At a glance
| Minimum members | Directors | Voting | Our fee |
|---|---|---|---|
| 10 individual producers or 2 producer institutions | 5 to 15 | One member, one vote for individual members | From ₹4,499 |
What is a producer company?
A producer company is a company owned by primary producers, such as farmers, that carries on their production, processing and marketing as a business. It is governed by Chapter XXIA of the Companies Act, 2013, sections 378A to 378ZU.
Chapter XXIA was inserted by the Companies (Amendment) Act, 2020 and came into force on 11 February 2021, together with the Producer Companies Rules, 2021. Before that, producer companies were governed by Part IXA of the Companies Act, 1956. Companies registered under the old law now follow Chapter XXIA.
On registration, a producer company becomes a body corporate as if it were a private limited company, but with no limit on the number of members. It can never become a public limited company. Its name must end with "Producer Company Limited". Matters not covered by Chapter XXIA follow the rules for private companies.
Producer companies and FPOs
A Farmer Producer Organisation (FPO) is a collective of farmers. It can be registered either as a producer company under the Companies Act or as a co-operative society under a state or multi-state co-operative law. A producer company is one legal form an FPO can take; it is not a separate registration.
Many FPOs choose the company form because it is registered with the Ministry of Corporate Affairs, has a professional board and chief executive, and follows company accounting and audit rules that banks and buyers recognise.
The 10,000 FPO scheme
The Government of India's Central Sector Scheme for Formation and Promotion of 10,000 FPOs was launched on 29 February 2020 with an outlay of ₹6,865 crore, and the target of 10,000 FPOs was announced as achieved on 28 February 2025.
| Support under the scheme | Amount |
|---|---|
| Management cost support | Up to ₹18 lakh per FPO over three years |
| Equity grant | Up to ₹2,000 per farmer member, maximum ₹15 lakh per FPO |
| Credit guarantee | Up to ₹2 crore per FPO for project loans |
Scheme support is given through implementing agencies and cluster-based organisations, not by registering a company alone. We register the company correctly so it can take part; ask your implementing agency or state department about eligibility for a specific benefit.
Who can form a producer company
A producer company needs producer members, a board of at least five directors, and objects limited to producer activities. There are three routes to the minimum membership.
Members
Section 378C allows a producer company to be formed by:
- ten or more individuals, each of them a producer; or
- two or more producer institutions; or
- a combination of ten or more individuals and producer institutions.
A producer is a person engaged in an activity connected with primary produce. Primary produce covers produce from agriculture and allied activities, and produce from handloom, handicraft and other cottage industries. A producer institution is a producer company or another institution with producers as members.
Membership is open only to people who use the company's services. A member whose business conflicts with the company's can be disqualified or removed under the articles.
Directors and chief executive
A producer company must have at least five and not more than fifteen directors, under section 378O. The first directors named at incorporation hold office until directors are elected. Members elect the board within 90 days of registration, and each director serves a term of one to five years as the articles provide.
The board appoints a full-time chief executive from persons who are not members. The chief executive runs day-to-day business under the board's control and is a key difference from an informal collective, where one leader often does everything.
What the company can do
Section 378B lists the objects a producer company can have. They include:
- production, harvesting, procurement, grading, pooling, handling, marketing, selling and export of members' primary produce, and import of goods or services for their benefit
- processing, including preserving, drying, distilling, brewing, vinting, canning and packaging
- manufacture, sale or supply of machinery, equipment or consumables mainly to members
- education on mutual assistance, and technical services, consultancy and training for members
- power generation and revitalisation of land and water resources
- insurance of producers or their produce
- welfare measures for members, and financing of these activities
Objects outside this list will be queried. We draft the memorandum from your actual business plan, for example a dairy, vegetable aggregation or handloom marketing unit.
