Farmer Producer Company Registration

What is Farmer Producer Company (FPC) Registration?

The 2013 Companies Act made a Producer Company available in India. It offers those involved in producing (what has been grown or produced, typically through farming) the chance to establish a corporation. A farmer-producer business can be founded by two or more producer institutions, ten or more producers (individuals engaged in or involved in activities linked to produce or growth), or a combination of ten or more producers and producer institutions. Such a business must have at least five directors, an approved capital of Rs. 5 lacks, and it can only have equity capital. A private limited company can be formed using a similar process as a farmer-producer company.

What is Farmer Producer Company Registration (FPC) Regulation?

The Companies Act of 1956 states that a producer company may be founded by two or more institutions, ten individuals, or a combination of both. There is no maximum number of members. A producer company should have as one of its goals the acquisition, harvesting,pooling, production, marketing, grading, handling, selling, or export of the product or the import of goods and services for the advantage of the members.

The producer company supports the conversion of cooperatives into corporations and helps the development of cooperatives as corporations. The idea behind the farmer-producer company is to encourage the improvement of financially disadvantaged farmers in India through cooperation and joint efforts.

These organizations strive to achieve their fundamental objectives, which frequently center on the members’ mutual financial gain. Farmer Company does not intend to in any way benefit the public domain as a result.

Note: With RBI approval, the Farmer Company may also act as a lending agency.

What are the Objectives of Farmer Producer Company (FPC)?

On behalf of the members, the producer company is essentially allowed to carry out any of the following actions either directly or through other entities:

• The buying, making, gathering, sorting, pooling, handling, promoting, selling, or exporting of the product or the importing of goods and services for the benefit of members.
• Processing of member-produced food includes canning, canning, distilling, brewing, and packing.
• Manufacturing, selling, or supplying its members with equipment, supplies, or consumables.
• Educating its members and others through the concepts of mutual help.
• To further members’ interests, provide technical services, consulting services, research and development, training, etc.
• Power production, transmission, and distribution.
• Restoring land and water resources and talking about and communicating about primary produce.
• Primary produce producers and their insurance.
• Promotion of mutuality and support strategies.
• Welfare measures for the members’ benefit.
• Any additional activity that supports or is related to the goals mentioned above.
• Financing all operations, providing credit options, or improving members’ financial situations.

What is the Benefit of Farmer Producer Company (FPC)?

The combination of a cooperative society and a registered company is known as a Producer Company. With a governing structure akin to that of a corporation, it excels in the unique aspects of a cooperative organization. A registered corporation that has several people (mostly farmers) serving as its members is what is meant by this phrase.

The Farmer Producer Company in India has provided the list of benefits below:

• Accepting Deposits: According to the current bylaw, the Producer Company may accept a fixed or recurring deposit.
• Financing With Security: Farmer Producer Corporations are legally allowed to serve as lending institutions. They are qualified to borrow money in exchange for fixed deposits, gold, and government-issued securities.
• Giving Members A Share Of The Profits: The farmer-producer company keeps its revenue or profit, and it distributes it among the working members of the group.
• No Taxes on Agricultural Revenue: As a result, the Producer Company’s profit is not subject to taxes. These organizations are currently exempt from any tax responsibilities imposed by the IT department.
• Loan Service for Members: Legally, Farmer Producer Corporations may give credit to the original members.

What are the Types of Farmer Producer Company (FPC) Registration?

• Production Businesses: Production, sourcing, or manufacturing of any primary produce for its members (for subsequent sale to others) are the significant duties of producer businesses.
• Marketing Businesses: A company can qualify as a farmer producer company even if it engages in the marketing or promoting of fresh products or offers members and others educational services.
• Technical Service Businesses: A producer company may be registered if it offers producers technical support, provides education and training services, or engages in research and development.
• Financing Businesses: Any company that finances producer activities may register as a farmer producer company, whether those operations are in the production, marketing, or development fields.
• Infrastructure Businesses: Companies that provide producers with infrastructure, whether in energy, water resources, irrigation methods, land use, or consultancy over the same may be referred to as producer companies.

What are the Requirements for Farmer Producer Company (FPC)?

Those legal requirements before the incorporation of Farmer Producer Company are as follows:

• The company must have ten manufacturers minimum to register.
• There shall be five minimum and fifteen maximum directors.
• If the proposed entity is willing to operate as a private limited corporation, there can be 200 members at maximum.

Note: For one year following the incorporation of a producer company, an interstate cooperative society operating as a producer-farmer company may have more than 15 Directors.

What Documents are Required for Farmer Producer Company (FPC)?

The required papers for forming Farmer Producer Companies in India are as follows:

• Photo and PAN
• Identity Proofs
• The Directors, Members, and Shareholders’ Aadhar cards, Driving Licences, Passports, and Voter IDs
• The Address Proof
• Bank statements and utility bills for your landline, mobile, and power.
• Producer Assurance
• Any additional evidence identifying a person as a serving member, such as a sarpanch letter, a Khasra-Khatuni, or an income tax return (ITR) showing agricultural income.
• Evidence of registered address
• Utility bill, rent agreement, and owner’s no objection letter.

What is the Process of Farmer Producer Company Registration?

The suggested member must submit an online application in the e-form Spice+ on the MCA portal to start the incorporation procedure. After making an account, the applicant can access the form on the MCA portal’s services section after creating an account.

The Spice+ e-form, broken down into two key components, is an online application for company registration.

Parts A and B

The applicant can legalize the proposed name in Part A, and the following services are provided in Part B:

• Incorporation
• Allocation of a DIN (Director Identification Number)
• Allotment of a PAN (Permanent Account Number)
• Tax Account Number (TAN) allocation
• Registration with EPFO
• Registration for ESIC
• GSTIN distribution
• Registration for professional taxes
• Creation of a bank account

An integrated digital form known as Spice+ is used by three distinct ministries working at the federal and state levels to deliver ten services. The applicant can easily register and save time and money using this electronic form. Given the continuing Ease of Doing Business (EODB) drive, the Indian government has created the Spice+ e-form. The Ministry of Corporate Affairs typically grants the registration certificate thirty days after receiving the application.

What is Farmer Producer Company Registration Assist?

What is the Cost of Farmer Producer Company (FPC) Registration?

Are you looking for Farmer Producer Company Registration Fees then here the details for you. The Farmer Producer Company Registration cost start from ₹13000 to ₹50000 along with Government Fee ₹8000 and Professional Fee ₹5000.

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