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Producer company


Producer company

 49,999.00  39,999.00

Producer company overview

Producer Companies

A producer company can be defined as a legally recognized body of farmers/ agriculturists with the aim to improve the standard of their livelihood, and ensure a good status of their available support, incomes and profitability. Under Companies Act 1956, a Producer Company can be formed by 10 individuals (or more) or 2 institutions (or more) or by a combination of both (10 individuals and 2 institutions) having their business objective as one of the following:

  • Procurement
  • Production
  • Harvesting
  • Grading
  • Pooling
  • Handling
  • Marketing
  • Selling, or
  • Export

of the primary produce of the Members or import of goods or services for their benefit.


Documents required for company incorporation 

Any of the following combination of producers can incorporate a producer company:

  • Ten or more producers (individuals); or
  • Two or more producer institutions; or
  • Combination of the above two (10+2).

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

It cannot become or deemed to become a public limited company.

  • Share capital of a Producer Company shall consist of equity shares only.
  • Members’ equity cannot be publicly traded but only transferred
  • Voting
  • Only of individuals, then voting rights shall be based on a single vote for every member.
  • Only of producer institutions, then voting rights on the basis of their participation.
  • Combination of both individuals and producer institutions then voting rights shall be based on a single vote for every member.


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