According to Sec. 581C (1) of the Companies Act 1956, Producer Company is a company where there are ten or more individual, or each of them is a producer in any two or more producer institutions. It can also be combination of ten or more individuals or producer institutions. It should be desirous of performing a producer company. It should have its objects specified under Sec. 581B of the Companies Act of 1956.A Producer Company should also comply with the other provisions of the Companies Act of 1956.
"Producer Company" means a body corporate having objects or activities specified in section 581B and registered as. Producer Company under Companies Act. "Producer institution" means a Producer Company or any other institution having only producer or producers.