Farmer Producer Organization (FPO)

Registration of Farmer Producer Organisation

A producer company is a business that produces, harvests, markets, and sells primary products for the benefit of its members. Knowing the nuances of producer company registration is essential to growing your business, whether you are a businessperson interested in the agribusiness sector or a farmer trying to enhance your agricultural practices. Lawgical Adda is here to help you out!

What is a Farmer Production Company?

The Companies Act of 2013 states that a producer company is a business registered under the Act whose main purpose is to engage in agricultural production, post-harvest processing, procurement, selling, and distribution, as well as import and export of goods.

A producer business comprises five directors and ten or more members collaborating on post-harvest and agricultural responsibilities. It was established to assist the company's members in trading or selling their produce to improve their financial standing.

Which are the Farmer Producer Company's salient features?

Gaining a better understanding of the characteristics of the farmer-producer company is the most effective approach to clarifying its goals and essence. 

Essentially, a producer company is a production organization run by the producers (often farmers) that comprise its membership. These businesses seek to promote mutual aid and thrift among their members. 

These are a few typical advantages that the Indian registered farmer-producer firm offers.

Acceptance of Deposits

The Producer Company is entitled to receive deposits as either recurrent or fixed deposits (FDs).

Advance secured by collateral.

The Producer Company may also operate as a lender, able to make loan disbursements secured by government securities, real estate, gold, and investments.

Assure the Upliftment of Members 

Farmer Producer Company's serving members are the only ones who receive the profits and benefits because it is prohibited from operating in the public domain. 

There are no taxes on agricultural income. 

Producer Companies are free from paying any taxes to the IT department if their revenue comes from agriculture-related activities. 

Members' Loan Facility

The producer company is allowed to give the serving members credit. 

How Do I Register a Farmer-Producer Company?

The actions you need to take to finish registering your farmer-producer firm are listed below:

Choose a Company Name and Obtain Permission

Select a name for your business after obtaining the DSC. Verify that the selected name is not already in use. After deciding on a company name, apply for approval. You must submit your application in the required paperwork and pay the Reserve Unique Name Spice Part-A fee to be approved. Following application submission, the registrar will confirm the uniqueness of the name and approve if necessary.

Complete the application for incorporation or registration.

You can now use the SPICE form to submit the incorporation application to the relevant Registrar of Companies (ROCE).

Creating the AOA and MOA

Once the registrar has authorized your company name, you can draft the Memorandum of Association (MOA) and Articles of Association (AOA). These documents contain the company's internal rules and regulations. The incorporation form must also have these documents attached.

Complete the Agile Pro Form

The Agile Pro form, which includes the bank and GST details, must be filed after the SPICE form has been appropriately filed.

Documents needed to incorporate a farmer-producer company

1. Every member and director's PAN card.
2. Four Passport-Sized pictures of the director and each member.
3. Proof of identity for each director and member. 
4. evidence of residency for each director and member.
5. verification of the registered office's address.
6. A Producer Certificate duly signed by gazette officer, Magistrate, Nayab Tahsildar, Tahsildar,  Director of  Agriculture or Deputy Director of Agriculture.

What Should You Consider Before Registering a Producer Company?

Before proceeding with the producer company registration process, you need to bear these points in mind.

1. A producer business must be registered with at least five directors and ten members.
2. A producer company must have a minimum paid-up capital of Rs. 5 lakhs to be fully incorporated.
3. Since there is no set maximum for the number of members in the firm, there can be an infinite number of them.
4. In India, a producer firm cannot be considered a public company.
5. Production firms are limited to equity share capital.
6. At least four meetings a year, held at least once every three months, are required of the production company.

Pro tip: Make sure that the accounting records have been kept updated; Create yearly financial statements.

One of the most important steps toward increasing agricultural productivity and helping local communities is establishing a producer company. With the help of this checklist, you will have all the information you need to expedite the registration procedure and advance your agricultural pursuits. Lawgical Adda is  here to help you receive your Farmer Producer Organisation registration easily!