Producer Company Registration - Start Farmer Producer Company

Introduction

Producer Company registration involves establishing a unique business structure under the Companies Act of 2013. These companies are specifically designed for farmers and other agricultural producers, aiming to enhance the marketing and sale of their products. The distinctive feature of producer companies lies in offering limited liability to their members, relieving them from personal responsibility for the company’s debts and obligations.

As Bright Advis, we offer comprehensive assistance and support for the seamless registration of Producer Companies. Our services encompass guiding clients through the entire registration process, ensuring compliance with the legal requirements outlined in the Companies Act of 2013. Our commitment is to facilitate the creation of a legal framework that enables farmers and agricultural producers to collectively thrive and enhance their socio-economic well-being.

We guarantee 7 days Registration of your Producer Company.

Documents Checklist

Bright Advis has compiled a detailed list of documents that are required to register a Producer Company. Speak to our experts for any queries.

Identity Proof

Address Proof

Proof of Registered Office

process

Registration Process

in 3 Simple Steps

At Bright Advis, we have simplified the entire registration process of a Producer Company into 3 simple steps. This makes your journey smooth, structured and easy.

Following the successful verification of documents, Bright Advis ensures a seamless process for the issuance of Certificate of Incorporation from the Ministry of Corporate Affairs (MCA). The COI includes essential details such as the Company Identification Number, PAN and TAN.

benefits

What's Good

about a Producer Company

Collective Strength

Formation of a legal entity allows agricultural producers to collectively leverage their strength, facilitating better marketing and selling of their products.

Limited Liability

Members of a Producer Company enjoy limited liability, ensuring that they are not personally responsible for the debts and liabilities of the company.

Enhanced Market Access

Producer Companies enable farmers to access wider markets and negotiate better prices for their produce by aggregating resources and negotiating as a collective.

Profit Distribution

The profits earned by the Producer Company are distributed among its members, ensuring equitable sharing of benefits and encouraging continued participation.

Government Support

Producer Companies often receive support and incentives from the government, promoting sustainable agricultural practices and rural development.

Social Impact

Producer Companies contribute to the overall socio-economic development of rural areas by empowering farmers, creating employment opportunities, and fostering community development.

What do you get

when you register with our help

Ready to Register your Company?

When you register your business with the help of Bright Advis, you also get a friend who advices, guides and helps you grow into a great business.

testimonials

What our clients say

Very structured service which did not delay the entire process as we were looking to open our company as soon as passible. Thank you for hassle free service.

Abhilash Yadav

From what we read online, it seemed like a long and lengthy process. But these guys made it look effortless. Worth it!

Rizwan

We had a smooth process. Thanks a lot Bright Advis! We want to continue our association for other areas as well, hope you support in the same manner.

Lalit Shah

Bright Advis helped us with all our doubts right from the beginning and incorporated our private limited company.

Anuj Tiwari

Why Bright Advis

There are many reasons why clients choose Bright Advis, but from our experience we have listed the four main reason why you should go with us.

Bright & Knowledgeable

Bright Advis delivers high quality financial services by a team of bright and knowledgeable experts.

Always happy to help

Bright Advis commit to provide dedicated support and assistance to our clients.

Professional & Approachable

We maintain a high level of professionalism while being easily approachable for our clients.

Easy & Quick

We focus on streamlining and simplifying the complex processes for our clients.

Checklist for Registration

This checklist includes everything that you would need to open a Producer Company. These are mandatory requirements.

Timeline

After consultation and review of required documents by a Bright Advis expert, the incorporation process takes between 7 to 10 working days.

Want to incorporate your Producer Company? Speak with an expert.

Frequently Asked Questions

What are the compliance requirements for a Producer Company?

Filing of annual returns and financial statements with the ROC
Holding annual general meetings.
Maintenance of proper books of accounts.
Conducting regular audits.

Who can register a producer company?

Any group of ten or more individuals who are engaged in producing primary produce can register a producer company.

Can a producer company be converted into a private limited company?

Yes, a Producer Company can be converted into a Private Limited Company if it meets the eligibility criteria and follows the conversion process as prescribed by the Companies Act.

What is the minimum capital requirement for a Producer Company?

The minimum capital requirement for a Producer Company is 5 lacs.

Producer Company Registration in India with Bright Advis

Starting a Farmer Producer Company (FPC) or producer company in India is an excellent step for farmers, artisans, and rural entrepreneurs who want to work collectively and strengthen their economic position. Bright Advis simplifies the entire producer company registration process and ensures full compliance with all government regulations.

In this detailed guide, we’ll explain everything you need to know about setting up producer companies, their benefits, eligibility, documents required, and more.

What is a Producer Company?

A producer company, also known as a Farmer Producer Organisation (FPO) or farmer company, is a special type of business entity formed by farmers, producers, or agriculturalists for production, harvesting, procurement, processing, marketing, and selling agricultural products.

