What is a Producer Company?
A Producer Company is a legally recognized body formed under the Companies Act 2013 for farmers, agriculturists, or producers. It allows them to work collectively in the areas of production, harvesting, processing, procurement, marketing, and export of primary produce.
Benefits of Producer Company
- Separate legal entity with limited liability protection
- Better credit facility and government support
- Collective decision making for better income
- Ideal for farmers, producers & artisans
- Recognition under Companies Act, 2013
Eligibility Criteria
- Minimum 10 producers (individuals) required
- Minimum paid-up capital of ₹5 lakh
- Two directors must be appointed
- Only 'primary producers' or institutions can form it
Registration Process
- Step 1: Obtain DSC & DIN for directors
- Step 2: Choose unique company name & apply via RUN
- Step 3: Draft MOA, AOA, and submit SPICe+ form
- Step 4: MCA issues Certificate of Incorporation
- Step 5: PAN, TAN, GST, Bank Account setup
Frequently Asked Questions
- Q: Is a Producer Company a private company?
A: Yes, it’s treated as a private limited company but governed under special provisions. - Q: Who can form a Producer Company?
A: Only farmers, producers, or institutions with common interests. - Q: Is it eligible for subsidies?
A: Yes, NABARD and other schemes provide funding support. - Q: Can it export goods?
A: Yes, it can export agricultural or processed produce with proper licenses.