Updated on April 09, 2025 05:58:38 PM
India's economy is largely dependent on agriculture and related sectors as more than 50% of the population works in these fields. However, Small and marginal farmers face difficulties due to a lack of financial resources, technology, and market access. The Companies Act, 2013 introduced the concept of Farmer Producer Organization (FPO) registration to address these issues. To increase their sustainability and profitability, the Producer Company Registration enables farmers to work together on tasks including production, harvesting, processing, and marketing.
For farmer groups hoping to function as a corporate entity while maintaining the benefits of a cooperative, Producer Company Registration is an essential first step. It guarantees better price realization for agricultural products, facilitates loans through NABARD and other financial institutions, and provides legal recognition, and access to government subsidies. Additionally, producers can operate as a corporation and benefit from restricted liability and tax savings by completing FPO registration.
A minimum capital of ₹5 lakh and the presence of at least 10 individual members or two producer institutions are prerequisites for Farmer Producer Company registration. Farmers can create a structured business model that will guarantee long-term growth and financial stability in the agricultural industry with the proper documents and compliance.
Producer Company - Incorporation Certificate [Sample]
Table of Content
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 : -
The following benefits can be redeemed with a Farmer Producer Company registration:
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.
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.
There are certain tax benefits and exemptions for a producer company depending upon the agricultural activity it carries on.
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.
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.
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Below listed requirements must be met before applying for FPO registration:
Entities can follow the below-listed procedure to apply for Farmer Producer Company registration in India:
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Producer Company registration is a complete digital process and therefore requirement of Digital Signature Certificate is a mandatory criteria. Directors as well as subscribers to the memorandum of the company need to apply for a DSC from the certified agencies. Obtaining a DSC is a complete online process and it can be done within 24 hours. This process involves 3 simple verifications that are document verification, video verification and phone verification.
Name application for Producer Company can be done through SPICe RUN form which is a part of SPICe+ form. While making the name application of the company, industrial activity code as well as object clause of the company has to be defined.
Note: It should be ensured that business name does not resemble the name of any other already registered company and also does not violate the provisions of emblems and names (Prevention of Improper Use Act, 1950). You can easily check the name availability by using our company name search tool to verify the same.
Post name approval, details with respect to registration of the company has to be drafted in the SPICe+ form. It is a simplified proforma for incorporating a company electronically. The details in the form are as follows:
SPICe e-MoA and e-AoA are the linked forms which have to be drafted at the time of application for company registration.
Memorandum of Association (MOA) is defined under section 2(56) of the Companies Act 2013. It is the foundation on which the company is built. It defines the constitution, powers and objects of the company.
The Articles of Association (AOA) is defined under section 2(5) of the Companies Act. It details all the rules and regulations relating to the management of the company.
Post approval of the above mentioned documents from the Ministry of Corporate Affairs; PAN, TAN & Certificate of Incorporation will be issued from the concerned department. Now, the company is required to open a current bank account by using these documents. You can contact us for assistance with your current bank account opening.
The process of registering a Producer Company is complicated and involves various compliances. Our experts at Professional Utilities can simplify the whole registration process for you. Register your Producer Company Online in 3 easy steps:
Step 1:
Get in touch via call or contact form
Step 2:
Provide necessary documents
Step 3:
Get your incorporation registered in 15-20 working days
To apply for FPO registration, you must submit the following documents.
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Post incorporation of Producer Company, you’ll receive the following documents:
The total cost of Producer Company registration in India, including government and professional fees, starts from ₹24,999 and takes around 14-21 working days.
| Steps | Cost (Rs.) |
|---|---|
| Digital Signature Certificate | ₹15,000 |
| Government Fee | ₹6,000 |
| Professional Fee | ₹3,999 |
| Total Cost | ₹24,999* |
*Important Note: The total incorporation fees of a Farmer Producer Company varies from state to state. Refer to the map for state-wise prices.
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).
Conclusion
For small and marginal farmers, the Farmer Producer Organization (FPO) registration is revolutionary as it gives them a structured business model to increase their revenue and sustainability. Farmers can access government incentives, better market opportunities, and financial aid by completing FPO registration. Long-term financial security is ensured by the tax benefits, limited liability, and legal recognition that come with Producer Company registration. Farmers can engage in production, processing, and marketing activities collectively with the right documents and compliance, which leads to economic empowerment. In addition to strengthening the agricultural industry, the establishment of an FPO registration promotes rural development and self-sufficiency for farmer communities.
At Professional Utilities, we leverage our industry knowledge and expertise to help businesses navigate complex regulations, minimize risks, and optimize operations for maximum efficiency and profitability.
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At least 10 or more members, or minimum two producer institutions are required and minimum 5 lakh rupees as share capital for incorporation of the producer company. There must be a minimum of 5 directors and proper identity & address proof is required to submit alongwith professional certification (CA, CS, etc.).
A minimum of 10 members or two producer institutions are required to form a producer company.
A producer company is a public limited company having objectives specified in section 581B.
Minimum capital of 5 lakh rupees is required at the time of registration of a company.
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