What is a Producer Company?


Producer Company is kind of company that is registered under the Companies Act and is set with objectives to attain improved agricultural production, importing of goods, procurement and selling and distribution of produce. It consists of a group of people involved in the production of primary produce or having one or more objectives relating to primary produce.


Features of Producer Company


1. Need 10 producers to Form a Company.
2. A minimum of 5 and maximum 15 Directors would be Required to Form a Producer Company.
3. Producer company cannot be converted into a public company. 4. Paid-up capital needs to be more than or equal to Rs. 5 Lakhs.
5. Loans can be availed with more chances and are backed by NABARD.


Sybersify Solutions producer Company Package


The Services which are included in our package are as Follows:
✅ Digital Signatures of Producers
✅ DIN of Directors
✅Filing of Spice form
✅Issue of Incorporation Certificate along with PAN and TAN
✅Memorandum of Association
✅Articles of Association
✅Provisional PF ESI Registration
✅GST Registration
✅MSME Registration


Types of Producer Companies


There are following types of Producer Company:
Production Businesses: These types of Producer Companies are those which are mainly involved in production, procurement or manufacture of any primary produce for its members.
Marketing Businesses: Even a business that is involved in the marketing or promotion of primary produce or provision of educational services of its members can constitute itself as a Producer Company.
Technical Services Businesses: Any company offering technical assistance to producers, providing training and education or conducting research and development can register as a Producer Company.
Financing Businesses: Any business financing producer activities, be it marketing, producing, development domain can register as a producer company.
Infrastructure Businesses: Business involved in providing infrastructure to producers whether, in the form of electricity, water resources, irrigation techniques, land utilization may constitute themselves as a producer company.


Documents Required for Producer Company Incorporation


1. Pan Card of all Directors and Subscribers
2. Identity Proof i.e. Voter Id Card/ Driving License/ Aadhar Card/ Passport of all Directors and Subscribers
3. Address Proof i.e. Bank Statement, Mobile bill, Telephone bill of all Directors and Subscribers
4. Passport Size Photographs of all Directors and Subscribers
5. Current Electric Bill/ Utility Bill as Registered Office Proof
6. Rent Agreement if Applicable
7. Farmer Certificate of all Members


Producer Company Incorporation Procedure


Step -1 Arrange all Required Documents:
The first step is to arrange all the documents and send the same over the email / WhatsApp to us. Once all the Documents are Received, we will Start the Further Process.
Step -2 DSC and Name Availability:
The Next Step is to Start the Further Process of Digital Signature and Checking the Name availability.
Step-3 Preparation of Documents:
The Next Step is Preparation of Documents to be Submitted at Department.
Step-4 Filing of Spice Form:
The Next Step is Submission of Spice 32 Form at Department.


Conditions for Incorporating Producer Company


1. Ten or More Individuals, Each of Them Being a Producer
2. Two or More Producer Institutions
3. Combination of ten or more individuals and producer institution


Minimum Requirements for Incorporating Producer Company


1. Members of the Company receive a value for the product or products pooled and supplied as determined by the Director. The amount will be distributed in cash or by allotment of equity shares. Members can get bonus shares in proportion to the amount held.
2. The additional amount that may be remaining after making provision for payment of limited return and reserves can be distributed as patronage bonus. This will be in proportion to their participation in business activities either in cash or through equity shares.
3. Members of Producer Company are also eligible to get financial assistance by way of credit facility for a period not exceeding 6 months.
4. Loans and advances against security as specified in articles, upon the condition of repayment within a period of 3 months and not more than 7 years.


Advantages of Producer company


1. Minimum 5 Directors
2. Maximum 5 lakh as Paid Up Capital


FAQ on Producer Company


Q1, what is the Minimum Number of Directors Required to Form a producer Company?
Minimum of five directors are required to register a Producer Company.

Q2. Who can Become Member in producer Company?
Any individual/organization can become the member of Producer Company.

Q3. What is Minimum Capital required for the Formation of Producer Company?
Ans.: Minimum authorized capital required for the formation of Producer Company is Rs. 5 Lakhs.