Producer Company Registration

Apply for Producer Company Registration with Swarit Advisors

In India, farmers are deprived of the latest technologies in the agricultural sector which result in the failure to produce crops due to which farmers have to face huge losses and more than 15% of farmers commit suicide in the country every year.

The Companies Act, 2013, defines a Producer Company and lays down rules for Producer Company Registration. Such companies, also known as a Farmer Producer Company, are involved in activities like procurement, harvesting, pooling, selling, marketing goods of the members.

How to apply for producer Company Registration?

A company must follow certain steps for a successful producer company registration. Register of Companies (ROC) evaluates the e-form that is submitted by the applicant and within 30 days after the submission of the documents, a Certificate of Incorporation (COI) is issued.

A company must follow certain steps for a successful producer company registration.Register of Companies (ROC) evaluates the e-form that is submitted by the applicant and within 30 days after the submission of the documents, a Certificate of Incorporation (COI) is issued.

  • Obtain Digital Signature Certificate

The first step in the registration process is acquiring DSC (Digital Signature Certificate) of the proposed directors. The digital signature is required to sign documents electronically.

  • Obtain DIN (Director Identification Number) of the Directors of the Company

The next step is to obtain DIN of the directors as well as the shareholders. DIN can be obtained directly through SPICE Form and there is no need to file a separate form.

  • Name Approval Application

Apply for the company’s name approval using the RUN (Reserve Unique Name) Service with the ROC (Registrar of Companies).

  • Incorporation Application

Lastly, the applicant applies for the company’s incorporation in the e-form SPICe-32 along with all the required documents. If the Registrar of Companies (ROC)approves the application and the documents, a Certificate of Incorporation is issued. The final name of the Producer Company must end with “Producer Limited Company”.

Loans offered in Farmer Producer Company 

Primary producers are individuals who are in constant need of financial assistance. Therefore, as per Companies Act, 2013, a provision was passed in order to help the members of a Producer Company, i.e. primary producers by granting them financial help in the form of loans.

The kinds of loans provided to the members of the producer companies, that they can benefit from are as follows –

  • NABARD Loan

National Bank for Agriculture and Rural Development(NABARD), assists the Producer Companies financially by offering them various financial assistance and support.

  • Credit facility

The credit facility is offered to the members of the company for a time period of six months and it must not exceed this time limit. Additionally, such facilities should mandatorily connect with the company’s business.

  • Loans & Advances

The primary producers of crops receive loans and advances against security. The loan is repayable within a certain duration of time stipulated which must not exceed seven years from the disbursement date of the loans and advances.

Mandatory requirements for Producer Company

  • In a Producer Company, only those individuals can participate in the activities of the company that are engaged in any activity concerned with primary production.
  • Producer Company members must necessarily be primary producers.
  • The liability of the producer company members will be limited up to the unpaid amount of the shares.
  • The name of the producer company shall end with "Producer Company Limited"
  • Producer Company is considered as a private limited company.
  • A Producer Company does not place a limit on the maximum number of members.

Advantages of Producer Company to the members

The members of the farmer company enjoy many advantages. Some of them are mentioned below –

  • Firstly, all the members of the Producer Company get a stipulated amount for the products supplied and accumulated which is administered by the directors.
  • The next step is when the members receive the pending value in cash or Equity shares or in any kind.
  • Additionally, the members of the company also receive bonus shares in an equal proportion to the shares held by every member.
  • Lastly, a surplus is provided to the members in the form of bonus for investment purposes.


Advantages of Farmer Producer Company Registration

Farmer Producer Company Registration comes with many benefits. After the company is registered according to the rules prescribed in the companies’ act, the Company enjoys many advantages. Some of them are as mentioned below –

  • Separate Legal Entity & Limited Liability

It gets the status of a separate legal entity with features like limited liability and imperishability.

  • High Credibility in the company

Governed under the Central Government, a Farmer Producer Company serves high credibility than those provided by the unregistered producer companies.

  • Ease of making changes in Management

Change in Management on the Board of the Producer Company can be easily carried out just by filing the recommended form with ROC.

  • Freedom in terms of property selling & owning

Proper registration of a Producer Company provides the right to own, sell or separate the property in its name.

Documents Required for Farmer Producer Company Registration

The following are to be submitted to obtain Producer Company Registration –

From the Directors and Shareholders

  • PAN Card or Passport or Election ID Card
  • Recent Bank Statement or Telephone or Mobile Bill
  • Voter's ID or Passport or Driver's License
  • Passport-sized photographs of all directors and shareholders

For Proposed Registered office (Residential or commercial)

  • Copy of any of the utility bills
  • Scanned copy of the Rent agreement along with the NOC from the owner
  • If the property is self-owned, then Property Papers must be submitted.



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