Benefits of Farmer Producer Company & Features

In India, more than 15% of farmers commit suicide each year, and the Indian government has set up a team of experts to investigate the issue. As a result, the Farmer Producer Company was formed.

Agricultural production corporations are groups of farmers who come together to increase their income and improve their living standards. In India, 10 members and he can set up a production company with only two bodies. A minimum share capital of Rs 5 million is required for the registration of a manufacturing company.

Features of Producer Company

  • A Producer Company may only produce, source, harvest, sort, bundle, market, and trade commodities with the help of its members.
  • We may also raise funds for our members to participate in these activities by offering a credit facility.
  • Can only operate with members and cannot contact the public directly. However, with a little paperwork and a simple process, you can add members to your producer company.
  • Each producer receives a portion of the profits and the remaining funds are used for reserves or capital sharing.
  • Furthermore, the only type of organization that can register a lending company in India without RBI approval is the registration of a producer company.
  • Established by groups of farmers for agricultural or non-agricultural activities is a registered agent and corporation.
  • Company producers are shareholders of the company.
  • Corporations engaged in the business of manufacturing basic materials. Our company is engaged in business related to the production of primary products.
We will endeavor to protect the interests of our members and promote the interests of our production members.

A producer Company is a hybrid of a corporation and a cooperative. It combines the qualities of a cooperative with the vitality and efficiency of the company and takes into account the characteristics of a cooperative company with a company-like regulatory framework.

Benefits of Registering a Farmer Producer Company

Limitation of Liability

Fpo registration gives you a separate legal entity. In other words, from the company's point of view, you and the company's members are legally separate identities. It, therefore, offers the advantage of limited liability.

Improving Credibility

Producer Associations give farmers more legitimacy than other unregistered farmers or cooperatives.

Accepting Deposits

Corporations may accept "one-time" or "recurring" deposits as deposits. In addition, we have the opportunity to offer loans to farmers and members at very favorable interest rates.

Ownership of Property

Properly registered agricultural businesses are permitted to buy, sell or own property in their own name. It also has the right to accept deposits or provide relatively low-interest loans to agricultural members.

Easy Administration and Registration 

The process of becoming a manufacturing company is straightforward, allowing companies to make board changes by simply submitting a few simple forms to the relevant ROC.

Due to a lack of facilities and fragmentation of land tenure, most Indian farmers struggle to get the best value for their staple crops. to obtain inputs at the lowest cost, adopt new technologies, easily access credit and finance, establish direct links with markets, and develop post-harvest processing plants. I'm here.

Farmer Producer Company is a group of farmers who have come together to improve their quality of life and improve their lifestyle. Forming an Agricultural Producer Company gives the company a separate legal personality and gives the company many tax breaks and benefits. In addition, members have many benefits such as B. Bonuses, easy access to low-interest loans, etc.

Digitization has made it easier for farmers to register. Many companies specialize in registering and managing manufacturing companies. Vakilsearch is one of them, a platform that provides services to meet the legal requirements of Indian manufacturing companies. If you are considering registering a Farmer Producer Company, contact Vakilsearch to make the process easier.

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