The concept of Producer Company was recognised for the first time by the Companies Act, 2013. It gives persons engaged in activities related to produce (especially farming) the opportunity to form a company. There must be 10 or more members to form a Producer company. Also, these members must be engaged in activities related to produce or growth. Another way of forming Producer company is coming together of two or more producer institutions; or a combination of 10 or more producers and producer institutions. Other requirements are that it can have only equity capital, a minimum of five directors and an authorised capital of Rs. 5 lakh. The process for registering a producer company similar to that of a private limited company.