How members vote and share the surplus
Voting follows participation, not money. That is the main reason collectives choose this form over a private limited company.
| Membership | Voting rule under section 378D |
|---|---|
| Only individual members | One vote per member, whatever the shareholding |
| Only producer institutions | Votes based on each institution's participation in the company's business in the previous year, as the articles provide |
| Individuals and institutions | One vote per member |
The share capital of a producer company consists of equity shares held only by members. Members can receive:
- a limited return on their share capital, as the articles and the members decide;
- a patronage bonus, a share of the surplus in proportion to each member's business with the company, such as the produce they supplied;
- bonus shares, where the members approve.
The annual general meeting approves the budget and accounts, patronage bonus, limited return and bonus shares. The board decides the price for members' produce. Surplus is not paid out like investor dividends in a private company.
Documents you need
Collecting documents from ten or more members takes the most time. We give you a checklist per member and review every scan before filing.
From each director
- PAN card
- Aadhaar, or voter ID, passport or driving licence
- Address proof not older than two months: bank statement, electricity or mobile bill
- Recent photograph, personal email ID and mobile number
From each subscribing member
- Identity and address proof as above
- Evidence that the member is a producer, such as land records for a farmer or an artisan identity card; we tell you what works for your members
- For a producer institution: its registration certificate, the resolution approving membership, and the authorised signatory's KYC
For the registered office: utility bill not older than two months, the owner's no-objection certificate, and the rent agreement if rented. Many FPOs use a member's premises or a panchayat or collection-centre address with the owner's NOC.
The registration process and timeline
In our experience, a producer company is incorporated in about 15-20 working days once all members' documents are complete. These are usual timings, not legal limits; incomplete member records are the most common delay.
| Step | What happens | Usual time in our experience |
|---|---|---|
| 1. Planning call | Members, producer institutions, directors, share capital, business plan and objects | 1-2 working days |
| 2. Member documents | Checklist sent, scans reviewed member by member | 3-7 working days, depending on your group |
| 3. Digital signatures | Class 3 DSCs for directors and subscribers who sign | 2-3 working days |
| 4. Name approval | SPICe+ Part A with two names ending "Producer Company Limited" | 2-4 working days |
| 5. Drafting and SPICe+ Part B | Memorandum with section 378B objects, articles with voting, patronage and admission rules, AGILE-PRO-S; certified by a professional | 2-3 working days |
| 6. Approval | Certificate of incorporation with CIN, PAN and TAN | 3-7 working days |
SPICe+ allots DINs to up to three proposed directors. If more of your first directors need a DIN, we plan how to handle it before filing and tell you in the quote.
Fees for producer company registration
Your total is our professional fee plus government fees. A producer company has share capital, so the MCA fee and some stamp duty depend on authorised capital.
| Fee | Amount |
|---|---|
| Professional fee (Regikart) | From ₹4,499 |
| Name reservation, SPICe+ Part A | ₹1,000 |
| MCA incorporation fee, authorised capital up to ₹15,00,000 | Nil |
| MCA incorporation fee, above ₹15,00,000 | Charged by slab on authorised capital; quoted before filing |
| DIN for up to three directors through SPICe+ | No separate fee |
| PAN / TAN | ₹66 / ₹65 |
| Stamp duty, Delhi | ₹10 on SPICe+, ₹200 on e-MoA, 0.15% of authorised capital on e-AoA (maximum ₹25,00,000) |
| Stamp duty, West Bengal | ₹10 on SPICe+, ₹60 on e-MoA, ₹300 on e-AoA |
| Stamp duty, other states | Quoted before filing |
ROC normal filing fee for later forms (AOC-4, MGT-7 and most event forms), set by authorised capital:
| Authorised capital | Normal fee per form |
|---|---|
| Less than ₹1,00,000 | ₹200 |
| ₹1,00,000 to less than ₹5,00,000 | ₹300 |
| ₹5,00,000 to less than ₹25,00,000 | ₹400 |
| ₹25,00,000 to less than ₹1,00,00,000 | ₹500 |
| ₹1,00,00,000 and above | ₹600 |
Professional fees exclude GST at 18%. Government fees, where they apply, are paid at actuals to the department and are shown separately. Fees verified on 22 September 2026.
