That was established with the intention of producing, harvesting, acquiring, grading, pooling, handling, promoting, and selling the primary products of its members or importing goods or services for their advantage. Things that have been created or cultivated, particularly through farming, are referred to as “product.” This indicates that a Producer Company mostly engages in agricultural production and post-harvest processing operations.

Checklist for incorporation of a Producer Company:

• Formed by 10 or more Individuals as producers.
• Two or more producer institutions or a combination of 10 or more producers and producer institutions.
• Should be minimum 5 directors and maximum of 15 directors.
• No maximum limit of the members.
• Only equity shares can be issued by a producer company.
• A minimum capital of Rs. 5,00,000 
• A Member’s shares in a Producer Company must be proportional to the company’s backup.
• The shares held by a Member in a Producer Company, shall be in proportion to the backup of that company.
• The board  shall appoint A full time chief executive (CEO) .