Producer Company Registration -Overview, Process, and document required

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A Farmer Producer Company is a hybrid between cooperative societies and private limited companies. They can undertake activities related to production, harvesting, procurement, grading, pooling, marketing, processing of agricultural produce. Know details about Producer Company Registration and process.


Objectives of Farmer Producer Company

A farmer company is established due to various reasons.

  • To facilitate the formation of co-operative businesses as companies
  • To convert existing non-cooperative businesses into companies

Activities of Producer Farmer Company

The main activitiesof farmer producer company consists of production, harvesting, processing, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the members or import of goods or services for their benefit.

Documents required for Farmer Producer Company Registration

  • Digital Signature Certificate (DSC) and DIN of the Directors;
  • Detailed information and address proof of the director such as PAN, Photo ID proof address proof etc.
  • Drafted Memorandum of Association (MOA) and Articles of Association(AOA) of Producer Company.
  • Declaration and Affidavit of the Directors as well as members.
  • Address proof of the Producer Company.
  • Non objection certificate (NOC) from the property owner.
  • Copy of Rental Agreement, if the property is rented.
  • Other required documents as necessary.

Farmer Producer Company Registration

The Companies Act, 2013, defines a Farmer Producer Company. These companies are also known as Producer Company and they focus on activities such as harvesting, production, selling, and marketing of the primary harvests of its members for their benefit. The Act also specifies that Farmer Producer Company Registration is mandatory before commencing its business activities.

Farmer Producer Company Registration Process

  • Acquire Digital Signature Certificate

The first step in thefarmer producer company registration process is to obtain Digital Signature Certificate, also known as DSC, of the designated directors. The digital signature is required to sign documents electronically which is why it is a must to obtain it as the first registration step.

  • Obtain Director Identification Number (DIN) of the Directors of the Company

The next step is to obtain DIN of the directors as well as the shareholders. DIN can be acquired directly through SPICE Form and there it is not required to file a separate form.

  • Name Approval Application

The next step is when the applicant applies for company’s name approval with the use of RUN (Reserve Unique Name) Service with the ROC (Registrar of Companies).

  • Incorporation Application

The last step is when the applicant files an application for company’s incorporation in the e-form SPICe-32. He must also submit all the required documents with the form.Once the Registrar of Companies (ROC)approves the application and the documents, a Certificate of Incorporation will be issued to him. The final name of the Producer Company must end with ‘Producer Limited Company’, as per rules.

Advantages of Farmer Producer Company Registration

  • Separate Legal Entity & Limited Liability
  • A farmer producer company, upon successful registration, acquires the status of a separate legal entity with features like limited liability and durability.
  • High Credibility in the company
  • A Farmer Producer Company serves high credibility than those provided by the unregistered producer companies.
  • Ease of making changes in Management
  • Change in Management on the Board of the Producer Company can be easily carried out just by filing the recommended form with ROC.
  • Freedom in terms of property selling & owning
  • Appropriate registration of a Producer Company provides the right to own, sell or separate the property in its name.

Farmers Producer Organization (FPO)

Small Farmers' Agribusiness Consortium (SFAC) is providing support for the purpose of boosting of FPOs. Producer Organization is a general name for an organization of producers of any harvest, for instance, agricultural, non-farm products, artisan products, etc.

An FPO is formed by a group of farm producers, is a registered body with producers as shareholders in the organization. It deals with business activities that arerelated to the farm produce and it functions with the objective of benefiting the member producers.

Financing for Farmers Producer Organizations

There are various source of funding to FPOs from the RashtriyaKrishiVikasYojana (RKVY), Equity Grant and Credit Guarantee Fund Scheme by Small Farmers Agribusiness Consortium (SFAC) for Farmer Producer Companies, setting up of Producers Organizations Development Fund (PODF) in NABARD.

Funds can be raised in three ways - there are 3 ways to raise fund to meet their working capital and investment need. They include - Equity Financing, Credit Capital and Debt Financing.

Types of loans provided to members of Farmer Producer Business

Primary producers are persons who are in need of financial assistance. Thus, according to Companies Act, 2013, a provision was passed to help the members of the Farmer Producer Company in which financial help was granted in the form of loans.The different types of loans offered to the members of the producer companies that they can take benefit from are as follows – 


  • NABARD Loan

National Bank for Agriculture and Rural Development (NABARD), assists the Producer Companies financially by offering them various financial assistance and support.


  • Credit facility

The credit facility is offered to the members of the company for a time period of six months and this limit is generally not exceeded. In addition to that, such facilities must mandatorily connect with company’s primary business activities.


  • Loans and Advances

The primary producers of crops receive loans and advances against security. The loan is repayable within a certain duration of time stipulated which must not exceed seven years from the disbursement date of the loans and advances.


Setting up a farmer producer company is similar to setting up a private limited company. The registration steps and other important requirements are not different. Taking into consideration various factors, the Government has launched various schemes for Producer companies that could benefit them.

Check Out another related blog: What is the Procedure for opening a New Manufacturing Company?