India's one of the highest-rated legal tax and compliance guidance platform.
4.9 out of 5 (8521+ ratings)
Verified
Siddhu ManojFounder & CEO of Two-LYP Computations Pvt. Ltd.
“Incorporating my Startup with IncorpX was an incredibly smooth and hassle-free experience. The team was highly professional, guiding us every step of the way with clear communication and prompt support. The registration process was fast, and every detail was handled with precision and accuracy. Highly recommend IncorpX for anyone starting a business.”
Abhishek LohaniDirector at Lohani Learnings
“Company is good and service is also smooth. I used their compliance service and the response was timely with no delay and price are also convenient. They are always available to cater your need.”
Chandan Kr. ChaudharyFounder of Creative Minds
“I am very satisfied with the team of IncorpX for providing the top notch services. Team of IncorpX was giving the update on daily basis was one of the best thing which I experience in Corporate. keep doing it. Thank you!”
Jayavijaya SJFounder of Agro Farms
“Don't think twice.Got my company incorporates here. Tbh very impressed by the quality of service provided by this team. Very organized and friendly team. Had a smooth and peaceful experience. Timely regular updates were provided by the team. Overall a great experience.”
Anoop KrishnanFounder of EIGHTH DAY FORGE
“It's rare to find a service provider who makes the process feel personal - IncorpX absolutely did. From day one, they patiently explained every detail without any jargon, making it easy to understand and stress-free. There was zero chasing, no delays-just efficient, smooth execution all the way through. I felt supported, heard, and confident at every step of registering my company EIGHTH DAY FORGE (OPC) Private Limited. Thanks to Mr. Sriram and his wonderful team.”
Ramesh LankeFounder of EKnal Technologies
“IncorpX made the entire registration process for our company, EKnal Technologies, smooth and stress-free. Their team was professional, efficient, and incredibly supportive from start to finish. Highly recommend them to any founder looking for a reliable partner in their business journey! Special shoutout to Sriram and Aswin-your support, clarity, and responsiveness made the whole process incredibly smooth.”
700+
Businesses Incorporated Every Month
1000+
Ratings Trusted by 2000+ Clients
250+
Professional Network
Why Choose Us
Why Choose Us?
Expert Legal Team
Experienced legal experts in company formation and corporate law.
Fast Turnaround
Kickstart your venture with efficient company setup, generally processed within a week.
Dedicated Support
Personal manager by your side, every step of the way and beyond.
Complete Documentation
We handle all paperwork and ensure full legal compliance.
Business Growth Tools
Free business resources to fuel your company's success from day one.
24/7 Customer Service
Round-the-clock assistance for all your concerns.
Ready to Register Your Producer Company?
Start your FPO incorporation with expert CA/CS assistance. Complete SPICe+ V3 filing from ₹14,999. Typically completed in 12 to 18 working days with zero rejections.
Simple Process
Here's How It Works
01
Fill the Form
Simply fill the above form to get started.
02
Call to discuss
Our startup expert will connect with you & complete legalities.
03
Register Your Producer Company Online
End-to-end professional assistance with Producer Company incorporation via SPICe+ V3 on the MCA21 V3 portal.
Pricing
Simple & Transparent Pricing
MOST POPULAR
Producer Company Registration Package 2026
From ₹14,999 one-time professional fee
Complete within 7 days
7-day turnaround 100% guaranteed
Certificate of Incorporation (CoI) with CIN
Digital Signature Certificate (DSC) for 5 Directors
MoA (INC-33) with All 11 Sec 378B Objects
AoA (INC-34) with Producer Governance Clauses
Producer-Status Declarations for All Members
EPFO + ESIC + GST Registration via AGILE-PRO-S
Company PAN and TAN
Bank Account Opening Assistance
SPICe+ V3 Filing and Complete Documentation
NABARD/SFAC Alignment and Sec 80PA Tax Review
*Government fees are additional and vary based on company structure
4.9/5 based on 1000+ reviews
Money back guarantee
Secure payment
Top rated service
AI-Powered Platform
Meet IncorpX Nova
Our proprietary AI engine streamlines every step of business setup, from intelligent name suggestions to automated document drafting and compliance tracking.
AI-Powered Business Name Approval Check
Auto-Generated MoA & AoA Drafts
Real-Time Compliance Monitoring
3x Faster Processing Than Traditional CAs
24/7 AI Chatbot + Human Expert Support
NOVA AI
Premium Plan
IncorpX Prime
An all-inclusive solution for startups and expanding enterprises seeking a streamlined, compliant incorporation process.
