A Producer Company is a legally recognized business entity formed by farmers, artisans, or producers to improve income, reduce dependency on intermediaries, and facilitate better market access. It combines the benefits of a cooperative society and a private limited company, allowing producers to engage in activities like production, procurement, harvesting, grading, pooling, and marketing of goods and services.

Key Features of a Producer Company

• Limited Liability: Members are liable only to the extent of their shareholding.
• Separate Legal Entity: The company exists independently of its members and can own assets, enter contracts, and conduct business.
• Minimum 10 Members & 5 Directors: A Producer Company requires at least 10 individual producers or 2 producer institutions, with a minimum of 5 directors.
• No Maximum Limit on Members: Unlike private limited companies, a Producer Company can have an unlimited number of members.
• Profit Sharing: Members share profits in proportion to their participation in the company’s activities.
• Governed by the Companies Act, 2013: Producer Companies function under the regulatory framework of the Ministry of Corporate Affairs (MCA).

How to Register a Producer Company in India?

Step 1: Choose a Unique Name for the Company

• Select a name that reflects the business and complies with MCA guidelines.
• Check availability using the RUN (Reserve Unique Name) service on the MCA portal.

Step 2: Obtain Digital Signature Certificate (DSC)

• All directors must obtain a Digital Signature Certificate (DSC) to sign electronic documents.
• DSC is necessary for online filing of incorporation documents.

Step 3: Obtain Director Identification Number (DIN)

• Every director must apply for a Director Identification Number (DIN) from the MCA.
• DIN is mandatory for company registration and governance.

Step 4: Draft the Memorandum of Association (MOA) & Articles of Association (AOA)

• Memorandum of Association (MOA): Defines the company’s objectives and scope of activities.
• Articles of Association (AOA): Specifies internal rules, governance, and operational guidelines.

Step 5: Register the Producer Company with MCA

• File the SPICe+ form (Simplified Proforma for Incorporating Company Electronically) on the MCA portal.
• Submit required documents, including MOA, AOA, identity proof, address proof, and registered office details.
• Upon approval, the Certificate of Incorporation (COI) is issued.

Step 6: Apply for PAN and TAN

• After incorporation, apply for the company’s Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) for tax compliance.

Step 7: Open a Business Bank Account

• Open a current bank account in the company’s name using the Certificate of Incorporation, PAN, and other documents.

Step 8: Maintain Books of Accounts & Compliance

• Keep records of financial transactions, including income, expenses, and capital investments.
• File Income Tax Returns (ITR) and comply with GST regulations (if applicable).
• Conduct annual audits and submit financial reports to MCA.