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Producer company registration
A producer company is a company owned by primary producers such as farmers, artisans, fishermen and dairy or forest producers. It is registered under Chapter XXIA of the Companies Act, 2013 and works like a private limited company, but only producers can be members and surplus is shared based on the business each member does with the company. ISPEED prepares the DSC, DIN, name approval, MOA and AOA and files for incorporation, PAN and TAN.
What you get
- Digital signature certificates for two directors, with more added as needed
- Director identification numbers for the first directors
- Company name approval from MCA
- Memorandum and articles of association drafted and filed
- Certificate of incorporation
- PAN and TAN of the company
- Help with opening the company bank account
For whom
- Groups of ten or more farmers or artisans
- Farmer producer organisations that want a company structure
- Producer institutions pooling produce, processing or marketing
Time
15 to 30 working days
Professional fee
From Rs. 4,999
plus government fees. Plus GST at 18 percent on the fee.
What it costs all-in, in your state
Government fees and stamp duty change by state and by authorised capital. This adds them to the professional fee so you compare on the real number.
Estimate
Producer company in Maharashtra
Professional fee
Rs. 4,999
Producer company registration, professional fee
Fixed fee. GST is added below.
Rs. 4,999
Government fees (estimate)
Rs. 10,975
Digital signature certificate, 5 people
Rs. 1,500 per person. Class 3, valid for two years.
Rs. 7,500
DIN for 2 more directors
SPICe+ allots DIN for up to 3 directors at no separate fee. The rest apply through DIR-3.
Rs. 1,000
Name reservation
SPICe+ Part A. Two proposed names per application.
Rs. 1,000
MCA filing fee (SPICe+, MOA, AOA)
MCA charges no filing fee for authorised capital up to Rs. 15 lakh.
Rs. 0
Stamp duty on the SPICe+ form
Rs. 100
Stamp duty on the memorandum (MOA)
Rs. 200
Stamp duty on the articles (AOA)
AOA at Rs. 1,000 for every Rs. 5 lakh of authorised capital. Minimum Rs. 1,000, maximum Rs. 50,00,000.
Rs. 1,000
PAN application
Applied with the incorporation form.
Rs. 110
TAN application
Rs. 65
GST
Rs. 900
GST at 18 percent on professional fees
No GST on government fees or stamp duty.
Rs. 900
All-in total
Rs. 16,874
Government fees are estimates and are confirmed before filing. The professional fee is fixed.
- Registered office in Maharashtra. Stamp duty follows that state's schedule on the filing date.
- Authorised capital of Rs. 1,00,000.
- 5 directors. DSC is priced per person and is valid for two years.
- SPICe+ allots DIN for up to 3 directors at no separate fee.
- Government fees are estimates and are confirmed before filing. The professional fee is fixed.
- Based on authorised capital and the number of people entered. Change either and the estimate updates.
- Valid for 30 days.
What it is
Producer companies were first provided for in Part IXA of the Companies Act, 1956. Those provisions now continue as Chapter XXIA (sections 378A to 378ZU) of the Companies Act, 2013, inserted by the Companies (Amendment) Act, 2020. A producer company combines the cooperative idea of member ownership with the legal form of a company regulated by MCA.
Its objects are limited to activities connected with the primary produce of its members: production, harvesting, procurement, grading, pooling, handling, marketing, selling and export of produce; import of goods or services for members; processing; manufacture or supply of equipment; education and technical services; insurance; and welfare measures for members.
Requirements
- Ten or more individuals who are producers, or two or more producer institutions, or a combination of both.
- At least five and at most 15 directors.
- Every member must be a primary producer or a producer institution. Non-producers cannot hold shares.
- The name must end with 'Producer Company Limited'.
- It is treated as a private limited company for most purposes, but the 200 member cap does not apply and it can never become a public company.
- Where members are individuals, voting is one member one vote regardless of shareholding.
Benefits
- Limited liability for members and a separate legal entity that can own property, borrow and sign contracts.