Key Benefits
Personalised support from dedicated incorporation specialists.
Application prepared and filed within 2 days.
24/7 customer assistance.
Important Notes
We strive to register your preferred business name whenever feasible.
Alternative name suggestions are provided if the preferred name is not approved.
Package includes first-year compliance services: auditor appointment, annual filings, and related obligations.
FPO (Farmer Producer Organisation) is the umbrella functional term used by the Ministry of Agriculture, NABARD and SFAC for any farmer-collective enterprise. A Producer Company registered under Sections 378A to 378ZU of the Companies Act 2013 is the most common legal form of an FPO. About 85% of NABARD-promoted FPOs are Producer Companies.
If a government scheme document, NABARD circular or district agriculture office mentions "FPO", it is referring to an entity that can take one of three legal forms: (a) a Producer Company under the Companies Act 2013, (b) a Cooperative Society under the relevant state cooperative act, or (c) a Producer Co-operative under certain state-specific statutes. In practice, the Producer Company form dominates because it offers pan-India operation, limited liability, corporate governance and direct access to SFAC and NABARD funding.
Under the NABARD 10,000 FPO Scheme (launched 2020-21), Cluster-Based Business Organisations (CBBOs) are empanelled to form and support FPOs across all 28 states and 8 Union Territories. More than 85% of FPOs registered under this scheme have chosen the Producer Company structure. If you are searching for "FPO registration" or "farmer producer organisation registration", you are looking for Producer Company registration under Sec 378A.
What is a Producer Company?
Key Takeaways: A Producer Company requires minimum 10 producer members (or 2 producer institutions) and 5 directors. Registration via SPICe+ V3 takes 12 to 18 working days. Total cost: ₹25,000 to ₹35,000 (varies by state and director count). IncorpX professional fee: ₹14,999. Minimum paid-up capital: ₹5 lakh under Sec 378C(1). MCA incorporation fee: nil (waiver applies).
A Producer Company is a corporate legal entity registered under Chapter XXI-A, Sections 378A to 378ZU of the Companies Act 2013. It is formed by at least 10 individual primary producers or 2 producer institutions, with minimum paid-up capital of ₹5 lakh, to undertake production, procurement, marketing or processing of agricultural produce. Unlike a Private Limited Company, a Producer Company operates on the principle of 1 member = 1 vote and distributes surplus through patronage bonus rather than unlimited dividends.
The Producer Company provisions were originally introduced as Part IX-A of the Companies Act 1956 based on the Y.K. Alagh Committee recommendations. The Companies (Amendment) Act 2020, notified on 11 February 2021, migrated these provisions to Chapter XXI-A (Sections 378A to 378ZU) of the Companies Act 2013. Any registration advice still citing the 1956 Act is outdated and unreliable. Sec 378A defines "producer" broadly to include persons engaged in farming, horticulture, animal husbandry, pisciculture, bee-keeping, forestry, handicrafts, handlooms, khadi, village and cottage industries, and ancillary activities.
The entire registration process runs through the MCA21 V3 portal using SPICe+ V3. Unlike a Section 8 Company, a Producer Company can distribute limited returns on share capital (capped at 20% under Sec 378ZJ) and pay patronage bonus to its members under Sec 378D.
IncorpX's CA/CS team files Producer Company SPICe+ applications across 22 states with zero resubmission rates. This page covers the complete registration process, eligibility criteria, cost breakdown with state-wise stamp duty, Sec 80PA taxation, NABARD and SFAC funding access and annual compliance requirements for FY 2025-26.
Companies Act 2013, Chapter XXI-A (Sec 378A to 378ZU)
Regulator
MCA (mca.gov.in)
Processing Time
12 to 18 Working Days
Government Fee
Nil (Producer Company waiver)
Professional Fee (IncorpX)
Starting ₹14,999
Min Members
10 producers or 2 producer institutions
Min Capital
₹5 lakh paid-up (Sec 378C(1))
Producer Company vs Cooperative vs Pvt Ltd vs Section 8 vs Traditional FPO
Farmer collectives often debate whether to register as a Producer Company, Cooperative Society, Private Limited Company, Section 8 Company, or a traditional (unregistered) FPO. The table below compares all five on 16 criteria.
