FPO Registration in India - Register Your Farmer Producer Company Online
Farmers and agri-entrepreneurs across India are turning their collective hard work into a legally recognized, profit-sharing business through FPO Registration. A registered Producer Company gives your collective the legal strength to grow, trade, and compete at a larger scale.
- 10-15 working days
- 10 Members Minimum
- 5 Directors Minimum
- Rs. 5 lakhs Minimum Capital
- No Personal Liability
Register Your Producer Company in India Today!
- Sell Directly to Buyers & Eliminate Middlemen
- Access Government Grants, & NABARD Funding
- Separate Legal Identity for Your Farmer Group
- Limited Liability Protection for Every Member
- Open Business Bank Accounts & Raise Invoices
- Easy Access to Markets
Request a Callback
4.9 star all time rating
4.8 star all time rating
OVERVIEW
What is Producer Company (FPO Registration)?
A Farmer Producer Company (FPC) is a hybrid legal form of FPO (Farmer Producer Organization) in India. It is registered as a producer company under the Companies Act, 2013. The primary agricultural producers are the applicants who register for FPO as a formal cooperative business. The registered primary agricultural producers enjoy the cooperative society and the benefits of a private limited company. Although like the registered companies, FPO also works as a legally recognized entity. The personal assets of the designated members are protected from the company's debts and obligations.
To register a Farmer-Producer Company in India, at least 10 or more members are required. At the same time, an FPC can be formed with a combination of two or more producer institutions. By forming a producer company in India, the farmer avoids dealing with intermediaries, including minimizing costs through economies of scale and boosting the agricultural value in markets. On the other hand, NABARD provides a strong ecosystem for training, funding, and infrastructure to the registered producer companies.
Features
Features of Farmer-Producer Companies in India
The primary producers (farmers) get effective market access and various benefits with FPO registration. Under this cooperative entity, the farmers come together to manage their agricultural activities. Some key features of an FPC include the following:
_1783406247.png)
Deposit Acceptance
The registered farmer-producer gets access to convert the deposits into a fixed deposit (FD) or a recurring deposit. The members of the organization can utilize the fixed deposit as working capital.
Loan Against Security
FPO provides the credit facilities to its active members to support their agricultural and allied activities. However, the producer company is restricted from issuing profits to the general public or non-members. This feature makes the company more credible.
Members Upliftment
The profit earned by a producer company is distributed to the members as dividends and bonuses. Meanwhile, the profits are distributed according to the volume of produce supplied.
Tax Exemption
Under Section 10(1) (agricultural income) and Section 80IA, the registered producer companies enjoy the tax exemption. This means the profit earned from the agricultural activities is directly shared with the farmer members.
Benefits
What Are the Benefits of FPO Registration?
An FPO is registered as a producer company under the Companies Act. Under this structure, the small-scale farmers transform into a unified corporate entity. This enables the members to utilize the wide range of advantages, including:
✅ Government Subsidies & Grants:
FPOs receive significant financial support, equity grants, and subsidies from organisations such as NABARD. Through the NABARD scheme, the registered Farmer-Producer Companies (FPCs) get access to financial assistance as well as management grants for over three years.
✅ Easier Credit Access:
Financial institutions and banks usually prefer FPOs over individual farmers because they appear more trustworthy and credible. Furthermore, the banks consider the producer companies as corporate borrowers, not agricultural borrowers. Therefore, these organizations receive credit from the banks at better interest rates.
✅ Better Bargaining Power:
FPOs are more able to negotiate for better prices in deals with buyers. The farmers can sell their agricultural products in bulk for higher profits. Through it, all members get the benefits. Furthermore, bulk selling highly reduces the aggregator margin, which typically takes 15-25% of the produce value.
✅ Boost Efficiency & Productivity:
The farmers of FPOs buy essential agricultural products in bulk. The agricultural products, such as seeds, fertilizers, and pesticides, are received at wholesale pricing, not retail markups. This significantly reduces the input cost for farmers.
✅ Easy Access to Markets:
Farmers usually deal with intermediaries who cut a significant amount for their own profits. But with a registered producer company, the farmers can deal directly with large retailers, exporters, and food processors. Although this advantage is crucial to eliminate the non-transparent chain of intermediaries.
