Farmer Producer Organisation (FPO) Registration
A Company that is registered with the Ministry of Corporate Affairs (MCA), for the purpose of agricultural production and processing activities, is called a Producer Company. It comprises a committee of a minimum of 10 people and 2 institutions.
Documents Required from Directors, Shareholders
- Pan Card Copy (Mandatory)
- ID Proof (Any one) – Driving License/ Voter ID/ Passport Copy/ Aadhaar Card
- Address Proof – Latest Bank Statement/ Latest Telephone or Mobile Bill/ Latest Electricity Bill.(MUST be less than 30 days old)
- Passport Size Photograph
Documents Required for Registered Office Address
- NOC – No Objection Certificate from the Owner of the Property
- Address Proof – Latest Telephone Bill or Mobile Bill/ Gas Bill/ Electricity Bill (MUST be less than 30 days old)
How To Register A Producer Company
Efinac assists you in Producer Company Registration at every stage until the MCA issues you a certificate of incorporation.
Name Reservation
DSCs & DIN
Drafting & Filing
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 Businesses
The main functions of producer companies are production, procurement or manufacture of any primary produce for its members (for further sale) and to others.
Marketing Businesses
Even 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 Businesses
Any business offering technical assistance to producers, providing training and educational services or conducting research and development can register as a producer company.
Financing Businesses
Any business financing producer activities, be it in the production, marketing or development domain, can register itself as a producer company.
Infrastructure Businesses
Businesses 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
- Passport-size Photograph
- Specimen signature (blank document with signature [directors only])
Note: Any one of the directors must self-attest the first three documents. In case of foreign nationals and NRIs, all the documents must be notarised (if currently in India or a non-Commonwealth country) or apostilled (if in a Commonwealth country).
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
Limited Liability
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. Therefore, only the amount invested in the business would be lost; the personal property of the directors would be safe.
Economies Of Scale
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. With a producer company, multiple farmers can work as a collective and lower costs, reduce risk and even get access to better credit facilities. This enables better planning and bargaining power with buyers.
Better Management
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. Also, a Producer company has a separate legal existence, which means that it isn't affected by the death of any of its members.
Farmer Producer Company Registration Process
5 Business Days
A minimum of five directors must apply for a DSC, which is necessary to file the company registration documents. For this, you will only need to provide a few scanned documents and details; our representatives will fill the form and submit it online.
7 Business Days
As soon as we apply for the DSC, we will prepare the SPICe i.e. INC-32 documents. These documents will take around a week to prepare, and will include the name for your company, the Memorandum of Association (MoA) and Articles of Association (AoA). Once these documents are prepared satisfactorily, they will be submitted to the RoC.
10 TO 15 Business Days
Depending on the workload of the RoC, the documents will be approved in 10 to 15 days. Once approved, the Certificate of Incorporation will be mailed to your registered office address. With this document, you can apply for a Permanent Account Number (PAN) and Tax Account Number (TAN), both of which are necessary for opening a bank account in the name of the business.
Why Efinac
35 Business Days
Producer Company Registration takes anywhere around 32-35 business days (subject to government authorisation). Every month we handle 400 requests for registrations, so let us in about your business and we’ll get the process initiated as soon as we can.
9.1 Customer Score
We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.
160 Strong Team
Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.
Recent Updates
Nashik-based Sahyadri Farmers Producer Company (FPC) is set to launch its 1’st Incubation Centre.
October 17, 2020In response to the tremendous growth of start-up ecosystems as a result of incubation centres in India, the Nashik-based Sahyadri FPC will launch its own with the assistance of other partners. The government will further nurture FPC by achieving profitability and optimal growth.
08th April: Extending Help to Farmers
Amid COVID-19 and lockdown, a producer company of Kadur, Karnataka has come forth and helped farmers sell their produce in the local market.
16th April: 81 Farmer Producer Companies ensuring uninterrupted supplies
81 Farmer Producer Companies with the approval of the State Horticulture Department of Haryana are engaged in supplying fruits and vegetables from their member farms to end-consumers in their respective areas.
FAQ
This isn't required. The entire process is now automated and handled online. You will receive the DIN numbers and Certificate of Incorporation by e-mail from Ministry of Corporate Affairs (MCA).
Expect it to take 35 to 40 days to complete the entire procedure. This will, however, depend on whether you have all your papers in order and the workload of the RoC.
Every company has two parts to its name. The first part is unique. For example, 'WIPRO' or 'MERCEDES-BENZ'. The second part describes the business activity of the company. For example, 'Legal Solutions' or 'Technologies'. This second part must be as descriptive as possible. The name of the company must end with 'Producer Company Limited'.
Most importantly, all directors must have an identity and address proof and rights to practice on the property they are operating on. The owner of the registered office will also need to submit an NoC, stating that the company may operate from that location.
A Digital Signature Certificate, or DSC, is issued by six certifying authorities in India (such as e-Mudhra and n-Code). It is nothing but an electronic version of a physical signature. It can be used to verify documents in the company registration process.
All companies are legal entities by themselves. Therefore, they have a continuous existence. The only way a producer company can cease to exist (other than shutting it down voluntarily) is if the annual compliances are not met or if the creditors/courts force its closure.
Yes, a producer company must have its books audited from its very first year. And in case turnover crosses Rs. 5 crore, it must employ a full-time company secretary to manage its affairs.
To review means to look back over something for evaluation or memory.
