Producer Company Registration

Producer Company Registration In India
(Price Start at $ 192 /-)

Producer Companies play an important role in the Indian agricultural landscape by bringing together individual farmers and collectively managing activities such as crop production, packaging, and selling. Just like seeds require fertile soil to grow into a blooming plant, producer companies require registration to thrive and bring prosperity to their farmers.

Farmer Producer Company (FPO) means an entity designed to empower and improve the bargaining power of producers, farmers, and agriculturists. Despite the fact that more than half of the Indian population works in agriculture, farmers often face challenges such as lack of technical skills, low credit, and insufficient market access. The concept of FPO's was introduced in 2002 to combat these issues. Unlike traditional agricultural practices where individual farmers deal with these challenges and market fluctuations by themselves, members of Producer Companies jointly engage in activities such as the pooling of resources; the production, preservation, marketing, packaging, selling, and export of produce; the manufacture, sale, or supply of machinery/equipment; provision of education and technical services; power generation; and insuring the producers or their produce. Therefore, producer companies aim to encourage mutual assistance while implementing collective welfare measures.

By registering your Producer Company, you are not only complying with legal requirements but also contributing to a sustainable and cooperative agricultural ecosystem. Seedling recognizes the importance of Farmer Producer Companies in India’s agricultural revolution. Our dedicated team strives to streamline the registration process, ensure compliance, and help your company achieve legal status, thus bringing about positive changes in the lives of Indian farmers. We give clear guidance and have transparent pricing and procedures. Choose Seedling to seamlessly navigate the registration journey and accomplish your agricultural goals.

Benefits of Producer Company registration in India

  1. Liability Protection: Members of an FPO enjoy limited liability, meaning that their personal assets are protected even if the organization faces any financial challenges.
  2. Government Subsidies: FPOs are eligible for government grants and subsidies, which gives them financial support for their operations and allows the business to expand.
  3. Enhanced Credit Access: It is easier for FPOs to secure credit from financial institutions than it is for individual farmers. Its members can negotiate better terms and interest rates.
  4. Increased Bargaining Power: On account of bulk selling, producer company members can negotiate favorable prices with purchasers and avail higher profits.
  5. Improved Productivity: FPO’s enhance the efficiency and productivity of farmers by providing access to better inputs, technology, and training.
  6. Market Access: Producer Companies expose farmers to new markets and help in selling the produce at competitive prices.
  7. Secure Loans: FPOs are permitted to act as lending agencies and can provide credit against fixed deposits, gold, and government securities.
  8. Profit Allocation: Profits generated by the FPO are distributed among its members, fostering a sense of collective benefit.
  9. Tax Exemption: FPOs are exempt from paying taxes on agricultural income, relieving them of additional financial obligations.
  10. Deposit Acceptance: Registered producers within FPOs can accept deposits in the form of fixed or recurring deposits.

What are the Eligibility criteria for Producer company registration in India?

Businesses looking forward to registering as Producer Companies must have:

  • At least 10 producer individuals or 2 producer institutions as members
  • A minimum of 5 and maximum of 15 directors
  • A minimum paid-up capital of Rs. 5 Lakhs
  • A name that ends with “Producer Limited Company”
  • A registered office address for its principal place of business

What are the Documents/compliance required for producer company registration in India?

  1. PAN card and passport-size photographs of all members and directors
  2. Identity proof (Aadhar card, Driving License, passport, or Voter ID) of all members and directors
  3. Registered office address proof (such as telephone, electricity bill, water, or gas bills)
  4. Memorandum of Association (MoA) and Articles of Association (AoA)
  5. No Objection Certificate (NOC) from the landlord of the registered office premises (if applicable)
  6. Proof of producer activity/ copy of the Producer Certificate issued by the District Horticulture Officer (DHO) or any other competent authority (if applicable)
  7. Digital Signature Certificate (DSC) and Director Identification Number (DIN) of all directors
  8. Sarpanch letter/ Khasra - Khatuni/ Income Tax Return (ITR) with Agriculture Income/ Any other proof a person as a serving member

Procedure to register a Producer Company in India

  1. Apply for DSC and DIN: Obtain the DSC and DIN for all the proposed directors by submitting the required forms to the Ministry of Corporate Affairs (MCA).
  2. Name Reservation: Use our name approval and reservation service to check the validity of the company name(s) selected by you. We will then apply for name reservation using the Reserve Unique Name (RUN) form.
  3. MOA and AOA: Preparation of MOA and AOA defining the objectives, rules, and regulations of the producer company.
  4. Incorporation: Apply for incorporation of the Producer Company using the SPICe+ Part B application found on the MCA’s official website. The application must be filled and signed by a director and supported with the appropriate documentation. If the Registrar Of Companies (ROC) is satisfied with the authenticity of such details and documents, he shall issue the Certificate of Incorporation (COI), officially recognizing the producer company's existence.
  5. Apply for PAN and TAN: Our experts will then apply for Permanent Account Number (PAN) and Tax Deduction Account Number (TAN) for the newly incorporated company.
  6. Commence operations: The entity must open a bank account in the name of the company using the COI, PAN, and TAN and deposit the required minimum capital. After this, the producer company can commence its business activities.

How much time does it take to register a producer company in India?

The registration procedure usually takes about 14 to 20 working days, subject to government processing times and submission of the required documents on time.

How can Seedling help you register a Producer Company in India?

At Seedling, we excel in simplifying Producer Company registration in India, leveraging our considerable experience in handling the complexities of the process. Our skilled staff guarantees a seamless experience and aids you with key functions such as obtaining DSC and DIN for company directors. We pride ourselves on our skilled staff, who are committed to delivering customized solutions tailored to your needs. Our comprehensive services extend to PAN and TAN applications and the proficient drafting of crucial documents such as the MOA and AOA of the company. Opt for Seedling to benefit from our unparalleled expertise, backed by our proven track record and commitment to client satisfaction.

Most common question about our services

How to select a name for a Producer Company?

The name of your Producer Company must be unique and should reflect your brand’s goals and business activities. The chosen name must be distinct from existing companies, LLPs, or registered trademarks, and it should end with "Producer Limited Company" to meet regulatory requirements. Moreover, it must not violate the naming requirements laid out in the Companies Act, 2013; the Companies (Incorporation) Rules, 2014; the Trademarks Act, 1999; and the Emblems and Names (Prevention of Improper Use) Act, 1950.

What laws govern Farmer Producer Companies in India?

Farmer Producer Companies operate under the regulatory framework outlined in the Companies Act, 2013 and the Companies (Producer Companies) Rules, 2002. The specific objectives of the company must conform to those described in Section 581B of the Companies Act. Additionally, guidelines issued by the Ministry of Corporate Affairs govern their registration and functioning.

Can a producer company operate in multiple states?

Yes, a Multi-State Cooperative Producer Company (MSPC) is specifically structured to operate in more than one state. This allows producers from different regions to join forces, enhancing the collective strength and market reach of the producer company.

Can a producer company engage in non-agricultural activities?

While the primary focus of a producer company is on agricultural activities and the production of primary produce, it is permitted to engage in related activities such as processing, manufacturing, selling machinery, providing education, and rendering technical services that promote the interests of its members.

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