Eligibility Criteria
Eligibility Criteria for FPO Registration
To legally form a Farmer-Producer Organization (FPO) in India, the farmers first need to meet the set criteria. Here is the checklist of specific producer company registration requirements:
Primary Producers & Institutions
To be a part of a producer company, you need to be involved in primary production such as farming, livestock, fishing, artisan, or rural crafts. All registered members must actively engage in agricultural activities.
Minimum Members
At least 10 individual producers must be designated for farmer-producer company registration, and there is no upper limit on the number of members. Otherwise, it can also be formed by two or more existing institutions, such as cooperative societies.
Minimum Directors
To establish an FPC, a minimum of 5 directors is required. The number of directors can be increased up to 15. All designated directors must be 18 or above.
Authorized Capital
The total authorized capital of the company must be Rs. 5 lakhs, and it is not mandatory but recommended. A minimum of 10 members is required, and the contribution is based on share capital.
Registered Office
The producer company must establish and verify its registered office in India within 30 days of its incorporation. The registered office should have a functional physical address.
NRIs & Foreign Nationals
Under the Companies Act, 2013, NRIs and foreign nationals are not eligible to be part of a Farmer-Producer Company (FPC) (shareholders, regular members, or directors). However, to get membership in FPO, the NRIs are required to obtain additional regulatory approval under the FDI policy.
Who Cannot Form a Producer Company?
A Farmer-Producer Company (FPC) cannot be formed by everyone. The following individuals cannot apply for the FPO registration:
- The individuals who are not associated with primary production, such as non-farmers, general investors, or VCs.
- The non-Indian residents and foreign corporate entities cannot be members of a producer company unless specific regulatory approval is granted.
- The institutions, investors, and private equity are also strictly excluded from establishing an FPO.
- The general public, whose primary livelihood doesn't align with primary produce, is also restricted.
Required Documents
Documents Required For FPO Registration in India
The following documents are necessary for producer company registration in India:
✅ Pan Card of All Designated Indian Members
✅ Aadhaar Card, Voter ID, Passport, or Driving License for Identity Proof.
✅ for Address Proof, Provide the Bank Statement, Electricity Bill, or Mobile Bill, Which Should Not Be Older Than 2 Months.
✅ Recent Passport-Size Photographs of All Directors and Shareholders.
✅ Provide a Copy of Khasra, Khatauni, or Land Registry Documents for Landholding Proof.
✅ Letter or Certificate Issued by the Local Village Tehsildar, Sarpanch, or Agriculture Officer.
✅ Utility Bill for the Registered Office (Not Older Than 2 Months).
✅ If the Property Is on Rent, Provide a Rent/lease Agreement.
✅ No Objection Certificate (Noc) from the Property Owner.
✅ All Incorporation & Governing Documents Such as Dsc, Din, Moa, and Aoa.
✅ If Applying Under the 10,000 Fpo Scheme, the Documents Required Are Land Holding, a Cbbo-Empanelled Letter, and a Business Plan.
✅ Form Dir-2 (Director's Consent) Must Be Signed by All Proposed Directors Before Application Filing.
Important Note: The Aadhaar number of members must be linked to their mobile number, as it is used for OTP verification on the MCA portal.
Process
Process for Online Producer Company Registration
Follow this step-by-step guide to apply for the Farmer-Producer Organization (FPO) in India-
Step 2: Name Approval
Must apply for the producer company name approval through the MCA service portal. The proposed name must be unique and not similar to any existing company. The producer company's name ends with the suffix "Producer Company Limited."
Step 3: Draft MOA & AOA
The producer company requires drafting the memorandum and articles of association. The MOA highlights the company's specific objectives and scope, whereas the AOA determines the rules and regulations that govern how the organization will operate.
Step 4: INC-12 or SPICe+ Filing
SPICe+ eliminates the requirement of a multi-form process. Use the INC-12 if you want to convert the existing one; otherwise, use the SPICe+ to incorporate a brand new producer company. The SPICe form combines incorporation, PAN, and TAN in one filing.
Step 5: Certificate of Incorporation
Once the application and documents are verified, the ROC (Registrar of Companies) will issue a Certificate of Incorporation. This is the final step, which determines that your entity is legally registered as a Farmer-Producer Company (FPC) in India. The certificate is issued within 7 to 10 working days after complete filing, subject to MCA approval.
Step 6: PAN & TAN Issuance
With the Certificate of Incorporation, the entity will receive both PAN and TAN at the same time. Both are generated electronically upon final approval. There is no need to file a separate application for PAN or TAN.
