Complete Step-by-Step Guide to Register a Farmer Producer Company in India

Registering Farmer Producer Company (FPC) can be significant to unlocking the merits of farming and marketing collectively. In the present article, we will provide you a comprehensive guidance regarding the step-by-step to registering a farmer producer company in India. In addition, the article will discuss the eligibility criteria, farmer-producer company registration documents, and the significance of registering a farmer-producer company in India. 

Overlook on Farmer Producer Company

A Farmer Producer Company abbreviated as FPC, is a legal entity made up of the primary producers, mainly farmers of India for involving agriculture and related operations. These companies are formed to encourage the farmer’s interest and enhance their socio-economic situations. Here are certain key points regarding FPC:

• Ownership: The producers are the owners of FPCs and perform the activities, and become shareholders and directors of the Company.
• Purpose: The primitive purpose is to enhance the economic condition of farmers by giving support in several things such as marketing, processing, or production of agricultural goods.
• Credit Card Access: If a company is a registered entity, then FPCs can simply access credit and loans from financial associations. It can be used for several agricultural activities.
• Pooling resources: FPCs permit the farmers to share knowledge, pool their resources, and collectively make decisions about the strategy of marketing, planning of crops, and value addition to their produce.
• Legal Structure: Registration of producer company under the Companies Act, 2013. The Companies Act, 2013 operate as a separate legal entity, creating them eligible criteria for several schemes of government, subsidies, and incentives.
• Dividends and Profit: FPC’s profit will be shared in-between the members as per their contribution and participation in the performances. It can be in the form of reinvestment or dividends for the company’s benefit.
• Market Link: FPC provides a direct market link, eliminates the middlemen, and makes sure about the price of the farmer’s produce.
• Support of Government: The Indian government has formed several schemes, and provide incentives to help in the formation and development of FPCs. These things attract more farmers to the company. 

Eligibility criteria for registering a Farmer Producer Company in India

There are certain eligibility criteria for registering a Farmer Producer Company in India:

• Membership: The minimum number of members should be 10 to form an FPC. 
• Purpose: The company’s purpose is to promote the member’s interests. That may include several performances about agriculture, horticulture, agronomy and related services.
• Ownership: FPC ownership should be with members, and should work for their collective benefit.
• Directors: There must be a minimum of five directors and 2/3 of the directors must have shareholders of the company. 
• Geographical limitation: The performances of FPC must be concentrated within a particular area. As mentioned in the MOA make sure that the directly serves the local farmers’ interests.
• Profit Motive: The profit motive of the company is for the members who perform. The profit and benefits must be distributed among the members in proportion to their contribution to the company. 

Documents required for registering a Farmer Producer Company in India

The farmer producer company registration documents required are mentioned below:

• Directors’ recent passport-size photos.

• Address proof of registered FPC office, thus providing the lease agreement, utility bill, etc.
• Need identity cards of all directors such as a copy of voter ID, passport, Aadhar card, or driver’s license.
• Proof of residence of all directors
• Requires a Director Identification Number (DIN), and application must be submitted by all proposed directors.
• Must attain the DSCs of all proposed directors, which will be used for digitally signing documents at the time of registration.
• Form INC-1 for name approval.
• Form INC-3, takes the consent of MOA subscribers.
• Subscription’s statement and first directors, document provides the information about the MOA and first directors of the FPC.
• Draft a Memorandum of Association (MOA) and Articles of Association (AOA).
• Need to submit form INC-9 for the director’s declaration.
• File Form DIR-2 as giving consent to act as the company’s director.
• Payment of fees as per prescribed fees for several forms and registration procedures. That may depend on the number of directors and authorized capital.
• A common seal with the company’s name engraved on it. 

A step-by-step guide to registering a Farmer Producer Company in India

There a several steps needed to register a Farmer Producer Company in India:

• Pre-registration requirements: There are 10 or more primary farmers who can form an FPC.
• Approval of Name: For the name of FPC, it must be unique and different. However, it must be made sure that the name reflects your goal and the nature of the company. The company’s name availability can be checked on the Ministry of Corporate Affairs (MCA) website.
• Memorandum and Articles of Association draft: Draft an MOA and AOA, which provide the company’s purpose, performance, and guidelines. One can use the standard format given by the MCA.
• Digital Signature: Attain a digital signature for all the current directors. It will be needed at the time of filing documents online with the Registrar of Companies (ROC). 
• DIN: Directors need to apply for DIN, in case they do not have one. 
• Filing Application: Fill out the form INC-1 with ROC for the name approval, and also need to pay the prescribed fee.
• Submission and draft of a MOA and AOA
• Application for incorporation: For company incorporation, need to file a form INC-22, along with the necessary document’s submission.
• Issue an Incorporation certification: For the incorporation certification, the ROC officer should be satisfied with your application. It is proof that your FPC is now a legal entity.
• Application of Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN): With the Income Tax Department apply for a TAN and PAN number.
• Bank Account: The bank account will be open in the name of FPC, and also deposit the starting capital. 
• Commencement of business activities: With the all above-mentioned paperwork, one can begin operations in the name of FPC.
• Compliance: According to the requirements of the Income Tax Department and ROC, one must fulfil the compliances like tax returns, audits, and annual filings.
• Register under the FPC Act: One can register as per the Farmer Producer Company Act, 2002, by providing necessary documents to the authority.

Importance of registering a Farmer Producer Company in India

Registering FPC in India holds vital scenario for the agriculture sector and farmers:

• Access to capital and credits;
• Enhancement of quality;
• Efficiency in resource usage;
• Collective bargaining power;
• Risk Mitigation;
• Easy access to the market;
• Sustainability in the agriculture sector;
• Transparency and Accountability
• Farmer’s empowerment;
• Development in rural areas;
• Diversification of Income

Final Words

It is concluded that the journey of registering a Farmer Producer Company (FPC) in India plays a crucial role in advancing the collective interests of farmers. By making FPC, one not only unites the farmer’s community but also gains access to several benefits. Through this article, by contributing to the FPC, one not only prosperity but also the greater good of Indian agriculture. The FPC is a powerful force for change and shapes the future of the Indian farming system.