Producer Company

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A producer organisation is made up of primary producers such as farmers, fishermen, weavers, milk producers, and craftsmen, among others. A Producer Company may also be a cooperative society in which all of the members-farmers share in the income and benefits.

What is a Producer Company?
Producer Company means a person engaged in any activity connected with any type of primary produce. 
As mentioned under Section 581B of company law "Producer Company" means a body corporate having objects or activities; This section further states that “Any ten or more individuals, each of them being a producer or any two or more Producer institutions, or a combination of ten or more individuals and Producer institutions, desirous of forming a Producer Company having its objects specified in section 581B and otherwise complying with the requirements of this Part and the provisions of this Act in respect of registration, may form an incorporated Company as a Producer Company under this Act.”
How to register a Producer Company?
  • Obtain digital signature certificates (DSC) and director's identification numbers (DIN) from all directors, together with self-attested copies of documents such as PAN cards, Aadhaar cards, and contact information.
  • Application for approval of name by filling FORM-1A and submitting it to the RoC along with the required fee.
  • Submission of forms, such as the MOA to integrate the company's purposes and the amount of share capital to be registered, and the AOA to contain the company's by-laws.
  • Following the issuance of the certificate, the company will become a legal entity, similar to a private limited company. 
What are the features of the Producer Company?
  • Allows farmer cooperatives to function as a corporate entity.
  • The objective of the Producer Company is production, harvesting, procurement, pooling, grading, marketing, selling and import/export of primary produce.
  • Manufacture or sale of machinery
  • Promoting techniques of mutual assistance
  • Offering technical services, training, R&D for the promotion of interests of members
What are the Advantages of a Producer Company?
A producer company has a minimum number of five directors and the maximum number is 15 directors.
Members will receive a value for the product or products supplied as determined by the Director.
Members of Producer Company are also eligible to get the financial assistance by way of credit facility.
Members can have bonus shares in proportion to the amount held by them.
What are the disadvantages of a Producer Company?
The producer company faces a problem in terms of capital as they are not capitalist.
One person in this company cannot make his own decision without the consent of others.

Required Documents

Acceptable DocumentDocument TypeAdditional Details
Contact details..
PAN Card of Director 1..
Email ID..
Scanned Photograph..
Aadhaar Card of the Director ..


You Ask, We Answer

Designate director shall hold office for a minimum of one year and maximum is for 5 years.
The formation of the Producer Company usually takes 35-40 working days.
A minimum of 5 directors is necessary for the registration of a Producer Company, with a maximum of 15 directors.
A minimum authorised capital of Rs. 5 lakhs is required for the foundation of a Producer Company.
Producer Company can be formed by any 10 or more producers or individuals. Also there is no limit on the maximum number of members.

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