- Collective bargaining: pooling produce and buying inputs together gets better prices than members can get alone.
- Access to institutional credit and to central and state schemes for farmer producer organisations (FPOs).
- Professional management with member control through the board of directors.
- Surplus is distributed as a limited return on shares and as patronage bonus in proportion to each member's business with the company.
- Perpetual succession: members can join or leave without affecting the company.
How it happens
- 01
Apply for digital signatures
The incorporation forms are filed online with the digital signatures of the directors, so the process starts with a DSC for the directors who will sign. A photo, identity proof and address proof are submitted, followed by video verification.
- 02
Get director identification numbers
Every director needs a DIN. DINs for up to three directors are allotted through the SPICe+ form. The remaining directors, since a producer company needs at least five, apply in DIR-3 using the company's digital signature after incorporation, or before filing if they already hold one.
- 03
Reserve the company name
The name must be unique and not similar to an existing company, LLP or trademark, and must end with 'Producer Company Limited'. Up to two names are proposed in SPICe+ Part A and the Registrar decides. An approved name is reserved for 20 days.
- 04
Prepare the incorporation documents
The MOA records the name, objects permitted under Chapter XXIA, the state of registration and the authorised capital. The AOA sets out membership conditions, voting rights, the board, reserves and the way surplus is distributed. All subscribers sign the MOA and AOA.
- 05
File for the certificate of incorporation
SPICe+ Part B, the MOA, the AOA, the AGILE-PRO-S form and the declarations are filed with MCA. The Registrar issues the certificate of incorporation, and PAN and TAN are allotted with it. The first AGM must be held within 90 days of incorporation.
Documents you will need
- Two colour passport size photographs of each director and shareholder
- Identity proof of each director and shareholder: Aadhaar card, passport, driving licence or voter ID card
- Address proof of each director and shareholder: bank statement or passbook, electricity bill, telephone bill or any other utility bill, not older than two months
- PAN card of each director and shareholder. The name must match the income tax database.
- Proof of the registered office address: sale deed, electricity bill, property tax receipt or any other utility bill
- No objection certificate from the owner of the premises where the registered office will be located
- Proof that each member is a primary producer, such as land records or a certificate from the concerned authority, or the registration documents of a producer institution
- Consent of at least five directors, which ISPEED prepares for signature
Documents checklist
Producer company
0 of 18 ready
Questions
Who can be a member of a producer company?
Only primary producers, that is people engaged in an activity connected with primary produce such as farming, animal husbandry, horticulture, floriculture, fishing, forestry, handloom or handicraft, or institutions of such producers.
How many people are needed to form one?
At least ten individual producers, or two producer institutions, or a mix of both. There is no upper limit on members.
How many directors are required?
A minimum of five and a maximum of 15. The first directors are named in the articles and hold office until the first AGM, which must be held within 90 days of incorporation.
Is a producer company the same as a farmer producer organisation (FPO)?
An FPO is any collective of farmers. When it is registered under the Companies Act it is a farmer producer company. Many central and state FPO schemes are open to producer companies.
How is surplus shared?
After the required transfers to reserves, surplus can be distributed as a limited return on shares and as patronage bonus in proportion to the business each member does with the company, as set out in the articles.
Does a producer company need an audit and an AGM?
Yes. The books must be audited every year, an AGM must be held within six months of the end of each financial year, and annual returns and financial statements are filed with the Registrar as for other companies.
People also need
Section 8 company registration
Register a not-for-profit company under section 8 of the Companies Act, 2013 with a licence from MCA.
plus government fees
Private limited company registration
Register a private limited company with MCA and receive the certificate of incorporation, PAN and TAN.
plus government fees
MSME (Udyam) registration
Register your business as a micro, small or medium enterprise on the Udyam portal and get the certificate banks and buyers ask for.
professional fee; no government fee for Udyam registration
Tell us what you are starting.
You get the all-in price, the government fee for your state and the list of documents the same day. Then you decide.