Register a Farmer Producer Company to empower farmers through collective ownership, better market access, and organized agricultural business operations.
A Farmer Producer Company (FPC) is a special type of company registered under the Companies Act, 2013, designed to promote the collective interests of farmers, agriculturists, and primary producers. It combines the professional management and legal structure of a private limited company with the cooperative principles of mutual assistance and shared benefits. An FPC enables farmers to come together to carry out activities such as production, harvesting, procurement, processing, grading, marketing, selling, and export of agricultural produce. By operating as a registered company, an FPC enjoys a separate legal identity, limited liability for its members, and perpetual succession, ensuring long-term stability and continuity. Registration of a Farmer Producer Company requires a minimum of ten individual producers or two producer institutions as members, along with at least five directors. The structure allows members to pool resources, reduce input costs, eliminate middlemen, improve bargaining power, access institutional finance, and achieve better price realization for their produce. Farmer Producer Companies are widely encouraged by government policies due to their role in strengthening the agricultural value chain, increasing farmer incomes, and promoting sustainable rural development.
Farmers gain stronger negotiating power by operating as a unified entity.
Members’ personal assets are protected, with liability limited to share capital.
Direct access to markets reduces dependency on intermediaries.
Eligible for various government schemes, subsidies, and financial assistance.
Enables farmers to participate in decision-making and profit sharing.
Facilitates organized marketing and distribution of agricultural produce.
Enhances farmer income through value addition and scale efficiencies.
Encourages modern farming practices and long-term sustainability.
Obtain Digital Signature Certificates and Director Identification Numbers for proposed directors.
Reserve a unique name for the Farmer Producer Company through the MCA portal.
Prepare Memorandum and Articles of Association aligned with producer objectives.
File incorporation forms and receive the Certificate of Incorporation.
Discuss eligibility, member structure, and agricultural objectives.
Provide farmer member details, identity proofs, and address proofs.
Prepare MOA, AOA, and declarations specific to producer companies.
Obtain the Certificate of Incorporation and commence operations.
Registration application may be rejected.
How to avoid: Ensure minimum 10 individual producers or 2 producer institutions.
Objections from Registrar.
How to avoid: Clearly specify agricultural and producer-related activities in MOA.
Operational issues post-registration.
How to avoid: Educate members about roles and benefits of FPC.
Penalties and loss of benefits.
How to avoid: Maintain annual filings and statutory compliance.
It is a company formed by farmers to collectively carry out agricultural and producer-related activities.
Individual farmers, agriculturists, and producer institutions engaged in primary production.
Yes, surplus can be distributed among members in the form of patronage bonus or dividends.
Yes, FPCs are eligible for various government schemes and financial assistance.
Yes, an FPC is registered as a company with professional management, unlike cooperatives.
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