What our fee covers: planning call, member document review, name check and SPICe+ Part A, memorandum and articles drafted for Chapter XXIA, SPICe+ Part B with AGILE-PRO-S, DINs for up to three directors, company PAN and TAN, professional certification, and replies to any query on the application. Digital signatures are quoted separately.
Compliance after incorporation
A producer company follows the company law cycle, plus the Chapter XXIA rules on its board and general meetings. Plan for them from day one.
| When | What | Note |
|---|---|---|
| Within 30 days | Board appoints the first auditor | Section 139(6) |
| Within 90 days of registration | Members elect the board; first AGM | Chapter XXIA |
| Within 180 days | Declaration of commencement of business, with proof of subscription money | INC-20A; see INC-20A filing |
| Every year | AGM approves accounts, budget, patronage bonus and limited return | Section 378S |
| Every year | Statutory audit and AOC-4 | Every company is audited |
| Every year | Annual return | MGT-7, or MGT-7A where the company qualifies as a small company; we confirm each year |
| Once every three financial years, by 30 June | DIR-3 KYC Web for each director | Directors already compliant are next due 30 June 2028 |
| Every year | Income-tax return (ITR-6) | 31 October 2026 for FY 2025-26 |
AOC-4 and the annual return carry an additional fee of ₹100 a day per form if late, with no cap. Missing INC-20A can lead to a penalty of ₹50,000 on the company and ₹1,000 a day on each officer in default, up to ₹1,00,000. See annual ROC filing, DIR-3 KYC and our annual compliance package. For bookkeeping across many members' transactions, see accounting services.
Producer company vs co-operative society
Both give producers a jointly owned business with democratic voting. The difference is the law, the regulator and how much outside control applies.
| Point | Producer company | Co-operative society |
|---|---|---|
| Law | Companies Act, 2013, Chapter XXIA | State co-operative societies Act, or the Multi-State Co-operative Societies Act, 2002 |
| Registered with | Ministry of Corporate Affairs through SPICe+ | Registrar of Co-operative Societies |
| Area of operation | Anywhere in India | The area in its bye-laws; multi-state registration to work across states |
| Minimum members | 10 individual producers or 2 producer institutions | Set by the applicable co-operative Act |
| Voting | One member, one vote for individual members | Generally one member, one vote |
| Board | 5 to 15 directors, plus a full-time chief executive | As the Act and bye-laws provide |
| Surplus to members | Limited return and patronage bonus | Dividend and bonus within the limits of the Act |
| Filings | MCA annual filings and statutory audit | Returns and audit under the co-operative Act |
| FPO scheme | Eligible form | Eligible form |
Choose a producer company if you want to operate across states without separate registrations, want a professional chief executive, and expect to deal with banks, processors and large buyers that know company accounts. Choose a co-operative if your members already work within a local co-operative system and your state's support routes run through it.
How a producer company is taxed
A producer company is taxed as a domestic company. Which Act applies depends on the year.
For FY 2025-26 (AY 2026-27), under the Income-tax Act, 1961, the rate is 25% where turnover in FY 2023-24 did not exceed ₹400 crore, otherwise 30%, plus surcharge and 4% cess, or 22% under section 115BAA with a 10% surcharge and 4% cess. From Tax Year 2026-27, company income is taxed under the Income-tax Act, 2025, where the 22% option continues in section 200.
Farmers' own agricultural income is treated separately in their hands. We review whether any deduction is available for your company's activities when we prepare its return.
Why FPO promoters choose Regikart
Regikart is a CA and CS firm with 250+ clients. Producer company applications are prepared by our secretarial team and reviewed by a Company Secretary before filing.
- Objects written for your business. We draft section 378B objects and member rules from what your members will actually do.
- Member-by-member document checks before filing, so one missing record does not hold up approval.
- One team afterwards for accounting, the AGM cycle, annual MCA filings and income tax.
- Offices in Kolkata (Head Office), Delhi and Bengaluru, with producer companies registered for every state through documents shared on WhatsApp and email.
Call or WhatsApp +91 70444 94804, or email [email protected].