A producer company is basically a company registered to deal with the primary production of its active member related to farming. The main objective includes production to its selling and exporting also. For the purpose of incorporation of producer company, Part IXA of Companies Act, 1956 is applicable until any special Act is enacted for such companies.
A producer company is registered with ten or more member being producers; or any two or more producer institutions; or its combination. Alike any other company, the liability of its members is limited to the extent of unpaid share capital by its members. The producer company is deemed to be a private limited company under this Act, however, the threshold of the number of members does not apply to same.