Step 7: Post-Incorporation
Under the producer company's name, open the current bank account that must be joined by at least two officially nominated signatories. To open the account, use the Certificate of Incorporation (COI) and PAN/TAN. Once it is incorporated, FPOs become eligible to apply for equity matching grants, which are facilitated by bodies like NABARD or SFAC.
Why Choose JustStart?
Why Choose JustStart for FPO Registration?
Handling the complex documentation and strict administrative regulations might be daunting for farmers who are not aware of all the specific requirements. But there is no need to worry, as JustStart helps individuals or businesses to start their own company with a specific structure. Here are some solid justifications for selecting our service
_1731407048.gif)
Registered Companies
With extensive experience, we have registered over 10,000 businesses across various corporate structures such as Pvt Ltd company, LLP, and farmer-producer organisations.
Included Services
Our experienced and professional team guides you throughout the producer company registration process. Our package includes applying for DSC, drafting the MOA & AOA, filing the application for name approval, and notifying you upon issuance of the certificate of incorporation.
Timeline Commitment
We are committed to completing every specific work according to the strict guidelines set by the governing authority. We provide support from documentation to final approval, which is completed within 15-20 working days.
Expert Guidance
Your producer company is incorporated under the guidance of dedicated CAs, CSs, and legal advisors. Further guidance for NABARD/SFAC schemes benefits, which is important after incorporation.
Locations
Producer Company Registration in Other States and Cities
LET'S CLEAR ALL THE DOUBTS!
Frequently Asked Questions (FAQs)
A Producer Company is like a team of farmers or producers who come together to work as one big unit. By pooling their resources, they can produce more, handle processing, and sell their goods more effectively. This teamwork helps them earn better and support each other in their business activities.
The main objectives of a Producer Company are to help its members make more money by working together. This includes improving how they produce and sell their products, sharing resources and tools, and getting better deals for their goods.
FPO Registration online allows members to buy and sell in larger quantities, which can lower costs and boost profits. They can also share knowledge and resources, making it easier to improve their farming or crafting.
The minimum share capital requirement for a Producer Company in India is ₹5 lakh. At least 50% of this capital must be contributed by its members.
To register a Producer Company, obtain digital signatures and Director Identification Numbers (DIN) for the proposed directors. Reserve the company name, prepare the Memorandum of Association (MOA) and Articles of Association (AOA) as required, and file the incorporation documents.
Click here to read more about: What is MOA and AOA?
A member of a Farmer Producer Company (FPC) can be any farmer or person involved in farming activities. Groups or organizations that support farmers can also join.
A minimum of 10 individual producers can come together to form a Producer Company, with no upper limit on the number of members. Alternatively, at least 2 producer institutions can form a Producer Company.
Yes, a Farmer Producer Company (FPC) can engage in non-agricultural activities, provided these activities are allied to agriculture or beneficial to the primary producers. This includes activities like marketing, processing, and promoting the welfare of its members.
A Farmer Producer Company (FPC) can benefit from government schemes by accessing financial grants, subsidies, and technical support aimed at improving agricultural productivity, infrastructure, and market access.
Yes, a registered Co-operative Society can be converted into a Producer Company under the provisions of the Companies Act, 2013. This conversion requires approval from members and compliance with the prescribed legal procedure. Once converted, the entity enjoys the benefits and governance structure of a Producer Company.
No, the shares of a Producer Company are not freely transferable like those of a public company. Transfers are generally restricted to existing members, ensuring ownership remains within the producer community.
A Producer Company is permitted to make donations or contributions for the promotion of agriculture, rural development, producer welfare, or any activity connected to the objectives of the company. However, such donations must align with the provisions of the Companies Act and the company’s articles.
The exact government fees for the Farmer Producer Company (FPC) heavily depend on the state's stamp duty and total authorized capital. However, the typical cost ranges from ₹ 2,500 to ₹ 9,000, depending on your authorised capital.
The processing period for producer company registration typically takes 15 to 25 working days. It starts from securing a DSC (Digital Signature Certificate) and name reservation to waiting for final approval by MCA. However, the timeline can be extended due to inaccuracies in documents and workload on the Registrar of Companies (ROC).
Yes, you can claim the benefits under the 10,000 FPO scheme, but farmers are required to establish a producer company in India. Under this scheme, you and your fellow farmers will get the advantages such as lower management costs, matching equity grants, and credit guarantees.
