Rules 1 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Companies (Producer Companies) Rules, 2021 are a short set of five rules. They apply to a Producer Company, borrow the Incorporation Rules for shifting a registered office from one State to another, and list the places where a Producer Company may invest money from its general reserves. They are stated as amended up to the rules as notified, dated 11 February 2021 in the MCA e-book, with no amendment listed there; later amendments should be checked.
The Rules apply to a Producer Company as referred to in section 378A, clause (I), and came into force on the date of publication in the Official Gazette. A Producer Company that wants to move its registered office from one State to another follows rules 27, 30 and 31 of the Companies (Incorporation) Rules, 2014, including the forms stated there. It must invest money from and out of its general reserves only in the six kinds of investment listed in rule 5, alone or in combination.
Why the set is short
The main law for these companies is in the Companies Act, 2013 itself (sections 378A to 378ZU). These Rules fill only two gaps: the procedure for changing State, and the permitted investments of general reserves. If you want the Act's text on definitions, see Section 378A of the Companies Act, 2013. For the Act's rules on donations, general reserves and bonus shares, see Sections 378ZH to 378ZJ, and for rule-making and overriding effect see Sections 378ZQ to 378ZU.
For farmer groups and other producers forming or managing a Producer Company, our producer company registration service covers incorporation and the ongoing steps.
Rule 1: short title and commencement
1(1). The rules may be called the Producer Companies Rules, 2021. 1(2). They came into force on the date of their publication in the Official Gazette. The rules are dated 11 February 2021, and the rule itself prints no separate commencement date.
Rule 2: applicability
The rules apply to a Producer Company as referred to in clause (I) of section 378A. That is the whole rule. It means these rules are not for ordinary companies, co-operative societies or other entities; they are for the company type the Act defines in that clause.
Rule 3: definitions
3(1) defines three terms:
- Act means the Companies Act, 2013 (18 of 2013);
- section means a section of the Act; and
- co-operative society means a society registered or deemed to be registered under any law relating to co-operative societies for the time being in force in any State.
3(2). Words and expressions used but not defined in these rules, and defined in the Act or in the Companies (Specification of Definitions Details) Rules, 2014, have the same meanings as in the Act or those rules. The defined term "co-operative society" matters because rule 5 lets a Producer Company invest in co-operative societies and co-operative banks.
Rule 4: shifting the registered office from one State to another
Rules 27, 30 and 31 of the Companies (Incorporation) Rules, 2014, including the forms stated in them, apply for the purpose of changing the place of the registered office of a Producer Company from one State to another. The rule does not copy their steps or forms. A Producer Company therefore reads those three Incorporation Rules and uses the forms they name.
Rule 30 of the Incorporation Rules is explained in Rule 30 of the Incorporation Rules: shifting from one State to another; the same-State position is in Rule 28. Rule 28 is not among the rules this rule applies, so it should not be assumed to govern a move between States. Note that rule 4 lists rules 27, 30 and 31, so rule 30 alone is not the whole procedure; the other two must be read too.
For a move between States, a Producer Company can also look at our change of registered office service.
Rule 5: investment of general reserves
A Producer Company makes investments from and out of its general reserves in any one or a combination of the following:
- (a) approved securities, fixed deposits, units and bonds issued by the Central Government, State Governments, co-operative societies or a scheduled bank; or
- (b) a co-operative bank, State co-operative bank, co-operative land development bank or Central co-operative bank; or
- (c) any other scheduled bank; or
- (d) any of the securities specified in section 20 of the Indian Trusts Act, 1882 (2 of 1882); or
- (e) the shares or securities of any other inter-State co-operative society or any co-operative society; or
- (f) the shares, securities or assets of public financial institutions specified under clause (72) of section 2 of the Act.
Clause (d) points to an older statute; the securities are those specified there, and the reader should check that text and its current form before relying on it.
Example. Greenfield Millets Producer Company Ltd, with its registered office in one State, has a general reserve. The board wants to place part in a fixed deposit with a scheduled bank and part in units issued by the Central Government. Both are permitted under clause (a) or (c), and the rule allows a mix. A proposal to buy shares in a listed trading company would not fit any of the six heads as printed. Separately, when the company decides to move its registered office to another State, it follows rules 27, 30 and 31 of the Incorporation Rules and the forms there.
Rules at a glance
| Rule | Subject | What it says | Period or form as printed |
|---|---|---|---|
| 1 | Short title, commencement | Producer Companies Rules, 2021; in force on Gazette publication | None |
| 2 | Applicability | Applies to a Producer Company under section 378A clause (I) | None |
| 3 | Definitions | Act, section, co-operative society; other words as in the Act | None |
| 4 | Shifting between States | Incorporation Rules 27, 30 and 31 apply, including the forms there | Forms stated in those rules |
| 5 | General reserves | Investment in listed categories (a) to (f), alone or combined | None |
Need help with a producer company?
Shifting a registered office between States and deciding where reserves may be invested both need the rules read alongside the Act and the company's own articles. If you are setting up or running a Producer Company, speak to us about producer company registration and the compliance that follows.
Key takeaways
- The rules apply only to a Producer Company as referred to in section 378A, clause (I).
- Moving the registered office from one State to another follows rules 27, 30 and 31 of the Incorporation Rules and their forms.
- General reserves can be invested only in the six heads of rule 5, alone or in combination.
- "Co-operative society" is defined by reference to State co-operative law.
- Rule 5(d) refers to section 20 of the Indian Trusts Act, 1882; check that text before relying on it.
Read next
- Rule 30 of the Incorporation Rules: shifting the registered office from one State to another
- Rules 1–7 of the Miscellaneous Rules: dormant company status
- Rules 1–3 of the Removal of Names Rules: strike off by the Registrar
- Section 378A: definitions for producer companies
Disclaimer: Based on the Companies Act, 2013 rules named above as consolidated in the MCA e-book (consulted on 3 October 2026), with the later notifications the article names. Later amendments, fees, forms and the Companies Act, 2013 provisions referred to should be checked. This article is general information, not legal advice; check the official text before acting.