A producer company is formed by primary goods producers for mutual benefits from the production done in the company. This company also accepts deposits from its members and provides them loans. It is registered under and governed by the Companies Act, 2013.

Eligibility/Requirements for opening a Producer Company

· Minimum of 10 members who are producers (individual).

· Or, Minimum of 2 institutions as members who are involved in production activity.

· Minimum capital of Rs.5 lakh.

· Minimum 5 persons to be acting as directors.

Documents required for registration of Producer Company

1. Proof of identity of all the members and directors. Such documents include   Passport, Driving license, Voter Id (Self-attested copy)

2.Proof of address of all the directors and members. Such documents include bank   statements, electricity bill, water bill, gas bill, and telephone (should not   be older than 2 months) (Self-attested copy)

3. Indian   nationals are mandatorily required to provide an attested copy of PAN

4. Foreign nationals must submit attested passport copies.

5. · No   Objection Certificate from the owner of the Address to be used as a Registered Office address.

· In the case of leased property, the copy of the lease deed and copy of Electricity bill / Water bill / Gas Bill / Telephone Bill (should not be older than 2 months) for registered office property.

· In case of owned property, copy of sale deed and copy of Electricity bill / Water bill /Gas Bill /   Telephone Bill (should not be older than 2   months) for registered office property.

Advantages of Producer Company

· Members receive bonus shares.

· Members receives patronage bonus out of surplus income.

· Certain tax benefits are available subject to the company’s agricultural activities.

· Members can get the credit facility easily.

Disadvantages of Producer Company

· Lack of capital available.

· Less competitive ability of members leads to lack of efficiency in running a business.

· Transparency of business leads to a lack of secrecy.

· Extreme government regulations.

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