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“It's rare to find a service provider who makes the process feel personal - IncorpX absolutely did. From day one, they patiently explained every detail without any jargon, making it easy to understand and stress-free. There was zero chasing, no delays-just efficient, smooth execution all the way through. I felt supported, heard, and confident at every step of registering my company EIGHTH DAY FORGE (OPC) Private Limited. Thanks to Mr. Sriram and his wonderful team.”
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Kickstart your venture with efficient company setup, generally processed within a week.
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Ready to Start Your Farmer Producer Company?
Register your Producer Company with professional guidance - setup support from ₹999. Typically completed in 7 working days
HERE'S HOW IT WORKS
1. Fill the Form
Simply fill the above form to get started.
2. Call to discuss
Our startup expert will connect with you & complete legalities.
3. Register Your Producer Company
Get professional assistance with Farmer Producer Company (FPO) incorporation.
SIMPLE & TRANSPARENT PRICING
MOST POPULAR
Producer Company Registration Package
₹999 /one-time
Complete within 7 days
7-day turnaround 100% guaranteed
Incorporation Certificate
Digital Signature Certificate (DSC)
FPO Scheme Guidance
GST Registration Assistance
Director Identification Number (DIN)
Complete Documentation Support
Company PAN & TAN
Bank Account Opening Assistance
NABARD/Government Scheme Guidance
Post-Incorporation Advisory
*Government fees are additional and vary based on company structure
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IncorpX Prime
An all-inclusive solution for startups and expanding enterprises seeking a streamlined, compliant incorporation process.
Key Benefits
Personalised support from dedicated incorporation specialists.
Application prepared and filed within 2 days.
24/7 customer assistance.
Important Notes
We strive to register your preferred business name whenever feasible.
Alternative name suggestions are provided if the preferred name is not approved.
Package includes first-year compliance services: auditor appointment, annual filings, and related obligations.
Producer Company Registration is the ideal choice for farmers, agriculturists, and primary producers who want to collectively organize themselves for better market access, economies of scale, and improved livelihoods. Introduced through the Companies Act, 1956 (Part IXA) and continued under the Companies Act, 2013, Producer Companies blend the benefits of cooperative principles with the efficiency and governance of corporate structures.
A Producer Company, commonly known as a Farmer Producer Company (FPC) or Farmer Producer Organisation (FPO), is formed exclusively by primary producers engaged in activities like farming, dairying, fishing, animal husbandry, handloom, handicrafts, and cottage industries. The company can also be formed by two or more producer institutions coming together.
The Government of India actively promotes FPOs through various schemes including the Central Sector Scheme for Formation and Promotion of 10,000 FPOs, providing financial support of up to ₹18 lakhs per FPO over three years. Organizations like NABARD, SFAC, and State Governments provide handholding support, training, and credit linkages.
At IncorpX, we specialize in Producer Company Registration across India. Our team guides farmers and producer groups through the entire process - from incorporation to government scheme registration and ongoing compliance. We help you build a strong foundation for collective agricultural enterprise.
What is a Producer Company?
A Producer Company is a unique corporate structure designed specifically for primary producers - individuals or groups engaged in agricultural, allied, or cottage industries. It combines the cooperative ethos of "one member, one vote" with the professional management and governance standards of a company.
Unlike traditional cooperatives that are often plagued by political interference and inefficient management, Producer Companies operate under the Companies Act, ensuring transparency, accountability, and professional governance. The main objective is to organize farmers into collectives that can negotiate better prices, access markets directly, and add value to their produce.
A Producer Company can only be formed by primary producers or producer institutions. Primary producers include individuals engaged in any activity connected with primary produce, such as farming, animal husbandry, fishing, forestry, or handicrafts. The company must have the word "Producer Company Limited" as part of its name.
Key Characteristics of a Producer Company:
Democratic Governance:
One member, one vote principle regardless of shareholding. Every farmer has equal voice in decision-making.
Limited Liability:
Members' liability is limited to the value of shares held. Personal assets remain protected.
Collective Strength:
Farmers pool resources, share knowledge, and negotiate as a unified entity for better market outcomes.
Profit Distribution:
Profits are distributed as "patronage bonus" based on members' transactions with the company.
