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poonamgandhi

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Published on: Jun 24, 2026

Producer Companies Rules, 2021

Recently, on 11

th February 2021, the Ministry of Corporate Affairs announced the Producer Companies Rules, 2021. It should be noted here that with the introduction of the new rules, the Producer Companies (General Reserve) Rules, 2003 are replaced. The newly introduced Producer Companies Rules, 2021 are briefly explained in the current article.

Applicability of the rules-

The Producer Companies Rules, 2021 will apply to all the persons engaged in any of the activities in connection with or relatable to any of the following produce-

  • Produce of farmers arising from agriculture, animal husbandry, floriculture, horticulture, viticulture, pisciculture, forest products, forestry, re-vegetation, farming plantation products and bee raising. It also includes production of farmers arising from any other primary activity/ service which promotes the interest of the farmers/ consumers.
  • Produce of persons engaged in handicraft, handlooms and other cottage industries.
  • Others-
    • Products resulting from the above activities,
    • Products resulting from all the ancillary activities,
    • By-products of the above products,
    • All the activities intended for the increase of any of the above produce.

Procedure for the alteration of the registered office from one state to another-

As per provisions of rule 4 of the Produce Company Rules, 2021, when there is a change in the registered office and the change results in a change of state. The producer company needs to follow the below procedure-

  1. The producer company should intimate the change of the situation of the registered office in Form No. INC 22.
  2. The producer company should file an application for alteration of memorandum of association in the following manner-
    • Filing of an application in Form No. INC 23.
    • Additional documents to be submitted with Form No. INC 23-
      1. The copy of Memorandum of Association (with all the proposed alterations),
      2. A copy of the minutes of the relevant general meeting,
    • A copy of Power of Attorney or the Board Resolution or the executed vakalatnama,
    • List of creditors and debenture holders covering following details-
      • Name and address of all the creditors and debenture holders; and
      • Nature and corresponding amount due to the creditors and debenture holders relating to debts; claims or liabilities.
    • A duly authenticated copy of the published advertisement and corresponding notices issued.
    • A copy of objection, if any, received and corresponding responses in the matter.
    • Acknowledged copy of service of application copy (along with all the annexures) to the Registrar as well as the Chief Secretary of the State Government/ Union territory where the registered office is presently situated.
      1. Certified copy of Central Government’s order approving the alteration of the memorandum should be filed in Form No. INC 28.

Investment from and out of the general reserves-

As per rule 5 of the Producer Companies Rules, 2021, investment is possible in any one or combination of the following, out of the general reserves of the producer company-

  1. Invest in fixed deposits; securities; units and bonds issued by any of the followings-
    1. Central Government;
    2. State Government;
    3. Co-operative societies; or
    4. Scheduled bank.
  2. Invest in any of the following banks-
    1. Co-operative bank;
    2. State co-operative bank;
    3. Co-operative land development bank;
    4. Central co-operative bank; or
    5. Any other scheduled bank.
  3. Invest in any of the securities as specified under section 20 of the Indian Trust Act, 1882.
  4. Invest in the shares or securities of any of the followings-
    1. Inter-state co-operative society; or
    2. Any other co-operative society.
  5. Invest in either shares or securities or any assets of the public financial institutions as specified under section 2(72) of the Companies Act, 2013.
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Frequently Asked Questions

Common questions about Producer Companies Rules 2021 Compliance Guide.

The Producer Companies Rules, 2021 is a set of rules introduced by the Ministry of Corporate Affairs on 11th February 2021, replacing the previous Producer Companies (General Reserve) Rules, 2003. These rules govern the operations and activities of producer companies in India.
The Producer Companies Rules, 2021 apply to activities related to produce from agriculture, animal husbandry, floriculture, horticulture, viticulture, pisciculture, forestry, farming, plantations, bee-raising, handicrafts, handlooms, and other cottage industries, as well as any ancillary or value-added activities related to these products.
To change the registered office from one state to another, a producer company must follow the procedure outlined in Rule 4 of the Producer Companies Rules, 2021. This includes intimating the change through Form INC-22, filing an application in Form INC-23 with supporting documents, and obtaining approval from the Central Government through Form INC-28.
According to Rule 5 of the Producer Companies Rules, 2021, a producer company can invest its general reserves in fixed deposits, securities, units, and bonds issued by the Central or State governments, co-operative societies, scheduled banks, and other specified financial institutions or assets.
The Producer Companies Rules, 2021 aim to provide a comprehensive regulatory framework for producer companies in India, facilitating their operations, investments, and governance while promoting the interests of farmers, producers, and consumers engaged in various primary and ancillary activities.
Yes, Rule 5 of the Producer Companies Rules, 2021 allows producer companies to invest their general reserves in shares or securities of inter-state co-operative societies, other co-operative societies, and public financial institutions specified under the Companies Act, 2013.
To change the registered office, a producer company must submit Form INC-22, Form INC-23, copies of the memorandum of association, meeting minutes, power of attorney or board resolution, a list of creditors and debenture holders, published advertisements, objections (if any), and proof of service to the concerned authorities.
The Producer Companies Rules, 2021 specifically cover activities related to produce from agriculture, animal husbandry, forestry, handicrafts, handlooms, and cottage industries, as well as ancillary activities and value-added products from these sectors. Other activities may not be covered under these rules.
The Producer Companies Rules, 2021 do not explicitly mention real estate as an investment option for general reserves. The permitted investments are limited to fixed deposits, securities, units, bonds, shares, and assets of specified entities and financial institutions.
The Producer Companies Rules, 2021 hold significance as they provide a comprehensive legal framework for producer companies, enabling them to operate efficiently, invest their reserves judiciously, and contribute to the growth of various primary and ancillary sectors while promoting the interests of producers, farmers, and consumers.