FARMER PRODUCER COMPANY REGISTRATION, Agriculture is the backbone of Indian society. It goes about as an essential wellspring of livelihood for about 58% of India’s populace. In India, the lion’s share of farmers is little and minimal who develop on little plots of land. Their income is not exactly their utilization use because of resulting dry seasons and rainstorm disappointments, following the disappointment of yields. Different limitations like ostensible market data, high exchange costs, obstructed admittance to credits, haul loan fees on advances add to the farmer’s deficit, subsequently diminishing their size of production. Moreover, most farmers in India work in segregation.

For a long time, efforts and approaches have been made to better the economic position of the farmer, as they are the primary producers, but the income generated to them is much less than the intermediaries who work in the same field. 

An expert committee on the economic well-being and conditions of the farmers was constituted under the chairmanship of Y.K ALAGH, a noted economist and former Union Minister in Govt of India. The expert committee recommended the introduction of the concept of ‘Producer’s Company’. Likewise, the Indian Government inserted “PART 9-A” in the Companies Act,1956, which paved the way for the incorporation of the PRODUCER COMPANY. Part 9A has 46 sections (581A to 581Z and 581ZA to 581ZT) dealing with the provisions of the Producer companies. 


FARMER PRODUCER COMPANY REGISTRATION, “Producer Company” means a body corporate having objects or activities specified in section 581B and registered as Producer Company under the Companies Act, 1956.

We can understand that a Producer Company is : 

  • A hybrid of a private company and a cooperative society.
  • It has benefits of a cooperative society & efficiency of a private company.
  • Works for the benefits of the primary producers i.e., Farmers. 
  • It aims to increase the economic well-being of the Farmers.

For more information, please contact us on or call us Mb. No. 85100 58386 or 9310 717274.


1. Only individuals occupied in an activity or movement associated with or identified with essential primary produce can take Part in the possession/ ownership. 

2. The members of the company must be the Primary producers. 

3. The Name of the Company shall end with “Producer Company Limited.”

4. On registration of the company, the producer company shall become as if it is a Private Limited Company only for the need of application of law and administration of the company and hence, they have limited liability to the extent of the amount of unpaid on shares held by them.

5. It offers a legal and administrative structure to cooperatives which have the capacity for maker-possessed ventures to contend in present-day markets. Besides, a helpful society can be changed over into a maker organization if 2/3rd 

of its individuals vote for a resolution with that effect. This change is simply deliberate, and the individuals from the organization must be the primary agricultural producers. 

6. There are a maximum of 50 members in the company and should not get exceeded.

7.  Share capital of a Producer Company shall consist of equity shares only.

8. Each Producer Company shall have 5-15 Directors.


1. The individuals from the maker organization at first will get the incentive for the produce pooled and provided as dictated by the Directors. This sum will be given out later as money/kind/equity shares.

2. The Company Members will receive the bonus shares in the same ratio to the shares held by them. 

3. Patronage bonus is also provided, which is a sign of surplus income. 

4. A Producer organization offers greater validity/credit to the farmers/members when contrasted with other unregistered associations of agriculturists and farmers.

5. A Producer Company offers limited liability to its members as it is a separate legal entity.

6. It has an easy registration process as well as management. 

7. A registered Farmer Company has the right to buy and sell property in its name. 

8. Equal voting rights are given to each member of the Producer Company.


The following kind of producers can register and incorporate a Producer Company Limited :

  • Ten or more producers (individuals);
  • Two or more producer institutions;
  • Combination of the above-stated kinds.

When registration is done under Section 581 C (1), the Producer Company will become a corporate body as if it is a ‘private limited company’ to which the provisions contained in this Part apply.


1. Obtaining Digital Signature Certificate(DSC) from all of the Directors constitutes the first step of registration of a producer company. The documents required for obtaining a DSC are:

  • PAN Card of the Director
  • Aadhar card of the Director
  • Photo, email, and contact number

2. Once the DSC is obtained, then obtaining Director Identification Number (DIN) is the next step. It can be done by filing a form named ‘DIR-3’, with self-attested photo ID, Address proof, and a photograph. 