Did You Know?
India aims to form 10,000 Farmer Producer Organisations (FPOs) with government support of ₹6,865 crores under the Central Sector Scheme. Each FPO can receive up to ₹18 lakhs in financial assistance over three years, along with credit linkages and market access support from NABARD and SFAC.
Types of Activities a Producer Company Can Undertake:
Producer Companies can engage in a wide range of activities related to primary produce
and agricultural services. Understanding these activities helps farmers design their
FPO's business model effectively.
Production & Procurement:
Organize production of primary produce through members. Procure, grade, pool, and
handle produce from members. Manufacture, process, and preserve primary produce.
Marketing & Sales:
Market the produce of members and eliminate intermediaries. Directly sell to consumers,
retailers, and bulk buyers. Establish brand identity for collective produce.
Input Supply:
Supply seeds, fertilizers, machinery, and other inputs to members at wholesale prices.
Leverage collective buying power to reduce costs for individual farmers.
Technical Services:
Provide technical expertise, training, and education to members. Offer consultancy
services related to farming practices, quality standards, and certifications.
Credit & Insurance:
Facilitate credit access and financial services for members. Arrange crop insurance
and risk mitigation services through institutional tie-ups.
These diverse activities allow Producer Companies to create a complete ecosystem that
supports farmers from production to final sale, maximizing value at every stage.
What Are the Key Features of a Producer Company?
A Producer Company offers unique features designed to empower farmers and primary producers. Here are the standout features that make it ideal for agricultural collectives:
1. One Member One Vote
Democratic governance where each member has one vote regardless of shares held. Every farmer has equal say in company decisions.
2. Limited Liability
Members' liability is limited to the unpaid value of their shares. Personal assets of farmers remain protected from business risks.
3. Perpetual Succession
Company continues regardless of member changes. Exit or death of members doesn't affect business continuity.
4. Patronage Bonus
Profits distributed based on members' transactions with the company, not just shareholding. Active participants benefit more.
5. No Minimum Capital
No minimum authorized or paid-up capital requirement. Farmers can start with minimal investment and grow organically.
6. Government Support
Eligible for various government schemes including ₹18 lakhs financial support, credit guarantee, and market linkages.
7. Member Control
Only members can participate in company affairs. Outsiders cannot take over or control the company's direction.
8. Collective Bargaining
Unified voice for negotiating with buyers, input suppliers, and service providers. Better prices through collective strength.
9. Professional Management
Can appoint professional CEO and management team. Combines farmer ownership with professional execution.
10. Credit Access
Better access to institutional credit through NABARD, banks, and FPO credit guarantee schemes. Reduced dependence on moneylenders.
Benefits of Registering a Producer Company:
Why should farmers organize themselves into a Producer Company? It's about transforming individual struggles into collective success. Here are the compelling benefits:
Eliminate Middlemen
Direct market access for farmers. Sell directly to consumers, retailers, and exporters. Keep more profit in farmers' pockets.
Economies of Scale
Bulk buying of inputs at discounted prices. Shared infrastructure for storage, processing, and transportation.
Government Financial Support
Up to ₹18 lakhs per FPO under Central Sector Scheme. Additional support from NABARD, SFAC, and state governments.
Credit Linkages
Access to formal credit from banks and financial institutions. Credit guarantee up to ₹2 crores under NABKisan scheme.
Knowledge Sharing
Training programs, best practices sharing, and exposure visits. Collective learning improves individual farming outcomes.
Brand Building
Create collective brand identity for quality produce. Access premium markets with certified, traceable products.
Join thousands of successful FPOs empowering farmers across India with IncorpX!
Difference Between Producer Company and Other Agricultural Structures:
Understanding how a Producer Company differs from other agricultural organization structures helps farmers choose the right model. While Producer Companies offer professional governance and corporate benefits, structures like Cooperatives or Self-Help Groups serve different purposes. Below is a detailed comparison.
