Indian economy majorly depends on agriculture, during the year 2002, the government of India introduced a business concept called Producer Company with the main objective as to facilitate the formation of co-operative business as companies. Producer companies can help small formers to participate in emerging-high value markets such as export market and the retail markets in India. The Producer Company is one of the business entity registered under the Companies Act, 2013.

• It's main objective is of production, harvesting, procurement, grading, pooling, handling, marketing, selling, and export of primary produce of the Members or import of goods or services for their benefit provided that the producer company may carry out the aforesaid activities either by itself or through any 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.

• 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 above activities 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 above activites which include extending of credit facilities or any other financial services to its Members.

• Produce of farmers, arising from agriculture (including animal husbandry, horticulture, floriculture, pisciculture, viticulture, forestry, forest products, re-vegetation, bee raising and farming plantation products), or from any other primary activity or service which promotes the interest of the farmers or consumers. or

• Produce of persons engaged in handloom, handicraft and other cottage industries.

• Any product resulting from any of the above activities, including by-products of such products.

• Any product resulting from an ancillary activity that would assist or promote any of the aforesaid activities or anything ancillary thereto.

• any activity which is intended to increase the production of anything referred to in above or improve the quality thereof.

• Producer means any person engaged in any activity connected with or relatable to any primary produce.

Any ten or more individuals, each of them being a producer or any two or more Producer Institutions or a combination of ten or more individuals and Producer Institutions can form a Producer Company under the Companies Act, 2013. Producer Company Registration is regulated by the Central Registration Center (CRC), Manesar, Haryana on behalf of each state jurisdictional Registrar of Companies, Ministry of Corporate Affairs, Government of India. The governing law for the producer companies is Companies Act, 2013. The name of the producer company should be ended with "Producer Company Limited". Every producer company shall have at least five directors and not more than fifteen directors.

The Government of India had announced on 26th January, 2018 that there is zero incorporation fee for the Companies registered with an Authorized Share Capital up to of Rs. 1,000,000/- (Rupees Ten Lakhs), subsequently it had been increased to Rs. 15 lakhs. The remaining fee such as Name Availability, Stamp Duty, Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN) is applicable as usual.

Best for FARMERS & AGRICULTURISTS with the aim to improve their standard of living by directly entering into the market without the intervention of Middle Man.

The Farmer Producer Company (FPC) registration in India is entirely online. If you’re looking to make your producer company registered, then CompaniesHouse is the team for you. Register your producer company online with us today and you’ll be on your way to operating a registered company under 1 week.

Directors	Five Directors
Shareholders	Ten Shareholders
Authorised Share Capital	Rs.500,000
Paidup Share Capital	Rs.500,000

• Five directors and Ten shareholders are rquired. The directors and shareholders may be the same persons. They should be majors. The director must be an Individual whereas the shareholder may be the body corporate. One of the directors must be resident Indian. However, Foreign Exchange Management Act sectoral caps are applicable.
• Authorised Share Capital is the amount up to which, you can invest in the company as share capital.
• Paidup Share Capital is the amount up to which, you can deposit in the Company's Bank Account towards Share Capital.

• A

  Directors Documents

  1. Directors PAN
  2. Directors ID Proofs
     Aadhaar Card or Voter ID or Passport or Driver's License
  3. Directors Address Proofs:
     Latest one month Savings Bank statement or
     Latest Telephone Bill on his own name or
     Latest Moblie Bill on his name or
     Latest Power Bill on his own name.
  4. Directors latest passport size photograph
  5. Directors Email ids
  6. Directors Mobile Numbers linked with their Aadhar
  7. Incase of Foreign direcrtors, International Passport is mandatory
• B

  Company Documents

  1. Registered Office Address Proof: Latest Power Bill
  2. No-objection letter from the Landlord.
  3. Rental Agreement from the landlord if the premises are rented.
  4. Company email id.

Now the Farmer Producer Company can be registered simply in 4 Steps. Below is the 4 step Producer Company Registration process.

