FPC FORMATION

FPC FORMATION

A Farmer Producer Company (FPC) is a corporate body registered under the Companies Act, 2013, created to help agricultural producers manage and market their produce collectively. The formation and registration process is completed online through the Ministry of Corporate Affairs (MCA) portal and requires a minimum of 10 primary producers. 

Step-by-step registration process

Step 1: Check eligibility
The following conditions must be met for a group to register as an FPC: 

• Minimum members: The company must be formed by at least 10 individual farmers or two producer institutions.
• Primary producers only: All members must be engaged in farming or allied activities, such as cultivation, horticulture, dairy, or fisheries.
• Minimum directors: At least five directors are required. 

Step 2: Gather documents
Collect all necessary documents for the proposed directors and members, including: 

• PAN and Aadhaar card copies.
• Address proof (bank statement or utility bill, no older than two months).
• Passport-sized photographs.
• Proof of the registered office address (rent agreement and a No Objection Certificate from the owner, or ownership documents).
• A self-declaration from each member confirming their status as a primary producer.
• Proof of producer activity, such as land records or a certificate from a competent authority. 

Step 3: Obtain DSC and DIN 

• Digital Signature Certificate (DSC): At least one director must obtain a Class 3 DSC to digitally sign the online incorporation documents.
• Director Identification Number (DIN): Apply for a DIN for all proposed directors. 

Step 4: Reserve a company name 

• File the integrated SPICe+ Form, Part A, on the MCA portal to reserve a unique name for the company.
• The name must end with the words "Producer Company Limited". 

Step 5: Draft the MOA and AOA 

• Memorandum of Association (MOA): Draft this document to specify the FPC's objectives, which must be related to primary produce.
• Articles of Association (AOA): Draft this document to define the company's internal rules and regulations, including governance and membership. 

Step 6: File for incorporation 

• Submit the integrated SPICe+ Form, Part B, on the MCA portal, along with the MOA, AOA, and all other necessary attachments.
• Pay the government filing fees online. 

Step 7: Receive the Certificate of Incorporation 

• The Registrar of Companies (ROC) will verify the application.
• Once approved, the ROC will issue a Certificate of Incorporation and a Corporate Identification Number (CIN) for the FPC. 

Step 8: Complete post-incorporation formalities 

• PAN and TAN: These numbers are often generated automatically with the incorporation.
• Bank Account: Open a bank account in the FPC's name.
• GST Registration: Register for Goods and Services Tax if the annual turnover exceeds the threshold. 

Compliance requirements

• Annual filings: FPCs must file their financial statements and annual returns with the MCA.
• Meetings: Conduct regular board and annual general meetings.
• Audits: Appoint a statutory auditor to conduct regular audits.