How many people are required to form Producer Company?

Minimum five Directors and ten Members are required to agreeing for subscription of shares of the Company who can be individuals or producer institutions or combination thereof.

Can a Director or Shareholder be a same person?

Yes, a Director of the person can also become a shareholder and vice versa as a Company is a Separate Legal Entity that means director of the company and shareholder of the company can be the same person.

What is the minimum capital requirement to form a Producer Company?

There is absolutely no minimum capital required to form a producer company under law, but generally it requires an authorized minimum capital of Rs. 5 Lakhs to start operations smoothly.

What are the activities allowed for Producer Company?

Activities include production, harvesting, processing, procurement, grading, pooling, handling, marketing, selling, export of primary produce, rendering technical services, and promoting mutual assistance.

What is the maximum time period to deposit the money for share agreed to be subscribed by the First Members?

A Member is required to deposit the money in the bank account at the earliest and file the form for commencement of company within 180 days from the date of incorporation.

Can the money deposited in bank account as subscription money be withdrawn?

No, the money deposited in bank on behalf of company cannot be withdrawn but can be used by the Company for official purpose like for paying salary to staff and employees, other administrative expenses etc.

Whether it is necessary to have a PAN Card?

Yes, for Indian nationals becoming a Director in a Company it is mandatory to have a PAN Card and Passport is need in case of Foreign Nationals.

What is Company Registration Certificate?

It is the documentary proof evidencing that the Company has been registered and having its unique identification number as Corporate Identification Number (CIN).

Can I provide the residential place for registered office of the company?

Yes, you can register a Producer Company at a commercial or residential place by providing the documents as specified like NOC and Utility bill.

What are the Annual Statutory Compliance requirements to be complied by a Producer Company?

The First Annual General Meeting shall be conducted within 90 days from the date of incorporation. It must hold an AGM each year and file proceedings, Directors Report, audited Balance Sheet and P&L Account within 60 days of AGM.

Are Producer Companies tax exempt?

No, Producer Companies are not completely tax exempt. However, agricultural income is exempt from income tax under Section 10(1) of the Income Tax Act, which benefits the members.

Can a Producer Company be converted into a Public Limited Company?

No, a Producer Company cannot be converted into a Public Limited Company. It can only be converted into a multi-state co-operative society.

Who can become a member of a Producer Company?

Only persons engaged in an activity connected with, or relatable to, primary produce can become members. This includes farmers, agriculturalists, and producers.

What happens if a member ceases to be a primary producer?

If a member ceases to be a primary producer, they must surrender their shares to the Producer Company at par value or at a value determined by the Board of Directors.

Is it mandatory to appoint a Company Secretary for a Producer Company?

Every Producer Company having an average annual turnover exceeding five crore rupees in each of three consecutive financial years must appoint a whole-time Company Secretary.

What is the voting right structure in a Producer Company?

In a Producer Company consisting only of individuals, each member has a single vote, regardless of the number of shares held, ensuring democratic control.

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A producer company is a legally organised body of farmers and agriculturalists aimed at improving their standard of living and profitability.

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Meaning & Benefits

Understand the Meaning of a Producer Company

A producer company is a legally organised body of mainly farmers and agriculturalists, which was introduced by the government to help raise the standard of living, income and profitability of Indian farmers and agriculturalists. It is formed as a private company itself and is governed under the provision of Companies Act 1956.

A farmer/agriculturists can incorporate a producer company when they have 10 or more producers and 5 directors with a minimum capital of Rs. 5,00,000/-.

Permitted Activities

Activities Allowed to the Producer Companies

Under Companies Act, 2013, a producer company is allowed to carry on activities like production, processing, harvesting, procurement, pooling, grading, handling, selling, marketing, export of members’ primary produce or import of goods or services for the advantage of members.

It can also provide training & education, technical & consultancy services, and promote mutual assistance, welfare measures, financial services, insurance of producers or their primary produce.

