In India, the idea of Producer Business was implemented to enable cooperatives to act as a corporate body under the Ministry of Corporate Affairs.
The Companies Act describes a Producer as "any person engaged in any operation connected with or linked to any primary produce" (Produce: "things produced or grown, particularly by farming"). A Producer Company is therefore a legal entity with one or more of the following objects:
A Producer Corporation's incorporation practice is then identical to that of a Private Limited Company. Next, receive the DSC and DIN for the Producer Company's suggested first directors. After acquiring the DSC and DIN, the name reservation application may be lodged with the Registrar of Companies (ROC). A producer company's name must finish with the words "Producer Limited Company." If the ROC has approved the name, file the application for incorporation in the specified format to incorporate the Producer Business.
If the Registrar is pleased with the Producer Company's incorporation proposal, he or she will approve it and grant a Certificate of Incorporation. When created, a production corporation will act in the same way as a private limited company, subject to certain restrictions. A Producer Corporation, on the other hand, would not have a cap on the number of shareholders, unlike a Private Limited Company. Furthermore, despite the fact that the name of a Producer Corporation ends with the words "Producer Limited Company," it shall not constitute or be considered to become a public limited company in any circumstances.