Producer Company

Aimed at empowering farmers and farming, producer companies are those registered with an objective of production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary production of the Members or import of goods or services for their benefit.

Over 85% of the Farmers in India are small and marginal farmers with land holdings of less than 2 hectares. This fragmentation in farmers and farmlands, leads to disorganization and it is not viable for Indian farmers to adopt the latest technologies. By the organization of these farmers into producer companies, economies of scale can be unlocked and the livelihood of farmers can be improved. Thus the concept of producer company is aimed at empowering farmers by creating clusters of farmers organized as a Producer Company.A producer company is registered with ten or more member being producers; or any two or more producer institutions; or its combination.


Distinct Establishment

Being a separate legal entity in the eyes of law, a production company has a wide legal capacity and can own property and incur debts. The members of a producer company have no liability to the creditors of a company for such debts.The assets, liabilities, rights, debts and privileges shall vest in the company. The company can deal in its own name and hold the properties, too. The change in members or the directors neither affects its existence nor the assets & liabilities or rights & obligations.

Membership Benefits

Initially, only the value of the product as determined by the Board is received by all the members. Lateron, the price is disbursed in cash or by allotment of equity shares. The members are eligible for both limited return and alloted bonus shares. Surplus can also be disbursed as patronage bonus.

Uninterrupted Existence

Aproducer Company is an everlasting firm till it is legally dissolved. It is not affected by the death or departure of any of the partners.

Special User Rights

The active members of the producer company may enjoy special user rights if provided in the AoA of the company. The company may issue appropriate instruments to active members in respect of such rights. The special use rights refer to any right relating to the supply of additional products by the active Member or any other right relating to his produce.

Limited Liability of Owners

The members and the producer institutions have limited liability towards the debts and obligations of the company. Their personal assets remain unaffected in any case of loss or winding up. With assurance to limited liability, the producers can invest with lower risk into such businesses.

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Documents Required


Identity Proof

PAN Card of shareholders and Directors. Foreign nationals must provide a notarised copy of valid passport.


Address Proof

Passport, Driver’s License, Aadhar and Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholders and Directors. The two required documents must not be 2 months old.


Business Address Proof

Rental Agreement or Sale Deed and Latest Electricity Bill/ Telephone Bill, Property Tax Receipts of the registered office address.


NOC from owner

No Objection Certificate to be obtained from the owner(s) of registered office


Signed Incorporation Documents

Signed Digital Signature Application Documents in Hard Copy. Other Incorporation Documents signed and uploaded as soft copy.



In case of NRI or Foreign National, documents of the partner must be notarized or apostilled.

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