
SPICe vs SPICe+: Key Differences in Company Incorporation Forms
Nowadays, starting your business in India is no longer a maze of paperwork and repeated visits to government offices.
4 min read
A legally recognised entity for farmers, producers and agricultural groups, with limited liability for every member. Better market access and stronger standing with buyers and lenders, handled end to end by LegalWiz.in.
A few details, then secure checkout. Your expert takes it from there.
Starting atโน25,999+ Govt. Fees
Prefer to talk to someone first?
What a producer company is, who can form one, and why farmer groups choose LegalWiz.in to register one.
A producer company is a company registered to deal with the primary produce of its active members. Its objects run the whole way from production through to selling and exporting, which is what lets a group of farmers reach a market none of them could reach alone.
It is formed by ten or more individual producers, by two or more producer institutions, or by a combination of the two. Like any other company, a memberโs liability is limited to the unpaid amount on the shares they hold.
A producer company is deemed to be a private limited company, with one difference that matters: the cap on the number of members that applies to a private limited company does not apply here. Part IXA of the Companies Act, 1956 governs incorporation, and continues to do so until a special Act is enacted for these companies.
Everything below is handled by your relationship manager and the filing team. You supply the documents once and approve the drafts.
Government fees and stamp duty are charged at actuals and vary by state and authorised capital.
The name becomes the companyโs brand, so a coined word that is not already taken is the strongest choice.
The name of the company must end with Producer Company Limited.
A name that is simple to spell and easy to remember serves the company better than a long one.
The articles of association can grant active members special user rights, whether relating to supplying additional produce or attaching to their produce in another way, and the company may issue instruments to those members in respect of them.
A member initially receives the value of their produce as determined by the board. The withheld price can be paid later in cash or as equity shares, and surplus can be distributed as a patronage bonus, alongside bonus shares and a limited return.
Assets, liabilities, rights, debts and privileges all vest in the company, which deals and holds property in its own name. A change of members or directors affects neither its existence nor its obligations.
Members and producer institutions carry limited liability for the companyโs debts, so personal assets are unaffected by a loss or a winding up. That is what lets producers invest at lower risk.
The same set is needed for every shareholder and director. Scanned copies are enough to begin, and your relationship manager will tell you if anything needs to be re-shared in a clearer format.
A recent passport size photograph of every shareholder and director.
For every shareholder and director.
Voter ID, passport or driving licence for each person.
The latest telephone bill, electricity bill or bank statement.
The latest electricity or telephone bill for the registered office address in India.
A no objection certificate from the owner of the registered office premises.
The rent agreement for the registered office, where the premises are rented.
Step 01
Step 02
Step 03
Subject to government processing time.
A typical registration runs to 15 to 18 working days. Here is where the first fourteen go.
1 of 14 working days
3 of 14 working days
4 of 14 working days
3 of 14 working days
3 of 14 working days
Subject to government processing time and MCA turnaround.
Leverage best deals offered by the industry leaders and experience mutual growth.












Still have a question? Our team is happy to help, at no charge and with no obligation to buy anything.
Four things have to be satisfied:
Individual producers, producer institutions, or a combination of the two. Ten or more individual producers, or two or more producer institutions, are needed to form one.
The company is registered to deal with the primary produce of its active members, so membership follows from being a producer rather than from investing.
A farmer producer organisation is the general term for a body owned by farmers or producers, and a producer company is the form it most often takes when it is incorporated under company law.
Registering an FPO as a producer company is what gives it a separate legal identity, limited liability for its members and the ability to hold property and contract in its own name.
Part IXA of the Companies Act, 1956 applies to the incorporation of a producer company, and continues to apply until a special Act is enacted for these companies.
A producer company is deemed to be a private limited company under that Act, except that the limit on the number of members which applies to a private limited company does not apply here.
There is no minimum amount of capital prescribed for a producer company.
The promoters introduce whatever is sufficient to start and run the business.
A member initially receives the value of the produce they supply, as determined by the board. Part of the price can be withheld and paid later, either in cash or by allotting equity shares.
Members are eligible for a limited return, and can also be allotted bonus shares. Surplus can be distributed as a patronage bonus, in proportion to the produce each member supplied.
A right relating to the supply of additional produce by an active member, or any other right attaching to their produce.
They are available only if the companyโs articles of association provide for them, and the company may issue appropriate instruments to active members in respect of them.
The name must be formulated according to the naming guidelines. The application is made in a web form called RUN, with a maximum of two proposed names.
The registrar may ask for a fresh application with a different name if the proposals do not meet the requirements.
No. The registration process is completely online and no promoter needs to be present anywhere. Documents and details can be emailed or uploaded.
Yes, once they have obtained a Director Identification Number.
At least one director on the board must still be an Indian citizen and resident.
Give your producer group the standing it needs to reach a bigger market.
Get started