What is Producer Company?

A Producer Company is a company, formed with an objective of production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of
goods or services for their benefit. Term “Produce” means things that have been produced or grown, especially by farming. This means that, a Producer Company deals primarily with agriculture and post-harvest processing activities.

Conditions to form a Producer Company:
★ A Producer Company can be formed by 10 or more Individuals as producers.
★ Two or more producer institutions or a combination of 10 or more producers and producer institutions.
★ A minimum capital of Rs. 500,000 is required to incorporate a Producer Company.
★ The share capital of a Producer Company shall consist of equity shares only.
★ The shares held by a Member in a Producer Company, shall be in proportion to the backup of that company.
★ There should be minimum 5 directors and maximum of 15 directors in aProducer Company.
★ A full time chief executive (CEO) should be appointed by the board.
★ There is no maximum limit of the members
★ The Producer Company in India cannot be deemed as a public company.
&straf; There should be at-least four boards meetings every year and the meetings should not be held less than once every three months.

Who can become a Member in Producer Company?
★ A person being a “producer” or a “producer institution” (whether incorporated or not) can be admitted as member of Producer Company

Documents Required for Producer Company Registration
★ Photograph of all the Directors and Members
★ PAN Card of all the Directors and Members
★ ID Proof of all the Directors and Members (Driving License/Passport/Voter ID)
★ Electricity Bill or any other utility bill for the address proof of the Registered Office
★ Special requirement: Proof of farming in the form of 7/ 12 extracts of Agricultural Land or certificate from District Tahsildar (proof of farming will differ from state to state)

Startup India Recognition
Startup India is an Indian Government initiative that is intended to build a strong eco-system for nurturing innovation and startups in the country to drive sustainable economic growth and generate large scale
employment opportunities. Through this initiative, the government aims to empower Startups to grow through innovation and design.
The objectives of the Startup India Movement are outlined below. The action plan envisages supporting the startups and more:
★ Enhanced infrastructure, including incubation centres
★ IPR facilitation, including easier patent filing
★ The better regulatory environment, including the tax benefits, easier compliance, improved setting up of a company, fastest mechanism and more.
★ A goal to increase the funding opportunities
★ Provide a vast networking database for the entrepreneurs and other stakeholders in the startup ecosystem.

Eligibility Criteria

Period of Existence of Entity: The Period of existence and operations of the company should not exceed 10 years from the date of formation

Type of Entity: The DPIIT Certificate of Recognition is provided for the company which is incorporated as a Private Limited Company, a Limited Liability Partnership (LLP) or a Registered Partnership Firm.

Annual Turnover: To get the DPIIT Certificate of Recognition, The firm should have an annual turnover of Rs. 100 crore for any of the fiscal years since its federation

Original Entity: To avail the DPIIT Certificate of Recognition, the company should not have been incorporated by splitting up or recreating an already existing entity.

Innovative & Scalable Entity: The entity should be working towards development or improvement of a product, process or service.
The entity should have a scalable business model with high potential for the creation of wealth and employment. The firm should have the potential to generate employment or create wealth.