Farmer Producer Company Registration – An Overview

Are you a farmer or agricultural producer looking to expand your business? If yes, then registering a Farmer Producer Company is the right step for you.

If you are involved in activities like field crops, sericulture, horticulture, animal husbandry, fisheries, medicinal and aromatic plants, or apiculture, registering a Farmer Producer Company will give you legal recognition and financial benefits.

Farmer Producer Company Registration is governed under the Companies Act, 2013. Food Producer Companies (FPCs) gain access to loans and funding due to their collective strength and legal structure. Additionally, farmer producer companies with a turnover of up to 100 crores in India qualify for a 100% tax deduction.

Looking to register your agro-producer company online in India? Connect with Fastzeal’s expert consultants today and take the first step toward agripreneurship with tax benefits and extensive funding opportunities.

What is a Producer Company?

A Producer Company is a legally recognized entity formed under the Companies Act, 2013. It facilitates the production, sourcing, and marketing of agricultural goods, benefiting farmers, artisans, and rural producers. These companies operate on a cooperative model, ensuring shared ownership, better access to resources, and higher profitability for members.

Benefits of Farmer Producer Company Registration

Registering a Farmer Producer Company provides numerous advantages to agricultural producers. Here are some key benefits:

1.      Limited Liability – Members are not personally responsible for company debts, protecting their personal assets.

2.      Government Grants – Producer Companies can avail themselves of various government schemes and grants to boost growth.

3.      Separate Legal Entity – A registered company can own property, enter contracts, and engage in legal proceedings independently.

4.      Tax Benefits – Registered producer companies enjoy tax exemptions for the initial five years and lower tax rates on expenses.

5.      Capital Access – By issuing shares and debentures, companies can raise capital and attract investors.

6.      Market Reach – Registration enhances market credibility, enabling companies to expand and connect with a larger customer base.

7.      Technological Advancements – Access to modern farming technology and machinery helps improve efficiency and productivity.

8.      Easier Loan Approvals – Banks and financial institutions offer loans at lower interest rates to registered producer companies due to their credibility.

Documents Required for Farmer Producer Company Registration

To successfully register a Farmer Producer Company, the following documents are required:

1.       PAN & Aadhaar cards of directors and members.

2.       Passport-sized photographs of directors and members.

3.       Proof of registered office address (electricity bill, rent agreement, etc.).

4.       PAN, TAN, Articles of Association (AoA), and Memorandum of Association (MoA).

5.       Digital Signature Certificate (DSC) & Director Identification Number (DIN).

6.       No Objection Certificate (NOC) from the owner of the registered office.

7.       Producer certificate issued by the District Horticulture Officer.

8.       Registration certificate of the Producer Organization.

9.       Director’s consent in Form DIR-2.

Compliance Requirements for Producer Company Registration

To maintain legal status, a registered Producer Company must fulfill the following compliance requirements:

1.       Submission of annual financial statements and audit reports to the Registrar of Companies (ROC).

2.       Filing of annual returns showcasing financial and operational activities.

3.       Registration with NABARD for financial and technical support.

4.       Conducting at least four board meetings annually.

5.       Adherence to taxation norms with potential agricultural tax benefits.

6.       Conversion of cooperative societies engaged in primary production into Producer Companies under the Companies Act, 2013.

7.       Maintaining a minimum authorized capital of Rs. 5 Lakhs and paid-up capital of Rs. 1 Lakh.

8.       Allowing up to 20% of annual profits to be distributed as dividends based on shareholdings.

9.       Primary focus on production, handling, and marketing of agricultural produce.

Fastzeal Support for Farmer Producer Company Registration

At Fastzeal, we ensure a seamless and hassle-free registration process for Farmer Producer Companies in India. Here’s why agricultural producers trust us:

1.       Assisted thousands of farmers and agripreneurs in their Producer Company formation.

2.       Leading the Agro Producer Company Registration space with expertise and efficiency.

3.       Comprehensive documentation support for smooth registration.

4.       No delays in the registration process, ensuring quick incorporation.

5.       Expert business consulting for effortless online registration.

6.       Post-registration support to help you meet compliance requirements.

7.       End-to-end guidance in setting up and managing your Farmer Producer Company.