• 1

  Preparatory arrangements for Producer Company

  Through the Director - Depends on the Interest

  (1) Identify a cluster where the Producer Company can be formed.

  (2) Baseline and Feasibility Studies to ensure that a viable Producer Company can be formed in the cluster. Plan for business activities that are possible to improve the incomes.

  (3) The primary producers or Farmers and introduce the concept of Producer Company to them.

  (4) Explore the need for a Producer Company with the primary producers. The primary producers should understand the benefits and feel the need for it.

  (5) Create a critical group of primary producers, who are very enthusiastic about the idea of Producer Company and empower them further with the concept and details and benefits of a producer company.

  (6) Allow enough time to the prospective primary Producer Company members to understand the idea. Make frequent visits to them and clarify all their doubts. The objective should be that the prospective members have right understanding, and willing to participate and work together for their mutual benefit.

  (7) Once the primary producers are willing to form a Producer Company and are ready to contribute to the share capital, Identify the Promoter Directors and collect their KEY Documents and approach CompaniesHouse.

• 2

  Digital Signature Certificates

  Through eMudhra - One Hour Job

  Producer Company registratoin in India is entirely online. To register a Producer Company, the Shareholders of the Company have to sign documents digitally using Class-III Digital Signature Certificate (DSC). We will apply Class-III DSCs through eMudhra or other Digital Signature Certificate provider Online. We will attest and submit your documents with eMudhra or other Digital Signature Certificate provider and get your DSCs approved and download the same for signing purpose. Apart from Shareholders, a practicing professional such as Company Secretary or Chartered Accountant has to mandatorily digitally sign and attest the documents to get your Producer Company Incorporated. We also get this done with our associated CA/CS professionals.

• 3

  Incorporation

  Through MCA Portal - 5 to 7 Days

  Once the DSCs are approved, we will then draft the By-Laws and Articles of the Producer Company and prepare the Producer Company Incorporation documents (ie. eSpice+ PartB, eSpice MOA, eSpice AOA, Form DIR-2, Form INC-9, eAGILE Form, Directors KYC documents, NOC and other declarations as may be required) and once you give confirmation from your end to upload with the MCA, we will do that by paying requisite challan amount online.

• 4

  Certificate of Registration

  Through eMail - 1 Day

  Once we upload and pay the incorporation challan amount to MCA, the Registrar of Companies will go through your application and after due scrutiny, approves the same and issues you the Certificate of Incorporation online through your registered email address.

Certificate of Incorporation (CIN)	Memorandum of Association (MOA)
Articles of Association (AOA)	Company PAN & TAN
Digital Signature Certificates (DSC)	Director Identification Numbers (DIN)
GST Registration (GSTIN)	MSME Registration (UDYAM)
PF Registration	ESI Registration
PT Registration*	Shops & Establishment Registration**
GST Software	Share Certificates

* PT Registration is available in the states of Maharashtra, Karnataka & West Bengal only

** Shops & Establishment Registration is available in the state of Delhi only

Company Bank Account Opening:

Now, the Ministry of Corporate Affairs (MCA) is giving automatic Company Bank Account along with the Certificate of Incorporation in any one of the following banks (ie. Punjab National Bank, ICICI Bank, Kotak Mahindra Bank, Bank of Baroda, HDFC Bank, State Bank of India, Union Bank of India, IndusInd Bank or Axis Bank). You have to select any one of the bank as listed and this is mandatory. If you do not wish to open bank accounts in eigther of these banks, you can open your bank account separately once you get the Certificate of Registration and other incorporation documents such as MOA, AOA and Company PAN. No amount is required to get the bank account opened in these banks. Once you get all documents, you can then submit KYC with the bank and deposit the Sharecapital amount.

Company PAN & TAN:

The Company PAN & TAN will also be generated simultaneously along with the Certificate of Incorporation. You are not required to apply for it separately. You will only get password protected ePAN & eTAN at the time of Company Incorporation and if you want physcal PAN & TAN, again you need to separately apply for it by paying the applicatiton fee at PAN application center or online. This ePAN & eTAN are sufficient to get other supporing licenses and run your business. The password to open ePAN is the date of registration and the PIN code of the Company Registered office for eTAN.

