Farmer Producer Organisation (FPO) Registration
How To Register A Producer Company
Step-1
We help you with your company’s name reservation. We ensure the name should have the words ‘PRODUCER COMPANY’ at the end.
Step-2
We help you get 5 DSCs and 1 DIN.
Step-3
We draft and file the documents required for your company registration (MoA, AoA, PAN & TAN).
What is FPO - Farmer Producer Organisation
A Producer Company was introduced in India with the Companies Act, 2013. It gives persons engaged in activities related to producing (what has been grown or produced, particularly by farming) the opportunity to form a company. A producer company can be formed by 10 or more producers (persons involved in, or in activities related to, produce or growth), two or more producer institutions or a combination of 10 or more producers and producer institutions. Such a company can only have equity capital, require a minimum of five directors and an authorised capital of Rs. 5 lakh. The procedure for forming a Producer company is similar to the one for forming a private limited company.
Types of Producer Companies
Production BusinessesThe main functions of producer companies are production, procurement or manufacture of any primary produce for its members (for further sale) and to others.
Marketing BusinessesEven a business involved in the marketing or promotion of primary produce or provision of educational services to members and others can constitute itself as a producer company.
Technical Service BusinessesAny business offering technical assistance to producers, providing training and educational services or conducting research and development can register as a producer company.
Financing BusinessesAny business financing producer activities, be it in the production, marketing or development domain, can register itself as a producer company.
Infrastructure BusinessesBusinesses involved in providing infrastructure to producers, whether in the form of electricity, water resources, irrigation techniques, land utilisation, or consultation with regard to the same, may constitute themselves as a producer company.
Documents Required for Producer Company Registration
TO BE SUBMITTED BY DIRECTORS & SHAREHOLDERS
- Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs)
- Scanned copy of Voter's ID/Passport/Driver's License
- Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
- Specimen signature (blank document with signature [directors only])
- Note:
Any one of the directors must self-attest the first three documents.
FOR THE REGISTERED OFFICE
- Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
- Scanned copy of Notarised Rental Agreement in English
- Scanned copy of No-objection Certificate from property owner
- Scanned copy of Sale Deed/Property Deed in English (in case of owned property)
- Note: Your registered office need not be a commercial space; it can be your residence, too.
Advantages of a Producer Company
- All businesses can run the risk of not being able to repay their liabilities. It is a necessary evil. In this event, a sole proprietor (or individual producer) would be personally liable for all the debts of the business. The members of a producer company, on the other hand, have unlimited liability as the company is an entity in itself.
- Only 15% of India's farmers own over two acres of land. The majority of farmers are, therefore, unable to safely unlock the advantages that come with economies of scale.
- Rather than a single farmer managing the entire business, work within a producer company can be divided between its directors. The entity is managed by the Board of Management, which has a tenure of five years.
Company formation and registration has been made easier with Digitronic. You can easily consult a company secretary through us for all of your compliance needs, including foreign income, FDI, PF, and pensions.