compliance facilitation platform operated by Mentorcorp Private Limited. You can also apply directly on the official portal without our fee.
More services
Services for producer groups
Company Registration
Compare business structures in India.
GST Registration
Get a GSTIN for the company.
Bookkeeping and Accounting
Books for members' supplies and sales.
Income Tax Return
The company's yearly tax return.
Section 8 Company
A non-profit company.
Trademark Registration
Protect your produce brand.
