Farmer Producer Company Registration
Do you want to start a business of agricultural production, export and trading of primary production in India? Then you are at right stage because Producer Company is the most easy and affordable way to start loan business in India. It only requires 10 persons with easy documents requirement to start the Producer Company. The minimum capital requirement for Producer Company registration is Rs.5 lakh.
What is Producer Company?
a Farmer Producer Company (FPC) is a type of organization in India that aims to empower and improve the economic status of farmers by providing them with collective bargaining power and better access to inputs, technology, markets, and credit. FPC’s are formed under the Companies Act of 2013 and are regulated by the Ministry of Corporate Affairs.
Note: Farmer Company Can Also Serve A Role Of A Lending Agency With RBI’s Consent.
Who can Register For Farmer Producer Company?
a Farmer Producer Company (FPC) in India can be registered by a group of eligible individuals or producer institutions who fulfill certain criteria. Here’s who can register a Farmer Producer Company:
1) Farmers: Individual farmers, including small and marginal farmers, tenant farmers, and sharecroppers, can come together to register an FPC.
2) Rural Producers: Other rural producer groups such as self-help groups (SHGs), farmers’ cooperatives, and producer organizations can also initiate the registration process.
3) Minimum Members: A minimum of ten eligible individuals or two eligible producer institutions are generally required to form and register an FPC.
4) Geographical Area: The members of the proposed FPC should primarily come from the same geographical area or region, often with a focus on a specific community or local agricultural activities.
5) Common Objectives: The members should share common objectives related to agricultural production, post-harvest processing, marketing, export, or other relevant agricultural activities.
6) Financial Contribution: Members are required to contribute to the equity capital of the FPC. There’s typically a minimum capital requirement for registration, which varies based on the regulations in place.
7) Documentation: The registration process involves submitting necessary documents, including the proposed company’s Memorandum of Association (MOA), Articles of Association (AOA), and other essential paperwork.
Producer Company Benefits
Producer Companies offer several fundamental benefits to their members and the communities they serve. These advantages are designed to promote the interests of producers, enhance their economic well-being, and contribute to rural development. Here are some of the key benefits of a Producer Company:
Following is Some Benefits of Producer Company
Producer Companies enable producers (such as farmers, artisans, fishermen, etc.) to join forces, increasing their collective bargaining power in the market. This empowers them to negotiate better prices for their products and services.
Market Access and Linkages:
Producer Companies facilitate direct linkages between producers and markets, reducing the need for intermediaries. This ensures that producers receive fair prices for their products and have better market access.
Value Addition and Processing:
Producer Companies can engage in value addition activities such as processing, packaging, and branding, which can increase the value of products and lead to higher profits for members.
No Taxes on the Agricultural Income:
As such, no taxes are levied on the profit generated by the Producer Company. Presently, these entities are exempted from addressing any tax obligations imposed by the IT department.
Producer Companies distribute profits to their members based on their level of engagement and contribution, directly benefiting the producers and contributing to their economic well-being.
Document Required For Farmer Producer Company Registration
Following are the mandatory documentation for incorporating Farmer producer companies in India;
- PAN & Photo
- PAN & Photographs of the active directors & shareholders
- ID Proof
- Aadhar card, DL, passport, & voter ID of the Directors, members, and shareholders.
- Address Proof
- Bank Statement, utility bills such as landline bill, mobile bill, and electricity bill
- Producer Proof
- Sarpanch letter/ Khasra – Khatuni / Income Tax Return (ITR)with Agriculture Income/ Any other proof a person as a serving member
- Registered Address proof
- Owner’s No objection certificate, utility bill, and Rent agreement
Pre-incorporation Legalities for incorporating Farmer Producer Company in India
- At least ten producers: Producers who registered the company. At least 5 and a maximum of 15 directors
- Maximum 200 members: if the proposed entity willing to function as a private limited company
- Note: Inter-state co-operative society functioning as a producer farmer company may have more than 15 Directors for one year from the incorporation date as a producer company.
Why Approach ETaxwala for Incorporation services?
There are plenty of legal requisites that one needs to comply with when it comes to the company incorporation process. From name approval to document authorization to post registration legalities, there are heaps of mandatory compliances that could become a daunting task for the first-timer. E-Taxwala ‘s professionals are competent enough to handle the incorporation legalities with ease and keep things transparent throughout the process so that clients do not face any hassle in commencing their business journey.
Why ETaxwala is best for Incorporation Services?
- Facilitate comprehensive support throughout the incorporation process;
- Well versed of underlying compliances and registration legalities;
- In-depth experience in tackling post-incorporation compliances;
- Offers matchless assistance for paperwork and form-filling;
- Charges Nominal fees for incorporation;
Frequently Asked Questions
1. How many people are required to register a Producer Company?
A minimum of five people are required to register a producer company in India.
2. What are the Documents Required for Registration?
Identity proof and address proof is mandatory for all the proposed Directors of the Producer Company. PAN Card is mandatory for Indian Nationals. In addition, the landlord of the registered office premises must provide a No Objection Certificate for having the registered office in his/her premises and must submit his/her identity proof and address proof.
3. How long is the registration of the company valid?
Once a Company is incorporated, it will be active and in existence as long as the annual compliances are met with regularly. In case, annual compliances are not complied with, the Company will become a Dormant Company and may be struck off from the register after a period of time. A struck-off Company can be revived for a period of up to 20 years.
4. What is a Digital Signature Certificate?
A Digital Signature establishes the identity of the sender or signee electronically while filing documents through the Internet. The Ministry of Corporate Affairs (MCA) mandates that the Directors sign some of the application documents using their Digital Signature. Hence, a Digital Signature is required for all Directors of a proposed Producer Company.
5. What is Director Identification Number?
Director Identification Number is a unique identification number assigned to all existing and proposed Directors of a Company. It is mandatory for all present or proposed Directors to have a Director Identification Number. Director Identification Number never expires and a person can have only one Director Identification Number.
6. What are the requirements to be a Director?
The Director needs to be over 18 years of age and must be a natural person. The Director must be involved in farming activities.
7. Is an office required for starting a Producer company?
An address in India where the registered office of the Company will be situated is required. The premises can be commercial/agricultural/residential where communication from the MCA will be received.
Cost and Time for Producer Company Registration
Generally, it takes 10 to 15 days to register a Producer Company and its cost Rs. 30,000/- (inclusive of all taxes and fees). The complete cost breakup of Producer Company registration is as follows;.
Digital Signature Certificate (DSC)
Director Identification Number (DIN)
MOA, AOA and Incorporation Fee
Stamp Duty of the Respective State*
PAN and Tan Application
Goods and Service Tax (GST)
Company Registration Cost in India