Matched to AIS, before the department checks

Your return is reconciled line-by-line with Form 26AS and AIS so TDS mismatches never come back as a notice. Filing is only done after you approve the summary.

With standard services vs With our expert team

Cannot easily raise capital from members
Less credibility among financial institutions
Not recognized under Companies Act specifically for farmers
Limited scope for large scale agricultural business
Higher risk of personal liability in unregistered bodies

Loans and financial assistance under Producer Company
Separate legal entity with limited liability
Ideal for agriculturalists and farmers
Governed transparently under Companies Act
Can add multiple members and raise significant capital

How it works

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Upload Form 16 and answer a 5-minute questionnaire.
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Comprehensive Guide to Producer Company Registration AY 2026-27, explained

A producer company is a legally organised body of mainly farmers and agriculturalists, which was introduced by the government to help raise the standard of living, income and profitability of Indian farmers and agriculturalists. A producer company is formed as a private company itself and is governed under the provision of Companies Act 1956.

The company is incorporated with an objective as stated under the law i.e. Production, harvesting or selling as the primary production and related activities. A farmer/agriculturists can incorporate a producer company when they have 10 or more producers and 5 directors with a minimum capital of Rs. 5,00,000/-.

There is no particular provision for Producer Company under Companies Act, 2013, however, chapter IXA of Companies Act, 1956 administers it. According to Section 465 of the Companies Act, 2013, the provisions of Part IX A of the Companies Act, 1956 are pertinent to a Producer Company in a way as if the Companies Act, 1956 has not been abolished until a particular Act is legislated for Producer Companies.

Documents you will need

Self-attested PAN Card of Members and Directors
Passport Size Colored Photos of Members and Directors
Self-attested ID proof (Passport/Voter ID/Aadhar/Driving License)
Self-attested Address Proof (Bank Statement/Utility Bill)
NOC from the Owner of Property/Utility Bill for Registered Office
Producer certificate of all subscribers certified by tehsildar/agriculture officer

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Why choose us for this service

Limited Liability

Switched jobs? We merge employers correctly and fix double-counted slabs.

Financial Assistance

Side income reported right, expenses claimed where eligible.

Farmer Focused

Old vs new compared on your real numbers, not thumb rules.

Separate Legal Entity

We monitor your refund until it's credited.

Member Expansion

Missed the deadline or made an error? We fix it.

Notice shield

Filing reconciled with AIS/26AS to prevent the most common notices.

Year-round access

Your expert stays reachable after filing, not just in July.

Standard Producer Registration honest pricing

Complete Producer Company Incorporation package with DSC and DIN for 5 directors.

Single Form 16
HRA & standard deductions
Regime comparison
E-verification support

Everything in Salaried
Multiple Form 16s / job switch
House property & interest income
Capital gains up to 50 trades

Everything in Multi-income
Unlimited capital gains & ESOPs
Foreign income / assets schedule
Priority CA callback

Comprehensive Guide to Producer Company Registration why it pays to use an expert

A producer company is a legally organised body of mainly farmers and agriculturalists, which was introduced by the government to help raise the standard of living, income and profitability of Indian farmers and agriculturalists. A producer company is formed as a private company itself and is governed under the provision of Companies Act 1956.

The company is incorporated with an objective as stated under the law i.e. Production, harvesting or selling as the primary production and related activities. A farmer/agriculturists can incorporate a producer company when they have 10 or more producers and 5 directors with a minimum capital of Rs. 5,00,000/-.

There is no particular provision for Producer Company under Companies Act, 2013, however, chapter IXA of Companies Act, 1956 administers it. According to Section 465 of the Companies Act, 2013, the provisions of Part IX A of the Companies Act, 1956 are pertinent to a Producer Company in a way as if the Companies Act, 1956 has not been abolished until a particular Act is legislated for Producer Companies.

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Understand the Meaning of a Producer Company

Activities Allowed to the Producer Companies

Matched to AIS, before the department checks

With standard services vs With our expert team

How it works

Share your documents

Talk to your expert

Approve the summary

We file & you relax