Here are the key conditions to form a Producer Company:

Minimum Number of Members: A Producer Company must have at least 10 active members or two or more producer institutions (cooperatives). Each member or producer institution must be involved in primary production activities related to agriculture, horticulture, pisciculture, animal husbandry, forestry, or any other primary produce.

Eligible Members: Only individuals or producer institutions engaged in primary production can become members of a Producer Company. Companies, corporations, or other types of entities cannot become members.

Name of the Company: The name of the Producer Company must include the words "Producer Company Limited" as part of its name. For example, "ABC Farmers Producer Company Limited."

Registered Office: The Producer Company must have a registered office in India from the day of its incorporation.

Objective Clause: The objectives and activities of the Producer Company must be related to primary production, harvesting, procurement, grading, pooling, handling, marketing, selling, export, or any other activity specified in Section 581B of the Companies Act, 2013.

Board of Directors: A Producer Company must have a board of directors elected by its members. The majority of the directors must be members or individuals engaged in primary production activities.

Capital: To establish a Producer Company, a minimum capital investment of Rs. 500,000 is mandatory during the incorporation process.

Filing Documents: The founders of the Producer Company must file the necessary documents, including the Memorandum of Association (MoA) and Articles of Association (AoA), with the Registrar of Companies (RoC) for incorporation.

Compliance with Statutory Requirements: The Producer Company must comply with all the statutory requirements and regulations set forth by the MCA and any other relevant government authorities.

Financial Transactions: The Producer Company should conduct its financial transactions primarily with its members. However, it can engage in financial transactions with non-members up to a certain limit as specified in the Companies Act.​