Producers only (min 10 individuals or 2 institutions)
Open to eligible persons
10-20 members typically
2-200 shareholders
2-50 partners
Voting Rights
One member, one vote
One member, one vote
Consensus based
Based on shareholding
As per partnership deed
Profit Distribution
Patronage bonus (based on transactions)
Based on patronage/contribution
Shared equally
Dividend on shares
Profit sharing ratio
Government Control
Minimal (professional governance)
High (state interference common)
Minimal
Moderate
Minimal
Professional Management
Can hire CEO and professionals
Limited professional management
Member-managed
Professional directors
Partner-managed
Liability
Limited to share value
Limited
Unlimited (joint liability)
Limited to share value
Unlimited
Government Schemes
Eligible for FPO schemes
Eligible for cooperative schemes
Eligible for SHG-BLP
Not eligible for FPO schemes
Limited schemes
Tax Benefits
Section 80P deductions available
Section 80P deductions
No specific tax benefits
Corporate tax rates
Individual tax rates
Best For
Farmer collectives, aggregators
Traditional cooperatives
Small savings groups
Commercial agribusiness
Small family farms
Examples
MAHAGRAPES, Sahyadri FPC
AMUL, IFFCO
Village SHGs
Agritech startups
Family farm partnerships
Pros and Cons of Registering a Producer Company:
Explore the comprehensive pros and cons of forming a Producer Company in India. This table provides an in-depth comparison of essential factors to help you make an informed decision for your farmer collective.
Aspect
Advantages
Disadvantages
Governance
Democratic structure with one member, one vote. Professional management possible with hired CEO. Less political interference compared to cooperatives.
Requires active member participation. Decision-making can be slow with many members. Need for educated leadership.
Capital Requirements
No minimum capital requirement. Farmers can start with minimal investment. Government schemes provide financial support.
Low capital may limit growth. Difficult to attract private investment. Depends on government grants initially.
Market Access
Collective bargaining power. Direct access to markets and buyers. Can create brand identity for produce.
Need for marketing expertise. Competition from established players. Building buyer relationships takes time.
Member Benefits
Better prices for produce. Access to quality inputs at lower costs. Training and knowledge sharing.
Benefits dependent on FPO success. May take time to realize returns. Requires commitment from members.
Government Support
Up to ₹18 lakhs under FPO scheme. Credit guarantee facilities. NABARD and SFAC support available.
Scheme benefits have eligibility criteria. Government support may be time-bound. Documentation requirements.
Legal Structure
Registered under Companies Act with clear governance. Perpetual succession ensures continuity. Limited liability protects members.
Compliance requirements like any company. Annual filings and audits mandatory. Cost of compliance.
Credit Access
Better access to institutional credit. NABKisan credit guarantee up to ₹2 crores. Reduced dependence on informal credit.
Credit approval depends on FPO strength. Collateral may be required. Initial credit building phase.
Operations
Flexibility in business activities. Can engage in processing, marketing, and input supply. Value addition opportunities.
Operational challenges in aggregation. Quality control across members. Infrastructure requirements.
Sustainability
Business model focused on member welfare. Long-term orientation possible. Resilient structure.
Success depends on member engagement. Leadership succession challenges. Need for continuous capacity building.
Geographic Reach
Can cover multiple villages and districts. Easier to scale compared to cooperatives. National reach possible.
Coordination challenges over large areas. Local context variations. Transport and logistics issues.
Minimum Requirements for Producer Company Registration:
Minimum 10 individual producer members OR 2 producer institutions
Minimum 5 directors must be appointed
At least one director must be an Indian resident
Members must be primary producers (farmers, fishermen, etc.)
Company name must end with "Producer Company Limited"
No minimum paid-up capital requirement
DIN and DSC required for all directors
Objects limited to producer company activities as per law
What Are the Documents Required for Producer Company Registration?
To ensure smooth Producer Company registration, all directors and members must provide proper documentation. Here is the complete checklist of documents required:
Category
Document Type
Specific Examples
Purpose
For Individual Producer Members
Identity Proof
Aadhaar Card, Voter ID, PAN Card, Passport
Establishes identity of farmer members
Address Proof
Utility Bills, Bank Statement, Aadhaar
Verifies residential address
Proof of Being Producer
Land records, Kisan credit card, agriculture income proof
Confirms eligibility as primary producer
For Directors (Indian)
Identity Proof
PAN Card (Mandatory), Aadhaar Card, Passport
Establishes identity as per Companies Act
Address Proof
Recent Utility Bills or Bank Statements (not older than 2 months)
Verifies residential address of directors
For Company Registration
Registered Office Proof
Utility Bill or Property Tax Receipt (not older than 30 days)
Verifies the registered office address
Rent Agreement / NOC
Rental agreement or No Objection Certificate from property owner
Grants permission to use premises as registered office
Memorandum of Association (MOA)
Document defining producer company objectives
Must include producer company specific objects
Articles of Association (AOA)
Governing document with producer company provisions
Includes provisions for membership, patronage bonus, etc.
