Producer Company Registration

in just ₹14,999 /- (No hidden charge & Inclusive Govt Fee)

1000+

Company Registered

10+

Years of Experience

What’s Included?

Company Name Approval DSC with Token Incorporation Certificate Company PAN & TAN Company Master Data PF & ESIC Registration Post Incorporation Documents & DSC Dispatch Support Bank Account Opening Support AOA & MOA of the Company Dedicated Incorporation Manager

Get Expert Consultation

Producer Company Registration - Process, Fees & Benefits

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, Services of 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]

Process of Producer Company Registration

Entities can follow the below-listed procedure to apply for Farmer Producer Company registration in India:

Step 1. Application for Digital Signature Certificate (DSC)

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.

Step 2. Application for the Name Approval

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.

Step 3. Filing of SPICe Form (INC-32)

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:

Details of the company
Details of members and subscribers
Application for Director Identification Number (DIN)
Application for PAN and TAN
Declaration by directors and subscribers
Declaration & certification by professional

Step 4. Filing of e-MoA (INC-33) and e-AoA (INC-34)

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.

Step 5. Issuance of PAN, TAN and incorporation certificate

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.

Documents Required for Producer Company Registration

To apply for FPO registration, you must submit the following documents.

Identity and Address Proof of Directors/Shareholders

Passport size photographs of the directors
Copy of Aadhar Card
Copy of PAN Card or Passport (in case of foreign national or NRI)
Copy of latest bank statement and utility bill

Address Proof of Registered Office

Copy of electricity/water/gas bill (not older than two months)
Rent agreement with Aadhar card and PAN card of owner
Property Tax Receipt / Sale deed / POA
No Objection Certificate (NOC) from the owner of the property
3 GPS Based Photograph of Registred office

documents required for producer company registration

Documents you’ll get Post FPO Incorporation

Post incorporation of Producer Company, you’ll receive the following documents:

Certificate of Incorporation
Permanent Account Number (PAN) of the company
Tax Deduction or Collection Account Number (TAN) of the company
Articles of Association (AoA)
Memorandum of Association (MoA)
Director Identification Number (DIN)
Digital Signature Certificate (DSC)
EPF and ESIC registration documents
Company Master data

Producer Company Registration Fees

The total cost of Producer Company registration in India, including government and professional fees, starts from ₹14,999 and takes around 14-21 working days.

Steps	Cost (Rs.)
Digital Signature Certificate	₹10,000
Government Fee	₹1,000
Professional Fee	₹3,999
Total Cost	₹14,999*

*Important Note: The total incorporation fees of a Farmer Producer Company varies from state to state. Refer to the map for state-wise prices.

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 : -

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 of the interests of its Members ;
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;
Financing of procurement, processing, marketing or other activities specified in clauses (a) to (j) which include extending of credit facilities or any other financial services to its Members."

Benefits of FPO Registration

The following benefits can be redeemed with a Farmer Producer Company registration:

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.

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.

Tax Benefits:

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

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.

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.

Benefits of Producer Company Registration

Minimum Requirements for Producer Company Registration

Below listed requirements must be met before applying for FPO registration:

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

Register your Producer Company Online with Professional Utilities

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

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).

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.

FAQ's on Producer Company Registration

How do you start a producer company?

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.).