GST Registration:

Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees*:

Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees**.

* This limit is increased to Rs. 40 Lakhs w.e.f 1st April 2019 for all states except the State of Telangana. Special category states ie. Jammu and Kashmir, Ladakh and Assam also opted Rs.40 lakhs limit.

** This limit is increased to Rs. 20 Lakhs w.e.f 1st April 2019 for Special Category States.

We help registering your business under GST by making application online subsequent to the business formation. This GST Registration in India is online and subject to approval with the GST Officer. Normally, with in 4 to 5 days, you will get your GSTIN and some times it may be delayed due to various reasons.

Fertilizer License:

If the Proucer Company manufactures fertilizers, then it has to make an application for seeking the Fertilizer License before Controller of Fertilizers, Ministry of Chemicals.

AGMARK Certification:

To get the Quality Standard Certification for an agricultural produce or product, the company has to make an application for granting AGMARK Cetification before the Office of the Directorate of Marketing and Inspection (DMI). They can file application online at www.dmi.gov.in.

SPICE BOARD Certification:

A Farmer Producer Company is required to get SPICE BOARD Certification to export the Spices.

FSSAI Registration:

If your business deals in Food, Food Items you need to apply for Food License with Food Safety and Standards Authority of India.

Import Export Code (IEC):

Import Export Code (IEC) is required to be taken if you deal in Import or Export of Goods of Services.

Professional Tax Registration:

Professional Tax is Mandatory for the Companies registered in India. For all states it is not mandatory and infact only for 17 states it is mandatory.

Shops & Establishments Registration:

Shops & Establishments registration is mandatory to register with the concerned State Labour Department.

MSME Registration:

To avail the benefits under The Ministry of Micro, Small & Medium Enterprenuers Act, it is mandatory to get registered under this Act.

Compliance:

Once you register your Producer Company, you need to file certatain periodic documents with the Registrar of Companies, GST department, Income Tax Department and Other Statutory Department online by paying requisite fee. Apart from filing documents, you need to maintain certain records, registers and maintain books of accounts. You need to prepare the Producer Company financials such as Profit & Loss Account, Balance Sheet, Shedules to Accounts, Notes to Accounts, Directors Report etc. You also need to prepare resolutions and minutes of meetings of the board of directors and members of the Company. Our team of experts will assist you in getting all these compliances done at an affordable cost.

Fund Raising & Tax Planning:

Our team of experienced Chartered Accountants & Company Secretaries will help you get funds to run your business by preparing project reports, business plans, term sheets & Share Purshase Agreements etc. We also help you pay less tax to the government through a proper tax planning.

Limited Liability:

The liability of the members of the Company is limited. The Directors or Shareholders are not personally liable for the debts of the Company. For example, when Company is in default of repayment of debt or loan, there is a protection to the personal assets of the Directors or Shareholders. They can recover the loan amount only by selling the assets of the Company.

Small Farmers Agribusiness Consortium (SFAC):

SFAC operates a Credit Guarantee Fund to mitigate credit risks of financial institutions which lend to the Farmers Producer Companies without collateral. This helps the FPCs to access credit from mainstream financial institutions for establishing and operating businesses.

SFAC provides matching equity grant up to Rs. 10 lakh to the FPCs to enhance borrowing power, and thus enables the entities to access bank finance.

NABARD Support:

NABARD set up 50 crore Producer Organisation Develop Fund (PODF) for the development of the Producer Companies in India. This fund will support the producer companies by providing credit support, improving marketing capacity and infrastructure facilities in the floowing ways:

• Lending to Farmer Producer Companies for contribution towards share capital on matching basis (1:1 ratio) to enable the Producer Companies to access higher credit from banks. This is a loan without collateral which will have to be repaid by the Producer Companies after specified time. The maximum amount of such assistance is Rs. 25 lakh per PO with a cap of Rs. 25,000 per member.

