Farmer Producer Company Registration in India – A Complete Guide by Company Secretary in Punjab

Farmer Producer Company Registration in India – A Complete Guide by Company Secretary in Punjab

In India’s evolving agricultural landscape, Farmer Producer Companies (FPCs) are emerging as a revolutionary solution to empower small and marginal farmers. By uniting producers under a single legal structure, FPCs enhance access to finance, technology, markets, and government support. If you’re a farmer or agricultural entrepreneur, understanding the Farmer Producer Company registration process and its benefits can transform your agribusiness future.

This comprehensive guide by Lal Ghai & Associates, a leading Company Secretary in Punjab, will walk you through everything you need to know—from eligibility to government schemes.

What is a Farmer Producer Company (FPC)?

A Farmer Producer Company is a legally recognized organization under the Companies Act, 2013, formed by farmers to conduct agricultural or allied business collectively. The goal of an FPC is to improve income, reduce risks, and ensure better market access through collective action.

Did You Know? Over 10,000 FPCs have been registered in India to date, supported by schemes from NABARD and SFAC.

Benefits of Registering a Farmer Producer Company

Here’s why thousands of farmers are choosing to register FPCs:

1. Better Market Access

  • Sell farm produce in bulk at fair prices.
  • Eliminate middlemen, ensuring direct access to buyers and traders.

2. Financial Assistance & Government Grants

  • Eligible for subsidies, low-interest loans, and equity grants under schemes by SFAC and NABARD.
  • Enjoy benefits under PM-Kisan and other central programs.

3. Tax Benefits

  • Income from agricultural activities is tax-exempt.
  • Eligible for deductions and exemptions under various government notifications.

4. Technology & Training Access

  • Get training in modern irrigation, organic farming, and digital tools.
  • Bulk procurement of inputs at discounted rates.

5. Risk Mitigation

  • Shared financial risk and collective marketing reduce price volatility.
  • FPCs foster community resilience in agriculture.

Eligibility Criteria for Farmer Producer Company Registration

  • Minimum 10 individual farmers or 2 producer institutions.
  • At least one Director must be a farmer or producer.
  • Main business must relate to farming, horticulture, animal husbandry, etc.
  • FPC must follow the limited liability model.
  • Only producers can own shares—ensuring full farmer control.

Tip from our Company Secretary in Punjab: Ensure your objectives align with agriculture to avoid issues during registration with the Ministry of Corporate Affairs (MCA).

Step-by-Step FPC Registration Process in India

Step 1: Digital Signature Certificate (DSC)

Required for all proposed Directors.

Step 2: Name Reservation

Apply on the RUN portal of MCA.

Step 3: MOA and AOA Drafting

Define the objectives and operational framework of your FPC.

Step 4: Incorporation Filing

File the SPICe+ Form along with:

  • PAN & Aadhaar of directors
  • Proof of address
  • Proof of farming activity

Step 5: Certificate of Incorporation & PAN/TAN

Once approved by MCA, your FPC will receive:

  • CIN Number
  • PAN and TAN

Step 6: Bank Account & Compliance

Open a company bank account and follow annual filing requirements.

💡 Bonus Insight: The government supports FPCs with financial grants of up to ₹15 lakh and provides collateral-free credit guarantees.

Government Schemes for Farmer Producer Companies

  • NABARD’s FPO Promotion Scheme – Financial aid for new FPCs.
  • SFAC Equity Grant Scheme – Up to ₹15 lakh in matching equity.
  • Credit Guarantee Fund – Collateral-free working capital support.
  • Formation & Promotion of 10,000 FPOs – Targeted plan to reach over 86% of small farmers by 2027.

Why Choose Lal Ghai & Associates – Top Company Secretary in Punjab?

At Lal Ghai & Associates, we specialize in:

  • End-to-end FPC registration assistance
  • Drafting of MOA/AOA
  • Filing with MCA
  • 12A, 80G, and GST registration
  • Annual compliance, audit support, and legal advisory

📍 We proudly serve clients across Ludhiana, Mohali, Gurugram, and other parts of North India.

Conclusion

Registering a Farmer Producer Company is more than just forming a business—it’s about creating a movement for rural prosperity. With legal recognition, tax benefits, and government support, FPCs are an ideal platform for Indian farmers to scale sustainably.

If you’re ready to start your FPC, consult with Lal Ghai & Associates, the most trusted Company Secretary in Punjab, to ensure a smooth, hassle-free registration experience.

📞 Call Us: 94636-40466

📩 Email: sumit@lgassociates.org
🌐 Website: www.lgassociates.org