What is a Farmer Producer Company (FPC)?
A Farmer Producer Company (FPC) is a special category of company introduced under the Companies Act, 1956 (and continued under Companies Act, 2013) to help farmers collectively own and manage an agricultural enterprise. It combines the benefits of a cooperative society and a private limited company.
FPCs are owned by farmers (producers) and are aimed at improving their income through collective farming, processing, procurement, and selling.
Key Features of a Farmer Producer Company
- Only producers (farmers, agriculturists, etc.) can be members
- Minimum 10 members (individuals) or 2 producer institutions
- Minimum 5 directors
- No maximum limit on members
- Limited liability for members
- Eligible for government schemes, subsidies, and loans
Registration Process with TConBiz
Free Consultation with our experts
Digital Signature Certificate (DSC) for Directors
Director Identification Number (DIN)
Name Approval with “Producer Company Limited”
Drafting of MOA & AOA (Objects include farming & allied activities)
Filing Incorporation Forms with MCA
Get Certificate of Incorporation (COI)
Apply PAN, TAN, and Open Bank Account
Why FPC Registration is Important
FPCs give farmers collective strength to buy inputs at lower cost, sell produce at better prices, and bargain with buyers.
Registered FPCs can receive subsidies, grants, and financial support from NABARD, SFAC, and other government agencies.
With a structured business model, FPCs help eliminate middlemen and allow direct selling, improving the income of producers.
An FPC is a registered legal entity and enjoys the benefits of limited liability, legal protection, and separate identity.
In some states or under special government schemes, tax exemptions may be available for certain income or activities of FPCs.
FPCs can collectively invest in equipment, storage facilities, cold chains, and processing units, improving productivity and reducing waste.
Documents Required for FPC Registration
For All Members/Directors: PAN Card Aadhaar Card Passport-size Photograph Address Proof (Bank statement / Utility Bill) For Registered Office: Rent Agreement (if rented) NOC from the property owner Utility bill (Electricity/Water) not older than 2 months
