A Producer Company is a legal entity designed to benefit farmers, producers, and agricultural professionals. It allows them to work collectively, share resources, and enjoy the benefits of a corporate structure while focusing on agriculture, farming, or production activities. At CAPLUS, we specialize in registering and supporting Producer Companies across India.
What is a Producer Company?
A Producer Company is a type of company registered under the Companies Act, 2013, with the primary objective of producing, harvesting, procurement, grading, pooling, handling, marketing, or selling the goods or services of its members. It can also engage in activities such as education, technical services, welfare measures, and financial assistance for producers.
The members of a Producer Company are primarily farmers, artisans, or other producers who collaborate for mutual growth and economic benefit. This structure ensures better market access, improved supply chain management, and collective bargaining power for small-scale producers.
Key Features of a Producer Company>
Member-Based Structure: Only individuals or producer institutions can become members.
Primary Objective: Activities revolve around production, marketing, and distribution of agricultural or related goods.
Limited Liability: Members’ liability is limited to the extent of their shares.
Separate Legal Entity: A Producer Company is treated as a corporate entity with legal recognition.
Tax Benefits: Producer Companies enjoy specific tax exemptions, especially if they operate in agriculture-related sectors.
Benefits of Registering a Producer Company
Enhanced Market Reach
Collaborating under a Producer Company ensures better market access for small-scale farmers and producers.
Collective Bargaining
Producers can negotiate better deals for procurement and sale of goods.
Financial Assistance
Producer Companies can avail of government subsidies, grants, and loans designed for the agricultural sector.
Professional Management
Corporate governance practices improve operational efficiency and transparency.
Limited Liability
Members are protected from personal liability beyond their shareholding.
Tax Advantages
Certain agricultural activities are exempt from income tax.
Minimum Members: At least 10 individuals or two producer institutions.
Activities: The primary activities must be related to agriculture, farming, or allied sectors.
Directors: A minimum of 5 and a maximum of 15 directors are required.
Capital Requirements: The company must have a minimum paid-up share capital of INR 5 lakh.
Process of Registering a Producer Company with CAPLUS
At CAPLUS, we simplify the registration process for Producer Companies. Here’s how we do it:
Our experts provide a free consultation to understand your requirements and objectives for the Producer Company.
We assist in reserving a unique name for your company through the Ministry of Corporate Affairs (MCA) portal.
We guide you through the preparation and submission of essential documents, including:
Identity proof of members and directors (Aadhaar, PAN)
Address proof (Electricity bill, rent agreement, etc.)
Passport-sized photographs
Memorandum of Association (MOA) and Articles of Association (AOA)
Declaration of compliance
We help obtain DSCs and DINs for all directors.
We file the incorporation forms (SPICe+) with the Registrar of Companies (ROC) on your behalf.
Once the documents are verified, the ROC issues the Certificate of Incorporation. Your Producer Company is now officially registered!
Post-Registration Compliance for Producer Companies
Why Choose CAPLUS for Producer Company Registration?
Expert Guidance: Our team of experts ensures a hassle-free registration process.
Affordable Packages: Transparent pricing with no hidden charges.
Compliance Support: Ongoing support to help you meet all legal obligations.
Quick Turnaround: Get your Producer Company registered in a few weeks.
Customer-Centric Approach: Tailored solutions to meet your specific needs.
Contact CAPLUS Today!
If you’re ready to register your Producer Company or have any questions, CAPLUS is here to help. As a trusted partner we are committed to empowering producers with efficient and affordable services.
Get in touch now for a free consultation!Producer Companies
What is the minimum capital requirement for a Producer Company?
Can a Producer Company have corporate members?
Are Producer Companies eligible for government subsidies?
Is it mandatory to conduct an AGM for a Producer Company?
What are the tax benefits for Producer Companies?
How long does it take to register a Producer Company?
Can CAPLUS help with compliance after registration?