Farmer Producer Company Registration in India

Farmer Producer Company – Overview

FPC (Farmer Producer Company), is a hybrid between companies and cooperative societies, registered under the Indian Companies Act, 2013 with democratic governance, where each producer (member) has equal voting rights, irrespective of the number of shares held.

A Producer Company was introduced in India with the Companies Act, 2013. It gives persons engaged in activities related to producing (what has been grown or produced, particularly by farming) the opportunity to form a company. A farmer producer company can be formed by 10 or more producers (persons involved in, or in activities related to, produce or growth), two or more producer institutions or a combination of 10 or more producers and producer institutions. Such a company can only have equity capital, require a minimum of five directors and an authorised capital of ₹ 5 lakh. The procedure for forming a Farmer Producer company is similar to the one for forming a private limited company.