Producer Company
Registration for Farmers
& Agri Collectives

What is a Producer Company?

A Producer Company is a unique corporate structure created specifically for primary producers — farmers, artisans, fishermen, dairy workers, and other people engaged in agricultural or allied production activities. It is incorporated under Section 465(1) of the Companies Act, 2013 and is the legal successor to the earlier cooperative company provisions of the Companies Act, 1956.

It combines the collective spirit of a cooperative society with the legal rigour and credibility of a Private Limited Company. Members pool their produce, resources, and market access — while enjoying limited liability protection, transparent governance, and eligibility for major government funding schemes.

The company's name must always end with the words "Producer Company Limited" — distinguishing it from all other corporate entities in India.

Who Can Be a Member of a Producer Company?

Membership is restricted — every member must be a primary producer. This is the most important legal requirement that distinguishes a Producer Company from all other company types. The ROC scrutinises member eligibility during registration.

What Can a Producer Company Do?

A Producer Company's activities must relate directly to its members' produce. The MOA object clause must cover the activities the company will undertake. TaxClue drafts a comprehensive object clause covering all permitted activities.

Government Schemes Available to Producer Companies

Registration as a Producer Company unlocks access to some of India's most valuable agricultural funding programmes. TaxClue advises on eligibility and assists with applications immediately after incorporation.

Who Should Form a Producer Company?

Advantages & Disadvantages

Step-by-Step Registration Process

TaxClue manages the entire process from your initial group meeting to a fully incorporated, scheme-ready Producer Company:

• 1

  Member Verification & Eligibility Check

  TaxClue verifies that all proposed members qualify as primary producers. We review available documents (land records, KCC, PM-KISAN, livestock certificates, activity bills) and confirm the minimum 10 individual producers / 2 producer institutions requirement before filing.

  Day 1–2
• 2

  DSC & DIN for All Directors (Min. 5)

  Class-3 Digital Signature Certificates and Director Identification Numbers for all 5+ proposed directors — who must themselves be producer members. At least one director must be an Indian resident. TaxClue coordinates DSC procurement for all directors simultaneously.

  MCA Portal · Day 2–4
• 3

  Name Reservation — "Producer Company Limited"

  The company name must end with the words "Producer Company Limited" (e.g., "Vidarbha Organic Farmers Producer Company Limited"). TaxClue checks MCA availability and trademark conflicts, then files the RUN application or SPICe+ Part A with 2 name choices.

  RUN / SPICe+ Part A · Day 3–5
• 4

  Draft MOA & AOA for Producer Company

  TaxClue drafts a comprehensive MOA covering all permitted producer activities — production, harvesting, processing, procurement, grading, pooling, marketing, export, input supply, training, and member welfare. The AOA covers Board composition (min. 5 directors), General Body meetings, AGM, patronage bonus distribution, and member admission/exit.

  Legal Drafting · Day 4–6
• 5

  SPICe+ Part B + AGILE-PRO-S Filing

  TaxClue files the full incorporation form with MCA. For Producer Companies, the ROC carefully reviews member eligibility documentation — TaxClue prepares this with extra care to avoid queries or rejections. AGILE-PRO-S simultaneously applies for company PAN, TAN, ESIC, and EPFO.

  MCA / ROC · Day 5–9
• 6

  Certificate of Incorporation Issued ✅

  ROC issues the Certificate of Incorporation with your CIN. Your company is officially a registered Producer Company under the Companies Act. PAN and TAN are allotted. TaxClue then prepares share certificates for all 10+ members and the initial board meeting agenda.

  Day 8–13
• 7

  Post-Incorporation Compliances

  TaxClue assists with: INC-20A (Commencement of Business, within 180 days), first Auditor appointment (within 30 days), share certificates to all members (within 60 days), opening a current bank account, first Board Meeting, and maintenance of statutory registers including the Register of Members.

  Companies Act 2013
• 8

  NABARD / SFAC Scheme Registration & GeM

  TaxClue advises on applying for NABARD's 10,000 FPO scheme (via CBBO or NABARD directly), SFAC equity grant, PM-FME subsidy, and GeM seller registration — getting your Producer Company's funding pipeline active immediately after incorporation.

