What is FPO – Farmer Producer Organisation
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 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 Rs. 5 lakh. The procedure for forming a Producer company is similar to the one for forming a private limited company.
Incorporation of Farmer Producer Company:
According to the Companies Act, 1956; a producer company can be formed by 10 or more persons; 2 or more institutions; or by a combination of both, there is no upper limitation on the number of members. The one of the objectives for the formation of producer company should be procurement, production, harvesting, grading, pooling, handling, marketing, selling or export of the product or import of good and services for the benefit of members.
The producer company facilitates the formation of co-operatives as companies and support the co-operatives to convert into companies. The concept of farmer Producer Company seeks to foster the betterment of financially aggrieved farmers in India through synergy and collective efforts.
Documents Required for Producer Company Registration
TO BE SUBMITTED BY DIRECTORS & SHAREHOLDERS
Scanned copy of PAN Card or Passport (Foreign Nationals & NRIs);
Scanned copy of Voter’s ID/Passport/Driver’s License;
Scanned copy of Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill;
Passport-size Photograph;
Specimen signature (blank document with signature [directors only]).
