The 'Farmer Producer Company Registration' is the result of a long-term effort to make it possible for farmers to form companies so that they can take advantage of economies of scale in the production and marketing of farm products.
The laws covering this subject are quite complex and there are many procedures that need to be understood. This website is intended to provide comprehensive information on all aspects of Farmer Producer Company registration.
Farmer Producer Company
The Farmer Producer Company is a company registered under the Companies Act, 2013 and governed by the provisions of the Companies Act, 2013 and the Companies (Incorporation) Rules, 2014. The Farmer Producer Company is a legal entity consisting of ten or more producers who come together voluntarily to do business and is a body corporate having perpetual succession.
The main objective of Farmer Producer Organizations (FPOs) is to strengthen small farmers through collective action so as to enable them to face challenges, exploit opportunities and enhance their competitiveness in the market.
The Ministry of Agriculture & Farmers Welfare has initiated registration of FPOs under section 8 (1) of the Companies Act, 2013.
The Ministry has also designed a scheme for Promotion and Development of Farmer Producer Organizations for providing financial assistance for creation / strengthening of required infrastructure facilities in FPOs.
Benefits/advantages of forming an FPC:
- Getting more capital: In case of individual farmers, they don't have enough capital to buy inputs or machinery that is required in farming. But if they join an FPC then it will be easier for them to buy these inputs/machineries for farming.
- Getting better prices for farm produce: As FPCs will bring farmers on one platform, it will help them in bargaining with buyers or buyers may even offer a better price because of bulk purchases made by FPCs.
- Getting farm credit at cheaper interest rates: Most of the farmers get loans from moneylenders who charge high-interest rates ranging anywhere between 24% - 60%.
Farmer Producer Company Incorporation: Mandatory Documents
Farmer Producer Companies are intended to benefit the farmers by integrating them into the value chain. The benefits such as collective bargaining, economies of scale and access to finance assist in making the farmers more competitive. An FPC is a legal entity under Section 465 of the Companies Act, 2013. It can be registered with the Registrar of Companies (RoC) under Section 465 which is a separate schedule under the Companies Act, 2013.
There are certain mandatory documents which have to be submitted at the time of incorporation of an FPC. Following is a list:
- A copy of certificate issued by authority, establishing eligibility of company for registration as an FPC (if any)
- Copy of proposed common seal
- PAN Card & Identity Proof
- Proof of Residence
- NOC issued by appropriate authorities in case of applicants other than individual (if any)
- Utility bills such as landline, cellphone, and electricity bills, as well as bank statements
- Proof from the producer
- Any additional proof of a person as a serving member, such as a Sarpanch letter/Khasra - Khatuni/ Income Tax Return (ITR) with Agriculture Income/
- Proof of Registered Address
- Owner's certificate of no objection, utility bill, and rental agreement
To register a farmer producer company in India, you can follow these steps:
- The first step is to decide the name of the company and then conduct a name check with the MCA (ministry of corporate affairs). The name should be unique.
- In the second step, you have to draft an MOA (memorandum of association) and AOA (articles of association) for registering your FPC.
- Then, you have to submit the documents to MCA along with necessary fees.
- After that, the documents will be reviewed by MCA and submitted by them to the ROC (registrar of companies) for registration.
- Once registered, you will receive a certificate from the registrar of companies which will enable you to start operations as an FPC entity.
Producer Company RegistrationThe aim of Producer Company Registration in Chennai, Tamil Nadu, India to empower all the marginal and small-scale farmers in such how to unlock their economies crisis and to teach them to use all the latest and new technologies to lead their life in a better and improved way.What is a Producer Company?A company formed officially with the primary aim to improve the standard of farmers and agriculturists and it is named as a ‘Producer Company’.
This type of company is made under the businesses Act 1956, and consistent with the act the producer company are often formed with a minimum of 10 individuals or more individuals or with 2 institutions or more or with a mixture of both like 10 individuals and a couple of institutions.
And it should have one of the following as its business aim:ProductionProcurementHarvestingMarketingGradingHandlingPoolingSellingExportTo start a Producer company, the individual or the farmers have to get a Producer Company Registration according to the rules and regulations of the government.Benefits of Producer Company RegistrationProducer companies provide greater credibility in comparison to which is provided by unregistered organizations of farmers or agriculturists.Only a duly registered producer company can own or sell a property in its original name.Producer company registration online provider’s different facilities of perpetuity and indebtedness .Changes in the producer’s brand of management can swiftly be made through few forms with the concerned ROC.A registered producer company provides loans or accepts deposits to members or agriculturists at a reasonable rate of interest .Conditions for Producer Company RegistrationTwo or more producer institutionsCombination of ten or more producers or individual institutions.Ten or more single people, each of them being creators or producers.The minimal requirements include 5 directors and Rs 5 Lakhs paid-up capital.Documents required for producer company registrationCopy of rent agreement if rented property.The director’s passport size photograph.Copy of pan card of every directorLandlord NOCThe water or electricity bill of the business place.The copy of property papers just in case if it’s an owned property.What is the Process for Producer Company Registration?
Applying DIN & DSCDSC and DIN for all directors are requiredName Approval4-6 proposed names should be as long as should be unique and implicational company business.MOA,AOAMemorandum and Articles of Association should be drafted.
Affidavit and declaration by first subscribers and Directors should be preparedCompany RegisteredOnce the appliance is duly filed and accepted by ROC, a certificate of incorporation is issued and therefore the company is ready to start out its operations.Apply for PAN, TAN, and Bank accountsThen you would like to use for PAN and TAN.
PAN and TAN are received in 7 working days.
