Producer Company

Published At: 30-Jul-2021


When a company is registered with MCA (Ministry of corporate Affairs) for the purpose of agricultural production and processing activities it is called Producers Company.

The major aim of the Producer Company is improvement in the standard of living, incomes and profit for the individuals. Also, it helps in the betterment of agricultural industry work by giving access to technological advancement and channelizing the agrarian market.  A Producer Company should be named using the following suffix “Producer Company Limited” appropriately indicating its status of Producer Company

The committee consists of at least 10 Producer, who will promote/ incorporate the Company. Promoters may be individual or producer institutes (minimum 2 institutes) and 5 directors (it should be individual only).  Generally, in most of the cases, Promoters and Directors are the same in Companies. 


If a company seeks to register itself to be a producer company, it must incorporated the following objectives:

  1. Harvesting, Grading, pooling, production, marketing and
  2. Selling, import/export of goods and agricultural needs and handling and several others.
  3. Activities mentioned above must be a part of working companies.
  4. Assessing and rendering education about agricultural terms to the members of the company.
  5. Providing insurance facilities to both producer and agricultural products so obtained.
  6. Mutual assistance to members also provides credit facilities to the members for carrying out various agricultural tasks.

Registration Process

The registration process of a Producer Company is quite simple for private limited companies.  It requires the below steps:


The government has come up with a plan of producer companies allowing farmers to grow and earn credits by setting up their own business.  Also, benefits like tax exemptions will be offered to the  agricultural activities leading to make it more simple and cheaper and bring enhancement in the income of small scale workers.  A producer company in India shall never become a public (or deemed public) limited company.

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