S krishna & company is a professionally managed firm. The team consists of distinguished chartered accountants, corporate financial advisors, and tax consultants.

Gallery Posts

Gallery Image
Gallery Image
Gallery Image

Office Maps

Farmer Producer Organization (FPO Registration) - Process, Fees, Documents Required

updated

A producer company, also known as a producer cooperative, is a type of company formed by producers of goods or services with the primary objective of pooling resources, maximizing efficiencies, and enhancing the bargaining power of its members. These companies are often established by farmers, artisans, small-scale manufacturers, or other producers who join together to collectively market their products, procure inputs at lower costs, share knowledge and resources, and access better infrastructure or technology.

In many countries, including India, the concept of producer companies is legally recognized and governed by specific regulations. These regulations typically outline the structure, governance, and operations of producer companies, emphasizing democratic decision-making, equitable distribution of benefits, and protection of members' interests.

Producer companies can vary widely in size and scope, ranging from small-scale agricultural cooperatives to larger organizations spanning multiple sectors. They often operate on cooperative principles, such as voluntary membership, democratic control, autonomy, and concern for the community.

Table of content

Pvt. Ltd. Company -Incorporation Certificate [sample]

Certificate

What is a Producer Company?

Producer company is a corporate body of producers, farmers and agriculturists with the objective of procurement, production, harvesting, grading, pooling, handling, marketing, selling or export of the members or import of goods and services for themselves.
In simple words, this type of company is formed with the aim to improve the lives of people associated with the agriculture
industry by providing them access to technology, market, credit, etc.
It is registered as a public company under the Companies Act, 2013 and must include "Producer Company Limited" as the last words of its name.
The objects of Producer Company given under Section 581B (as per the law) are as follows:

"The objects of the Producer Company shall relate to all or any of the following matters, namely : -
  1.  Production, harvesting, procurement, grading, pooling, handling, marketing, selling, export of primary produce of the Members or import of goods or services for their benefit; Provided that the Producer Company may carry on any of the activities specified in this clause either by itself or through other institution; Processing including preserving, drying, distilling, brewing, vinting, canning and packaging of produce of its Members; Manufacture, sale or supply of machinery, equipment or consumables mainly to its Members; Providing education on the mutual assistance principles to its Members and others; Rendering technical services, consultancy services, training, research and development and all other activities for the promotion Generation, transmission and distribution of power, revitalisation of land and water resources, their use, conservation and communications relatable to primary produce; Insurance of producers or their primary produce; Promoting techniques of mutuality and mutual assistanc; Welfare measures or facilities for the benefit of Members as may be decided by the Board; Any other activity, ancillary or incidental to any of the activities referred to in clauses (a) to (i) or other activities which may promote the principles of mutuality and mutual assistance amongst the Members in any other manner;

Benifits of Private Limited company Registration

pvt

Take a closer look at the benifits of FPO in India

  1. Separate Legal Entity:

Producer Company is a separate legal entity which means it can acquire assets and incur debts on its own name. The directors have no obligation to the lenders of the company.

  1. Loans and Investments:

As the producer company is formed by individuals or institutions who are primary producers, the government has passed a special provision for giving loans to the producer members. For this specific purpose, NABARD Bank was established to provide financial assistance to producers and farmers via NABARD Loan.

  1. Tax Benefits:

There are certain tax benefits and exemptions for a producer company depending upon the agricultural activity it carries on

  1. Limited Liability:

As per the Companies Act, 2013, directors and shareholders have limited liability protection. So if there are any financial issues with the company, the assets of the director are secured and could not be seized by banks or departments.

  1. Acceptance of deposits:

A registered producer company can accept deposits in the form of fixed or recurring deposits and the company can advance loan to the members and farmers at lower rate of interest.

Minimum requirements for Producer Company registration

  1. Minimum 10 producers or individuals are required to form a production company but there is no upper limit
  2. Or, at least two producer institutions are required to form a producer company
  3. Out of 10 members, 5 directors are required to incorporate producer company
  4. Minimum capital of 5 lakh rupees for producer company registration
  5. Producer company cannot be converted into a public company

Documents required for Producer Company registration

  • Passport size photographs of the members
  • Copy of PAN Card of the members
  • Copy of Aadhar Card or Voter ID
  • Bank statement (not older than two months)
  • Proof of registered place of business like utility bill
  • No Objection Certificate from the owner of the property
Note: not mandatory Incorporation company commercial business premise home address proof for registration of the company
pvt
Address proof of registered office
  1. Copy of elecricity or another Utility Bill(not older than 2 months)
  2. Rent agreement ( if rented)
  3. No Objection Certificate (NOC) from the owner of the property

Time required for registration of Producer Company

On average, it takes around 15-20 working days to register a Producer company in India subject to document verification by the Ministry of Corporate Affairs (MCA).