# Producer Company & FPO Registration

> A producer company is a company owned by primary producers — farmers, dairy farmers, fishers, artisans — under Part IA of Chapter XXI of the Companies Act, 2013. It needs at least ten individual producers, two producer institutions or a mix, and at least five directors. It carries on producer activities such as procurement, processing and marketing of members' produce, and its name ends with 'Producer Company Limited'.

Practice: Business Setup & Entity Registration — https://www.industax.com/services/business-setup/

Producer companies are the usual legal form for Farmer Producer Organisations (FPOs) promoted under government schemes. Membership is restricted to producers and producer institutions, voting is on a one-member-one-vote basis for individual members, and shares can't be traded publicly, which keeps control with the producers.

Beyond incorporation, we help the FPO set up what lenders and scheme agencies look for: member registers, share capital records, board processes, a chief executive appointment, books of account and an annual audit, along with GST, FSSAI or APMC registrations depending on the produce.

## Key facts

| Item | Detail |
| --- | --- |
| Law | Sections 378A–378ZU, Companies Act 2013 (Part IA, Chapter XXI) |
| Minimum members | 10 individual producers or 2 producer institutions (or both) |
| Minimum directors | 5 (maximum 15) |
| Name | Ends with 'Producer Company Limited' |
| Chief executive | Full-time CEO appointed by the board |

## Who needs this

- Farmer groups forming an FPO
- NGOs and agencies promoting FPOs under government schemes
- Artisan, dairy and fisheries collectives

## What's included

- Member and director documentation
- Objects clause drafted for producer activities
- Incorporation through SPICe+
- Post-registration compliance and accounting setup

## Documents

- KYC of members and directors
- Proof that members are producers (land records, dairy society records, etc.)
- Registered office proof

## Process

1. **Mobilise** — Members and directors identified and documented.
2. **Incorporate** — Producer company registered with the MCA.
3. **Operate** — GST, licences, books and audit set up.

## Also covers

- **FPO registration** — Farmer producer organisations as companies.
- **Producer company compliance** — Annual filings, AGM and audit.

## FAQs

### Is an FPO the same as a producer company?

Not exactly. FPO is a broad term for any organisation of producers; it can be registered as a producer company, a cooperative society or another form. Most FPOs promoted under central schemes are registered as producer companies because the structure is suited to collective business with limited liability.

### Can a non-farmer be a member of a producer company?

Members must be primary producers or producer institutions. A non-producer can't be a member, although the board can co-opt expert directors (up to one-fifth of the board) who don't have voting rights in the election of the chairperson.

### Does a producer company need an audit?

Yes. Like any company it must have its accounts audited by a chartered accountant, and the auditor also reports on producer-company specific matters such as loans to members and distribution of surplus.

## Official sources

- Ministry of Corporate Affairs — MCA21 portal: https://www.mca.gov.in/

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Canonical page: https://www.industax.com/services/business-setup/producer-company-registration
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.