For Producer Institutions
Registration Certificate
Certificate of registration of the cooperative/society
Proves legal existence of producer institution
Board Resolution
Resolution authorizing participation in Producer Company
Authorizes the institution to become member
For Digital Filing
Digital Signature Certificate (DSC)
Class-3 DSC for each proposed director
Required for signing electronic forms with MCA
Director Identification Number (DIN)
DIN for all proposed directors
Mandatory unique ID for company directors
Step-by-Step Process for Producer Company Registration
Registering a Producer Company involves specific steps designed for farmer collectives. At IncorpX, we handle the entire process while ensuring compliance with all regulations. Here is the roadmap:
Step 1: Form the Producer Group
Identify and organize at least 10 primary producers who are interested in forming the company. Conduct awareness meetings and explain the benefits of collective organization.
Step 2: Digital Signature Certificate (DSC)
Obtain DSCs for all proposed directors (minimum 5 required). The DSC is essential for signing incorporation forms digitally. We help procure Class-3 DSCs.
Step 3: Director Identification Number (DIN)
Every director needs a unique DIN. We apply for DIN for all directors through the SPICe+ incorporation form.
Step 4: Name Approval (RUN Service)
Choose a unique name ending with "Producer Company Limited". The name should reflect the nature of produce or geography. We check availability and apply for reservation.
Step 5: Draft MOA and AOA
Prepare Memorandum of Association with producer company specific objects and Articles of Association with provisions for one member one vote, patronage bonus, etc.
Step 6: Filing SPICe+ Form
File the SPICe+ form with MCA along with MOA, AOA, and all required documents. This form also applies for PAN, TAN, and other registrations simultaneously.
Step 7: Certificate of Incorporation
Upon approval by the Registrar of Companies (RoC), the Certificate of Incorporation is issued recognizing the company as a Producer Company.
Step 8: Apply for Government Schemes
Register with SFAC/NABARD for FPO scheme benefits. Apply for ₹18 lakhs financial support, credit guarantee, and other government schemes.
Get your Producer Company registered in just 7-10 days with IncorpX!
Mandatory Compliance Checklist for Producer Companies in India:
Registering your Producer Company is just the beginning. To maintain legal status, access government schemes, and avoid penalties, ongoing compliance is essential. Here's a comprehensive table of all compliance requirements:
Aspect
Compliance Requirement
Frequency
Why It's Important
Annual Return Filing
File Form MGT-7 containing details of members, directors, and activities.
Annually (within 60 days of AGM)
Ensures accurate record-keeping with MCA.
Financial Statements
Submit Form AOC-4 including balance sheet, P&L account, and auditor's report.
Annually (within 30 days of AGM)
Discloses financial position to members and regulators.
Annual General Meeting
Conduct AGM with member participation to approve accounts and elect directors.
Annually (by September 30th)
Democratic governance and member participation.
Board Meetings
Hold minimum 4 board meetings per financial year with max 120-day gap.
Quarterly
Regular oversight and decision-making.
Director KYC
Submit Form DIR-3 KYC for all directors.
Annually
Keeps director information updated with MCA.
Statutory Audit
Annual audit by a Chartered Accountant.
Annually
Ensures financial accuracy and compliance.
Income Tax Filing
File Form ITR-6 declaring income. Claim Section 80P deductions if applicable.
Annually
Mandatory tax compliance for companies.
Member Register
Maintain updated register of members with shareholding details.
Ongoing
Legal requirement and scheme compliance.
Patronage Bonus Records
Maintain records of member transactions for patronage bonus calculation.
Ongoing
Fair distribution of surplus to members.