• Credit support against collateral security for business operations. Also, credit support without collateral security for business operations to Farmer Producer Companies which are eligible under Credit Guarantee scheme of Small Farmers Agribusiness Consortium (SFAC). The credit product can be customised as per requirement of the business. In general, credit support is available for business activities and creation of assets like building, machinery, equipment, specially designed vehicles for transportation and the working capital requirements including administrative and other recurring costs connected with the project as composite loan. Capital expenditures like purchase of land, vehicles for general transportation & personal use will not be considered for support.

NABARD also provides technical, managerial and financial support for hand-holding, capacity building and market intervention efforts of the Producer Companies. Such support is available in the form of grant, loans, or a combination of the two based on the need of the situation, and is available only to those Producer Organisations which avail credit from NABARD. Capacity building support will not be given in isolation in general. It would essentially be a part of the overall project having loan component. Grant, if any, will be maximum 20% of the loan amount. Capacity building should broadly cover any activity relating to functioning of a producer organization.

Government of India Support:

Government of India provides budgetary support to Small Farmers Agribusiness Consortium (SFAC) for its Equity Grant and Credit Guarantee Fund Scheme for the Farmer Producer Company. For creation of storage and other agricultural marketing infrastructure under the Integrated Scheme for Agricultural Marketing (Ministry of Agriculture, Government of India), Farmer Producer Companies are eligible to get higher subsidies. Ministry of Rural Development also operates schemes through which support for some activities can be obtained by the Farmer Producer Companies. Training institutions supported by the Ministry or Rural Development, Government of India also impart skill and capacity building training which can be made use of by the Producer Companiesfor its members.

Management Support:

Indian farmers know how to produce the primary agricultural produce but they fail in how to market it. In producer company, the farmer members may appoint experienced personnel in marketing as Directors and market their products at higher rates thereby they get more revenue. So each member will get benefited by having experienced marketing support personnel.

Income Tax Benefits:

The Income Tax Act, 1961, specifically exempts tax on agricultural income under Section 10(1). However, the exemption for such agricultural income shall sometimes vary depending upon the kind of agricultural activity carried on. It is to be noted that though the IT Act does not per-se give any special benefits or exemptions to Producer Companies as such, but depending upon the kind of agricultural activity it carries on, certain tax benefits can be availed.

Dividend tax at the applicable rates is required to be paid by the Company at the time of patronage bonus, limited return distribution and the same will be tax free in the hands of the members. Bonus shares will not attract any tax in the hands of the members at the time of allotment, however at the time of sale or redemption necessary provision of capital gain tax shall apply.

As an Official Company Registration Agent, we have built strong ties with the Ministry of Corporate Affairs, Govt of India since our own formation. Since we began, our goal has been to provide a seamless incorporation process that is quick and simple to use. Today, our company registration system is one of the most effective and efficient in India. In just over 5 minutes you can submit your new company name application, and often in just 3-5 days, your company will be fully registered. We also keep our company formation pricing competitive, while always exploring innovative ways to provide value to our customers. We are pleased to be one of the most affordable ways to start a company in India.

We have the expertise to advise which is the correct corporate structure they need to put in place. Most customers come to us for help registering a company limited by shares. The limited company structure is popular as it allows profits to be distributed amongst the shareholders while at the same time protecting them through the limited liability aspect. Our team has well over 20-years of combined expertise forming companies and providing corporate and secretarial services that help thousands of our clients grow their businesses each year.

We are incredibly passionate about the quality of our service, and we are incredibly proud of our customer feedback, as shown by our excellent reviews and ratings. Time and time again, we are selected for the value and expertise that our team is known for. We have helped shape the industry by providing innovative business services and bundled packages that have evolved alongside the needs of our customers.

Our clients have access to free support from an expert team. We are always on standby to help. If you need assistance at any point before, during, and after the registration of your company, you will be able to reach us by telephone or email.