Farmer Producer Company Registration
Empower farmers and promote rural development by Farmer Producer Company registration. Learn the process, fees and benefits of FPC registration in India.
A Farmer Producer Company (FPC) is a corporation registered under the Companies Act of 2013 to enable agricultural and allied operations, enhancing farmers’ income and standard of life and encouraging rural development. FPCs are owned and operated cooperatively by farmers. FPCs are designed to empower farmers by removing intermediaries and granting them access to markets, inputs, and technology. FPCs improve farmers’ economic and social well-being and contribute to the expansion of the agriculture industry in this way.
What Are the Documents Required to Register a Farmer Producer Company?
The following documents must be obtained for a farmer-producer company to be incorporated in India:
Photo and PAN
For the serving directors and shareholders, PAN and photographs.
Driving License, passport, voter ID, and Aadhar card.
Bank statement, and utility bills (phone, landline, and electricity).
Any other proof can identify a person as a producer, such as a letter from the sarpanch, a Khasra-Khatuni, an ITR with agricultural revenue, or a Khasra-Khatuni card.
Proof of Registered Address
Utility Bill plus Rent Agreement plus Owner’s NOC
Pre-Incorporation Requirements For An Indian Farmer Producer Business
Producers who will reward/incorporate the company must number at least ten. Here, the promoter may be an individual or a producing organisation.
5 or more Directors
Promoters and Directors are frequently the same in businesses; although they can be different persons also.
How Do I Register My Farmer Producer Organisation?
The member of the prospective production company must submit an electronic form, called Spice+, on the MCA portal to start the incorporation procedure. To achieve this, the applicant must first register on the MCA portal and then open the Spice+ form on the home page’s Services section.
Spice+ acts as an electronic form for forming a company, which primarily consists of two components: Sections A and B
Part B facilitates the following services, while Part A permits the applicant to register the proposed company name;
Incorporation requirements for FPO:
- Registration with EPFO
- registration for ESIC
- Registration for professional taxes
- Creation of a bank account
- GSTIN distribution
The outcome of ongoing government initiatives to improve the ease of doing business is Spice+ (EODB). Spice+ is a comprehensive web-based tool that allows three Central Government Ministries and Departments, i.e. MCA, the Department of Revenue of the Finance Ministry, the Ministry of Labor, and One State Government (Maharashtra). Using this form, the applicant can cut costs and time associated with starting a new business in India.
Benefits of registration of FPO
- The FPOs are non-profit groups run by farmers who also actively participate in creating policies and making decisions.
- The FPOs are open to anyone prepared to take on the obligations of membership without regard to social, gender, politics, race, or religion.
- The FPOs give their elected officials, managers, elected representatives, and employees the training and knowledge they need to contribute to the FPO’s development properly.
- The Cluster-Based Business Organizations (CBBO) facilitate the formation and promotion of the FPOs, and the implementation of the agencies engages the FPOs at the cluster or state level.
- To stimulate greater branding, specialisation, processing, marketing, and exports by the FPOs, the “One District One Product” initiative promotes the FPOs.
- The CBBOs deliver the initial training, while the FPOs offer hand-holding and sufficient instruction.
- Priority is given to developing FPOs in aspirational districts, with at least one FPO in each block.
What Is the Processing Amount to Be Paid to Register a Farmer Producer Company?
Processing fees for registering a Farmer Producer Company (FPC) may vary based on permitted capital, state, and number of directors, among other variables. Generally, the fees are paid to the Registrar of Companies (ROC) for processing incorporation documents. The 2014 Companies (Registration Offices and Fees) Rules outline the fee schedule. Form SPICE, used to incorporate an FPC, costs Rs. 2,500 for firms with an authorised capital of up to Rs. 10 lakhs.
In addition, there may be fees associated with obtaining Digital Signature Certificates, Director Identification Numbers, and the services of attorneys or chartered accountants. Consult a specialist to obtain an exact estimate of the processing costs associated with registering an FPC.
- DSC Digital Signature Certificate – 5,000
- the Director Identification Number (DIN)- 500 per form (if separate form for DIN is being filed)
- Name Acceptance – 1,000
- MOA, AOA, and incorporation fees – depends on the authorised capital and place of registration.
- Application for PAN and Tan – 131
- Goods and Service Tax: 1,755
A Producer Company must be registered, which typically takes 10 to 15 days and costs Rs. 26,500 (including all taxes and fees). The following table breaks down the total cost of registering a Production Business. The minimum number of directors and members for a farmer-producer company is five, and there must be ten members (Directors Min – 5 and Max – 15 ).
FAQs: Farmer Producer Company Registration
How Much Capital Should I Keep as Paid-up Capital for the Farmer Producer Company?
A Farmer Producer Company’s (FPC) needed paid-up capital may differ depending on the size of the business, the number of shareholders, and the range of activities. The paid-up capital, however, may be less than the authorised capital. Speaking with a legal or financial professional is advised to determine the proper paid-up capital for your FPC according to your unique needs.
How Do I Register as a Producer Company?
You must apply for name availability with the Registrar of Companies (ROC), obtain Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) for each director, and file the incorporation documents, including MOA, AOA, and Form SPICE, with the ROC to register as a Producer Company.
In conclusion, registering a Farmer Producer Corporation is a key step in empowering farmers and encouraging rural development. FPCs are an outstanding illustration of the cooperatives’ capacity to support inclusive and sustainable development. By offering access to markets, inputs, and technology, FPCs enable farmers to achieve control over their livelihoods. In addition, they facilitate collective action, decrease transaction costs, and enhance bargaining power. To ensure compliance with regulatory standards, registering an FPC necessitates acquiring several legal and financial documents and getting professional assistance.
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