FPO Scheme Compliance
Submit periodic reports to SFAC/NABARD/Implementing Agency.
As per scheme guidelines
Required for continued scheme benefits.
GST Compliance
GST registration if turnover exceeds threshold. File GST returns.
Monthly/Quarterly
Mandatory for trading and processing activities.
Why Choose IncorpX for Producer Company Registration?
100% Online Process: Complete registration from anywhere in India.
Affordable Pricing: Farmer-friendly rates starting at just ₹999.
Fast Incorporation: Get your FPO registered in as fast as 7 days.
Expert Support: Dedicated team with FPO expertise and rural experience.
End-to-End Service: From incorporation to government scheme registration.
Scheme Assistance: Help with NABARD, SFAC, and state FPO scheme applications.
FAQs on Producer Company Registration
Starting a Producer Company (FPO) is an excellent way for farmers to organize collectively and improve their market outcomes. With the right guidance, the registration process can be straightforward. We've compiled answers to the most frequently asked questions.
These FAQs cover everything from eligibility requirements to government scheme benefits, helping farmers make informed decisions.
Only primary producers can become members. This includes individuals engaged in agriculture, animal husbandry, fishing, forestry, handloom, handicrafts, or any activity related to primary produce. Producer institutions like cooperatives and SHGs can also become members.
A Producer Company requires minimum 10 individual producer members OR 2 producer institutions. For government scheme benefits, FPOs typically need 300-1000 farmer members depending on the scheme.
No, there is no minimum capital requirement for Producer Company registration. Farmers can start with minimal investment. Each member typically contributes a small share capital (₹1,000-10,000).
Key government schemes include:
Central Sector Scheme for 10,000 FPOs (₹18 lakhs per FPO)
NABKisan Credit Guarantee (up to ₹2 crores)
SFAC Equity Grant Scheme
State-specific FPO promotion schemes
Producer Companies follow the one member, one vote principle. Unlike private companies where votes are based on shareholding, every member has equal voting rights regardless of how many shares they hold.
Patronage bonus is the distribution of surplus to members based on their business transactions with the company, not just shareholding. Members who sell more produce through the FPO or buy more inputs receive higher bonus.
Yes, a Producer Company can appoint a Chief Executive Officer (CEO) and professional management team. This allows combining farmer ownership with professional business management.
A Producer Company requires minimum 5 directors. The Board can have a maximum of 15 directors. At least one director must be an Indian resident.
No, only primary producers can be members and shareholders. However, Producer Companies can receive grants and loans from government, NABARD, banks, and financial institutions.
Yes, Producer Companies can claim Section 80P deductions on income from marketing agricultural produce of members, supply of inputs, and providing technical services to members.
Producer Companies can engage in:
Production, procurement, grading, and pooling of produce
Manufacturing, processing, and marketing of produce
Supply of seeds, fertilizers, machinery, and inputs
Technical and consultancy services
Credit and insurance facilitation
With all documents in order, a Producer Company can be registered in 7-14 working days. This includes name approval, DSC/DIN, and incorporation.
Yes, a cooperative society can be converted to a Producer Company. However, this requires approval from the state cooperative registrar and following specific procedures under the Companies Act.
NABARD provides credit support, capacity building, and handholding. SFAC (Small Farmers' Agribusiness Consortium) provides equity grants, venture capital, and market linkages. Both are key implementing agencies for FPO schemes.
Yes, landless farmers engaged in agricultural activities (as agricultural laborers or tenant farmers) can become members. Similarly, fishermen, artisans, and others engaged in primary production are eligible.
GST registration is mandatory if turnover exceeds ₹40 lakhs (goods) or ₹20 lakhs (services). However, many agricultural products are exempt from GST.
Yes, members can exit by transferring their shares to other eligible producers or by having the company buy back their shares. The process is governed by the Articles of Association.
FPO (Farmer Producer Organisation) is a generic term for any farmers' collective. FPC (Farmer Producer Company) is specifically a Producer Company registered under the Companies Act. Not all FPOs are FPCs.
Yes, Producer Companies can access loans from banks and financial institutions. The NABKisan Credit Guarantee scheme provides guarantee up to ₹2 crores for FPO loans.
