The registration of a Farmer Producer Organization (FPO) in India begins with choosing the right business structure, commonly a Producer Company under the Companies Act, 2013. To register, you must first apply for Digital Signature Certificates (DSC) for all the directors and obtain Director Identification Numbers (DIN) through the Ministry of Corporate Affairs (MCA). Next, reserve the company name using the RUN service on the MCA portal, followed by the submission of incorporation forms along with the required documents such as the Memorandum of Association (MOA) and Articles of Association (AOA). Once the Registrar of Companies (RoC) approves the application, you will receive the Certificate of Incorporation, officially establishing your FPO.
The fees for FPO registration include costs for Digital Signature Certificates, Director Identification Numbers, name reservation, and incorporation, which may vary based on the state and professional services involved.
The documents required for FPO registration include identity and address proofs of directors, PAN card, proof of registered office, DSCs, DINs, and the company’s MOA and AOA. These documents are essential for completing the registration process and ensuring compliance with legal regulations.
What is Producer Company
A Producer Company is a type of company in India established under the Companies Act, 2013, aimed at improving the standard of living and income of farmers and producers. It is formed by a group of producers (farmers, artisans, or anyone involved in agriculture-related activities) to collectively manage and market their products. The main objective is to ensure better production, procurement, and selling practices, offering producers access to a formal business structure. A Producer Company operates with a focus on benefiting its members and improving agricultural outcomes while allowing profit-making for its growth and sustainability.
Benefits of (FPO) Registration
- Separate Legal Entity: A Producer Company operates as a separate legal entity, meaning it can own assets, incur liabilities, and enter into contracts in its own name. The directors have no personal obligation toward the company’s debts.
- Loans and Investments: The government provides special provisions for loans to producer members, with NABARD (National Bank for Agriculture and Rural Development) established to offer financial support to producers and farmers through dedicated loans.
- Tax Benefits: FPOs are eligible for certain tax benefits and exemptions based on the agricultural activities they engage in, reducing the overall tax burden on the company.
- Limited Liability: The directors and shareholders of a Producer Company enjoy limited liability, meaning their personal assets remain protected in case of financial difficulties within the company.
- Acceptance of Deposits: A registered FPO can accept deposits in the form of fixed or recurring deposits, and provide loans to its members and farmers at a lower rate of interest, supporting the financial well-being of the producer community.
Producer Company Registration Process
Step 1: Obtain Digital Signature Certificate (DSC)
Since the entire Producer Company registration process is digital, obtaining a Digital Signature Certificate (DSC) is essential for the directors and subscribers. This online process involves document, video, and phone verification and can be completed within 24 hours.
Step 2: Name Approval Application
You can apply for the Producer Company’s name through the SPICE RUN form, which is part of the SPICE+ form. Ensure the name does not resemble an existing company or violate any provisions of the Emblems and Names Act, 1950. The industrial activity code and the company’s object must also be defined.
Step 3: Filing of SPICE Form (INC-32)
Once the name is approved, submit the registration details through the SPICE+ form. This form covers company details, information about members, and applications for Director Identification Number (DIN), PAN, and TAN, along with declarations by directors and professionals.
Step 4: Submission of e-MoA (INC-33) and e-AoA (INC-34)
Submit the electronic Memorandum of Association (e-MoA) and Articles of Association (e-AoA). The MoA defines the company’s objectives and powers, while the AoA outlines the management rules and regulations.
Step 5: Issuance of PAN, TAN, and Certificate of Incorporation
Once approved by the Ministry of Corporate Affairs, the company will receive its PAN, TAN, and Certificate of Incorporation. With these documents, you can open a current bank account to begin the company’s financial operations.