Producer Company Registration

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The purpose of the Producer Company in India as specified in the companies act 1956, shall relate to all or any of the following: -

  • Processing including preserving, brewing, distilling, drying, venting, canning, and packaging of the product of its members ;
  • Production, pooling, procurement, collecting, grading, handling, selling, marketing, the export of primary products of the Members, or importing goods or services for their benefit.
  • Providing education on the principles of mutual assistance to its members and others ;
  • Generation, distribution, and transmission, of power, revitalization of land and water resources, their use, preservation, and communications related to the primary product;
  • Manufacture, sale or supply of equipment, machinery, or consumables mainly to its Members;
  • Providing technical services, training, consultancy services, research and development, and all other activities for the promotion of the interests of its Members
  • Promoting mutuality and mutual assistance technique;
  • Insurance of producers or their main product ;
  • Welfare measures or services for the benefit of Members as may be determined by the Board.


  • Step1 - Get DIN(Director Identification Number DIR 3 form) and DSC(Digital Signature Certificate) for the company directors, which is provided by the MCA(Ministry of Corporate Affairs) by giving details through a simple form on MeraLegal.
  • Step2 - Company name approval(Form no. INC 1): Before approval of the name, a company name must be allocated with the MCA so that nobody can use it, and it doesn’t match with existing companies. This process will be handled by MeraLegal.
  • Step3 - Registration, i.e., company incorporation by DIR 12,2; form number INC 7,8,10,9,22 at MCA with documents, and with the registrar of companies will be taken care of by us after the above-mentioned processes.


  • Identity proof of the director(PAN Card, Aadhar Card)
  • Electricity Bill
  • Address proof
  • Copy of rent agreement if any
  • Passport size photographs of directors
  • Property papers if any


  • Any 10 or more persons, each of them being a producer or
  • Any two or more Producer organizations, or
  • A combination of ten or more individuals and Producer organizations, wishing of creating a Producer Company having its objects defined
  • At least 5 and a maximum of 15 directors are required
  • Minimum capital of 5 lakh is required.

Benefits of Producer Company Registration

  • In contrast to a private limited company, a producer company in India can have an unlimited number of members.
  • Registrar of companies has control over the matters of union, merger, or division of a producer company while in case of the private limited company court has the power.
  • It can never be transformed into a public company. However, it can be transformed into a multi-state co-operative society.
  • A producer company has a distinct legal entity and offers the facilities of limited liability and constancy.
  • Producer companies provide high reliability as compared to that provided by unregistered organizations of agriculturists/farmers.
  • Changes in the Board of Management of a producer company can be made quickly just by filing a few easy forms with the ROC involved.
  • A registered producer company is completely allowed to receive deposits from or give loans to its agriculturist members at fair rates of interest.
  • Only an adequately registered producer company is allowed to sell or own a property in its name.
  • It is to be noted that since the IT Act does not offer any special advantage or privilege to Producer Companies as such, depending upon the type of agricultural activity, it carries on, some tax benefits can be used. For example, if green tea leaves are produced and sold directly without any further processing, the income obtained from such an activity is regarded as agricultural income under the IT Act. This income is 100 % tax-free, but if the green tea leaves are further processed, and tea is produced, only 60% of the income generated from this activity is considered as agricultural income, and the tax exclusion can be used only on the said 60% of such income. Thus, it is clear that the tax exclusion to a producer company based on the activity it carries on.

Frequently Asked Questions ?

At least five directors are required.

NO. It is an online process.

The minimum capital required to establish a producer company is 5 lakh.

To register producer company, follow the steps mentioned above.

To form a producer company, it takes around 35 to 40 days.

Yes. It is mandatory to audit books of a producer Company.