3. The next step is to finalize the Name of the Company, the name must contain the words,’ Producer Company Limited’. A form named ‘INC-1’ to the Registrar of Companies (ROC) has to be filled by giving Six names in order of preference, along with their meaning or what they signify about. 

4. Thereafter, when the name has been approved by the Registrar of companies, the following documents have to comply:

  • The objectives of the producer company must be drafted and incorporated in the Memorandum of Association (MOA).
  • The by-laws of the company are incorporated in the Articles of Association.
  • Professional declaration is provided in the format of Form INC-8.
  • An affidavit, signed by all the subscribers of the proposed Producer company declaring their legal competency to act as scribers. 
  • If the registered office is leased, then the lease agreement has to b attached, and if owned, then owner consent in the form of NOC and Utility bill is required.
  • The Directors will present their consent to act through Forms DIR-1 and DIR-8.

5. Each drafted document is attached to Form INC-7, INC-22 and DIR-12 uploaded to the ROC website. After verification, the Registrar will issue the Certificate of Incorporation.

For more information, please contact us on or call us Mb. No. 85100 58386 or 9310 717274.


FARMER PRODUCER COMPANY REGISTRATION, As referenced over, the Producer Company comprises of people who are essentially primary agricultural producers, and subsequently, are needing monetary help every once in a while. Consequently, an extraordinary arrangement under the organizations acts 1956 was passed for offering advances to maker individuals. A Producer Company can give monetary help to its individuals through:

1. Credit Facility: It is available to every member of the Producer Company for a period not exceeding 6 months.

2. Loans and Advances: They are available to the individual members of the producer company against the ‘Security, repayable within a period not exceeding 7 years from the date of disbursement of such loans or advances.

3. NABARD loan: NABARD offers help and monetary help to address the issues of Producer Companies. In 2011, NABARD set up a Rs. 50 crore Producer Organisation Development Fund (PODF), out of its working excess.


1. Section 581E elucidates the advantages accessible to individuals. Subject to arrangements made in the article, each Part will at first get just such incentive for the products or items pooled and provided, and the retained cost might be dispensed later in real money or in-kind or by assignment of value shares, with respect to the products provided to the organization during the monetary year. The degree and way of the equivalent are to be chosen by the board.

2. Segment 581A(n) depicts retained cost as a component of the cost due and payable for products provided by any part to the maker organization and as retained by the organization for installment on a resulting date.

3. A member will get just a restricted profit from a premise of offer capital contributed. Provisions of Section 581E(2) states that each such Part might be apportioned extra offers as per Section 581ZJ. Segment 581ZJ endorses the issue of extra, heaps of the board, and passing of goals in a regular gathering. Such reward share will be given by capitalization of sums from general stores in relation to shares held by individuals.

4. Any excess, staying subsequent to making arrangement for the installment of restricted return and assets alluded to in Section 581ZI, might be dispersed as support reward among the individuals. Area 581ZI explains that each maker organization will keep an overall hold in each monetary year. Segment 581A(i) characterizes support reward as installments made by a maker organization out of its overflow pay to the individuals in relation to their separate support.


FARMER PRODUCER COMPANY REGISTRATION, As of late, the cabinet endorsed the companies amendment bill, 2020. In the CLC report, the maker organizations are characterized as a body corporate involving ranchers and agriculturalists who work in participation with one another to advance better ways of life and gain simpler admittance to credit, innovation, market, and so on 

Besides, the bill additionally assumes the inclusion of Part XXIA in the demonstration. The section will give a structure to order of maker organizations, and relaxations and advantages stretched out thereto like the 1956 demonstration.

Producer Companies are an incredible idea to prepare farmers together, take out mediators, with more prominent market reasonability and dealing power. It can possibly change Indian horticulture. What has changed is that the public authority has begun regarding horticulture as a business[11], giving credits, planning plans. These aides inspire underestimated ranchers. Organizations like AMUL, Sahyadri ranches, Mahindra Agribusiness, and so on have had colossal achievements in the field of horticulture as maker organizations. With the most recent plan as reported in the current year’s financial plan, it will undoubtedly increment.

For more information, please contact us on or call us Mb. No. 85100 58386 or 9310 717274.

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