The concept was introduced under the Companies Act, 1956 and continued under the Companies Act, 2013. It combines the cooperative framework with the legal identity and advantages of a private limited company to empower farmers and rural producers.

Objectives of Producer Companies

Production, harvesting, processing, pooling, marketing, and selling of members’ agricultural products
Import of goods or services for the benefit of members
Manufacturing and supplying machinery and equipment for agricultural activities
Providing technical assistance, consultancy, training, and R&D
Welfare activities for the members like insurance, credit facilities, and support services

Benefits of Registering Producer Companies

Limited Liability Protection: Members are not personally liable for company debts.
Government Subsidies and Schemes: Access to financial support for agricultural development.
Separate Legal Entity: Independent from its members with continuous existence.
Easy Access to Funding: Easier to raise capital through grants and loans.
Profit Sharing: Profits are distributed among members based on patronage.

Other benefits include:

Risk mitigation through collective action
Better bargaining power in the market
Access to facilities like storage, processing, and transportation
Empowering members through skill development and knowledge sharing

Eligibility Criteria for Producer Company Registration

Minimum 10 individuals (all must be primary producers) or 2 producer institutions
All members should be involved in farming, animal husbandry, horticulture, forestry, or related activities
The proposed company name must end with “Producer Company Limited”

Documents Required for Producer Company Registration

PAN and Aadhaar Card of all proposed directors and members
Address proof of the registered office (electricity bill/rent agreement)
Passport-sized photographs of directors
Digital Signature Certificates (DSC) for directors
Director Identification Number (DIN) application
Draft of Memorandum of Association (MoA) and Articles of Association (AoA)
Logo for farmer producer company (if available)

Step-by-Step Producer Company Registration Process

DSC and DIN Application: Obtain DSCs and DINs for all proposed directors.
Name Reservation: Reserve company name using the RUN service with “Producer Company Limited”.
Filing Incorporation Documents: Submit SPICe+ form, MoA, AoA, and declarations.
Certificate of Incorporation: Issued by Registrar of Companies (ROC).

Timeline: Typically takes 30–45 working days. Fees vary by share capital and other factors.

Post-Incorporation Compliance Requirements

Minimum 5 and maximum 15 directors
First Annual General Meeting (AGM) within 90 days
Maintain statutory registers and books of accounts
File annual returns (MGT-7) and financials (AOC-4) with ROC
Comply with loan, investment, and welfare provisions

Types of Producer Companies

Production Businesses: Engage in production and processing of agricultural produce
Marketing Businesses: Promote and market the produce
Technical Service Providers: Offer education, R&D, and training
Financial Businesses: Provide financial services to members
Infrastructure Development: Build and manage facilities for members

Example: A group of organic vegetable farmers forming a company to process, package, and market their produce together.

Comparison with Other Business Structures

Feature	Producer Company	Cooperative Society	Private Limited Company
Formation	Companies Act 2013	Cooperative Societies Act	Companies Act 2013
Members	Farmers/Producers	Open membership	Shareholders
Profit Sharing	Based on patronage	Limited dividends	Shareholding proportion
Legal Status	Separate legal entity	Separate legal entity	Separate legal entity
Governance	Board of Directors	Managing Committee	Board of Directors

Frequently Asked Questions (FAQs)

Q1. What is the main objective of a producer company?: To empower farmers and producers by pooling their resources for production, marketing, and welfare.
Q2. Who can become a member of a producer company?: Primary producers such as farmers, artisans, handloom weavers, fishermen, or producer institutions.
Q3. What is the minimum share capital required?: No specific minimum is mandated, but capital must be reasonable for the business.
Q4. Can a producer company accept deposits from the public?: No, only from registered members.
Q5. What tax benefits are available?: Agricultural income is exempt. Other agricultural-based exemptions may apply.
Q6. How is governance structured?: Managed by a board of 5–15 directors elected by members.
Q7. Can a producer company offer financial services?: Yes, within regulatory limits.
Q8. Can it be converted into a private limited company?: No, such conversion is not permitted.
Q9. What are the major compliances after registration?: AGMs, annual return filings, maintaining books, and following loan/investment rules.
Q10. How long does registration take?: About 30–45 working days.

Start Your Producer Company Registration with Bright Advis Today!

Bright Advis offers complete producer company registration services with professional support from start to finish. We understand the needs of farmers, artisans, and rural entrepreneurs, and we help bring their collective aspirations to life.

Our experts help set up your governance structure, determine minimum share capital, ensure compliance, and guide you through the Companies Act 2013.

We also assist with:

Market access challenges
Technology adoption
Financial management
Exploring export opportunities
Accessing government schemes

By partnering with Bright Advis, you’re taking a step toward rural empowerment and agricultural progress.

Contact Bright Advis today to start your journey and establish a thriving producer company in India!

Bought Together

There are many reasons why clients choose Bright Advis, but from our experience we have listed the four main reason why you should go with us.

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