  Schemes & Funding · Day 14+

What You Get with TaxClue Registration

Documents Needed for Registration

Producer Company registration requires documents for all 5+ directors and all 10+ producer members — plus proof of producer activity which is unique to this structure. TaxClue provides a detailed, state-specific checklist after consultation.

For All Directors & Members

For Registered Office

Annual Compliance Requirements

A Producer Company must comply with the same annual filing requirements as a Private Limited Company — plus some additional producer-specific obligations. Non-compliance can jeopardise eligibility for NABARD/SFAC grants.

Why Choose TaxClue for Producer Company Registration?

Frequently Asked Questions

• What is the minimum number of members to form a Producer Company?+
  A Producer Company requires either: (a) a minimum of 10 individual producers, or (b) a minimum of 2 producer institutions (such as existing cooperatives or other Producer Companies), or (c) a combination of both. Additionally, a minimum of 5 directors is required — who must themselves be producer members. There is no upper limit on the number of members. Many Producer Companies have hundreds or even thousands of members.
• Can non-farmers or investors become members of a Producer Company?+
  No. This is the most important restriction on a Producer Company. Only primary producers — individuals directly engaged in agricultural production, dairy, fishery, handcraft, or other allied activities — can become members. Traders, investors, agri-businesses, and non-producers cannot become members. This is what distinguishes a Producer Company from a regular Pvt. Ltd. Company. If you need a structure where investors and non-producers can participate, a Private Limited Company is more appropriate.
• How is profit distributed in a Producer Company?+
  Profit distribution in a Producer Company is different from regular companies. Instead of dividends, profits are distributed as a "patronage bonus" — calculated proportionally based on each member's contribution of produce or participation in the company's activities. A member who contributed more produce gets a proportionally higher patronage bonus. The Board of Directors decides the bonus amount after statutory reserve allocation. This ensures that members who participate more are rewarded more, maintaining the cooperative spirit within a corporate structure.
• What is the NABARD FPO promotion scheme and how does a Producer Company benefit?+

  Under the Government of India's scheme to form and promote 10,000 FPOs (Farmer Producer Organisations), registered Producer Companies can receive substantial support:

  • Equity grant: ₹15 lakh per FPO over 3 years (matching grant from SFAC or NABARD)
  • Credit guarantee: Cover for loans up to ₹2 crore from banks, reducing interest rates
  • Handholding support: 5 years of technical and management support from Cluster Based Business Organisations (CBBOs)
  • Market linkage: Connections to government procurement agencies, NAFED, and export agencies

  To be eligible, the Producer Company must be registered with MCA and demonstrate active member participation. TaxClue advises on eligibility and connects you with the appropriate NABARD district office or CBBO after incorporation.

• How long does Producer Company registration take?+
  Producer Company registration typically takes 10–15 working days with complete documents. The timeline: DSC/DIN for directors (2–4 days), Name reservation (3–5 days), MOA/AOA drafting (2–3 days), SPICe+ filing and ROC approval (5–7 days). The main delay factor is collecting producer activity proof documents from all 10+ members and 5+ directors. TaxClue provides a clear checklist upfront to avoid back-and-forth. With documents ready, we can file within 1 working day.
• Can a Producer Company sell on the GeM portal and export produce?+
  Yes, on both counts. A registered Producer Company can: (1) Register as a seller on the Government e-Marketplace (GeM portal) and sell agri-produce, processed food, handicrafts, and other products directly to central and state government departments — which have a procurement preference for FPOs/Producer Companies. (2) Export produce internationally after obtaining an Import Export Code (IEC) from DGFT and relevant product certifications (APEDA for agricultural exports, FSSAI for food products). TaxClue handles GeM seller registration and advises on export readiness post-incorporation.
• Is agricultural income of a Producer Company exempt from income tax?+
  Agricultural income in India is generally exempt from income tax under Section 10(1) of the Income Tax Act. For Producer Companies, income arising directly from agricultural produce — growing, processing, and marketing of crops, dairy, fisheries, etc. — qualifies as agricultural income and is thus exempt. However, income from non-agricultural activities (trading in non-produce goods, services, etc.) is taxable. The distinction can be complex; TaxClue's CA team advises on proper income classification and ITR-6 filing to maximise the agricultural income exemption for your specific business model.

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