FPO or FPC registration
Farmer producer organization or Farmer Producer Company registration
what is fPO or FPC?
With the 2013 Companies Act, a Producer Company was made available in India. It offers those who are involved in producing (what has been grown or produced, typically through farming) the chance to establish a corporation. A producer firm can be founded by two or more producer institutions, ten or more producers (individuals engaged in, or engaged in activities connected to, produce or growth), or a combination of ten or more producers and producer institutions. Such a business must have at least five directors and an authorised capital of Rs. 5 lakh, and it can only have equity capital. A private limited business can be formed using a similar process as a producer company.
Types of producer companies
Production Business: Production, sourcing, or manufacture of any primary produce for its members (for subsequent sale to others) are the major duties of producer businesses.
Marketing Business: A corporation can qualify as a producer company even if it engages in the marketing or promotion of primary produce or offers educational services to members and others.
Technical Service Business: A producer firm may be registered if it offers producers technical support, offers education and training services, or engages in research and development.
Financing Business:Any company that finances producer operations, whether they are in the development, marketing, or production fields, is eligible to register as a producer company.
Infrastructure Business: Companies that provide producers with infrastructure, whether in the form of energy, water resources, irrigation methods, land use, or consultancy over the same, may be referred to as producer companies.
Documents required for producer company registration
To be submitted by Directors and Shareholders:
- Scanned copy of PAN Card or passport (for NRI’s)
- Scanned copy of Voter’s ID/ Passport/ driving license
- Scanned copy of latest bank statement/ telephone or mobile bill/ electricity bill
- Passport size photograph
- Specimen signature
note: The first three documents shall be self-attested by each of the Directors. All documents for NRIs and foreign nationals must be apostilled or notarized (if they are currently in India or another country that is not a member of the Commonwealth) (if in a Commonwealth country).
For the registered office:
- Scanned copy of latest bank statement/ telephone or mobile bill/ electricity bill
- Scanned copy of notarised rental agreement in english
- scanned copy of no-objection from property owner
- Scanned copy of sale deed property deed in english
- Note: your registered office need not be a commercial space; it can be your residence too
Advantages of producer company registration
Limited Liability
Any company runs the chance of being unable to cover its debts. It is an unavoidable evil. In such a case, a solo proprietor (or individual producer) would be held individually responsible for any business debts. On the other hand, because a production corporation is an independent legal entity, its members are subject to unlimited liability. As a result, only the money invested in the business would be lost; the directors' personal property would be secure.
Economies of scale
Only 15% of Indian farmers are landowners with more than two acres. Because of this, most farmers are unable to profitably take advantage of economies of scale. With the help of a producer business, several farmers can collaborate to cut expenses, lessen risk, and possibly gain access to better loan options. As a result, you can better strategize and have more clout with customers.
Better Management
Work inside a producer company can be distributed among its directors rather than being overseen by a single farmer. The Board of Management, which has a five-year term, is responsible for overseeing the organisation. A Producer business also has a distinct legal life, therefore the passing of any of its members has no bearing on it.