A producer company is a legal entity and a juristic person established under the Act. Therefore, a producer company has wide legal capacity and can own property and also incur debts. The members (Directors) of a producer company have no liability to the creditors of a producer company.

A producer company has 'perpetual succession', that is continued or uninterrupted existence until it is legally dissolved. A producer company, being a separate legal person, is unaffected by the death or other departure of any member but continues to be in existence irrespective of the changes in membership.

A producer company enjoys better credibility when compared to unregistered producer organizations. Producer companies are registered and monitored by the Central Government. Producer Organization are on the other hand governed and monitored by State Governments.

The Board of Management of a producer company can be easily changed by filing simple forms with the Registrar of Companies. The Board of Management of a producer company controls the activities of the producer company.

A producer company being a juristic person, can acquire, own, enjoy and alienate, property in its own name. No member can make any claim upon the property of the producer company as long as it is a going concern.

Limited Liability means the status of being legally responsible only to a limited amount for liabilities of the producer company. In a Producer Company, the members are not held personally responsible for the liabilities of the Producer company.