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Producer Company

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Producer Company


A Producer company form of business organization these types of companies are working like co-operative societies mainly these types of companies are registered in rural areas by the producers.These companies are incorporated to develop the rural economies and bridge the gap between industry and agriculture, rural and urban area and industry and labour etc. these companies are basically for the promotion of rural economies.Producer Company is basically for farmers. It saves the farmer from intermediaries. Producer Company is regulated by companies act 1956.

Producer Company is companies which are engaged in the object under section 581B. We can say that Producer Company is a hybrid of the co-operative society and private company.


Objects of Producer Company
  • production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit: Provided that the Producer Company may carry on any of the activities specified in this clause either by itself or through other institution ;
  •  processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its Members ;
  •  manufacture, sale or supply of machinery, equipment or consumables mainly to its Members ;
  •  providing education on the mutual assistance principles to its Members and others ;
  •  rendering technical services, consultancy services, training, research and development and all other activities for the promotion of the interests of its Members ;
  •  generation, transmission and distribution of power, revitalization of land and water resources, their use, conservation and communications relatable to primary produce ;
  •  insurance of producers or their primary produce ;
  •  promoting techniques of mutuality and mutual assistance ;
  •  welfare measures or facilities for the benefit of Members as may be decided by the Board ;
  •  any other activity, ancillary or incidental to any of the activities referred to in clauses (a) to (i) or other activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner ;
  • Financing of procurement, processing, marketing or other activities specified in clauses (a) to (j) which include extending of credit facilities or any other financial services to its Members. (2) Every Producer Company shall deal primarily with the produce of its active Members for carrying out any of.



Some important points to be kept in mind while incorporating Producer Company:
  • Members must be primary producer
  • Company name shall end with the Producer Company Limited
  • Limit of maximum number of member is not applicable
  • Minimum no of 10 members
  • Object as per section 581B
  • Directors
  • Minimum -5
  • Maximum -15
  • CEO shall be appointed By BOD.


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