Free entity comparison consultation. We help you pick the right structure for your farmer collective.
Eligibility and Minimum Requirements
Only primary producers or producer institutions can form a Producer Company. Section 378C(1) sets the eligibility thresholds below. If your group does not meet the primary-producer definition, consider a One Person Company (OPC) or Private Limited Company instead. Need to appoint additional directors? IncorpX handles director appointments post-incorporation.
Requirement
Value
Citation
Minimum Individual Producers
10
Sec 378C(1)
Minimum Producer Institutions
2 (alternative to 10 individuals)
Sec 378C(1)
Maximum Members
No cap
Sec 378C
Minimum Directors
5
Sec 378M
Maximum Directors
15
Sec 378M
Resident Director
At least 1 (182+ days in India)
Sec 149(3)
Minimum Paid-up Capital
₹5 lakh
Sec 378C(1)
Minimum Authorised Capital
₹5 lakh
Sec 378C(1)
Full-time CEO
Mandatory
Sec 378W
Name Suffix
"Producer Company Limited"
Sec 378A
Myth Buster: Many competitor websites state minimum paid-up capital is ₹1 lakh. This is incorrect. The correct figure is ₹5 lakh under Sec 378C(1) of the Companies Act 2013. The ₹1 lakh figure was from the now-repealed Part IX-A of the Companies Act 1956.
Who Qualifies as a Producer: Sec 378A defines a "producer" as any person engaged in farming, horticulture, animal husbandry, pisciculture, bee-keeping, forestry, handicrafts, handlooms, khadi, village and cottage industries, by-products of these activities, or ancillary activities. Corporate entities or individuals without primary-producer status cannot be members.
Documents Required for Producer Company Registration
Prepare these documents before starting the SPICe+ filing. All uploads must be colour PDF scans, under 2MB per file. Producer Company registration needs additional producer-specific documents that a standard Pvt Ltd does not require.
For Directors and Members (Individual Producers):
PAN Card (self-attested colour scan; mandatory for all directors and producer members)
Aadhaar Card (for OTP verification during DSC and SPICe+ filing)
Passport-Size Photograph (recent colour photo, white background, JPEG format)
Address Proof (Voter ID, driving licence or passport; valid and current)
Utility Bill (electricity or water bill not older than 2 months)
Bank Statement (bank statement or passbook front page not older than 2 months)
For Registered Office:
Ownership Proof or Rent Agreement with NOC from owner
Utility Bill (electricity, water or gas bill not older than 2 months)
Municipal Tax Receipt for the registered office premises
Producer-Specific Documents (unique to Producer Company):
Producer-Status Declaration from each member confirming primary-producer status with land records, farmer ID or cooperative membership proof
Producer Member List with landholding details, crop or activity type
Producer Institution Registration Certificate and Board Resolution (if institutions are founding members)
CEO Particulars per Sec 378W (full-time CEO appointment details)
INC-9 Declaration (subscriber affidavit, auto-generated by SPICe+)
Upload all documents as clear, colour-scanned PDFs. Black-and-white scans and photographs of documents are a common cause of MCA resubmission. The name on PAN, Aadhaar and bank statement must match character-for-character. A single mismatch triggers resubmission, adding 3 to 7 working days.
7-Step Registration Process (SPICe+ on MCA V3)
The complete SPICe+ V3 process takes 12 to 18 working days and costs ₹25,000 to ₹35,000 total (including government fees and professional fee). All 7 steps below are filed through the MCA21 V3 portal. Based on our filing experience, clean submissions with correctly scanned documents typically clear MCA processing within 14 working days.
Milestone
Working Days
DSC Procurement (5 directors)
1 to 2
Name Reservation (SPICe+ Part A)
1 to 3
MoA and AoA Drafting
2 to 3
SPICe+ Part B + AGILE-PRO-S Filing
1
MCA Processing and CoI Issuance
5 to 10
Total
12 to 18
Step 1: Obtain DSC for All Proposed Directors
Procure Class 3 Digital Signature Certificates with 2-year validity for all proposed directors (minimum 5). DSC is mandatory for digitally signing SPICe+, INC-9, DIR-2 and AGILE-PRO-S forms. Each DSC requires video-KYC with PAN and Aadhaar. Processing takes 1 to 2 working days. Cost: ₹1,500 to ₹2,000 per director.
Portal: Licensed Certifying Authority (eMudhra, Capricorn, Sify) | Time: 1 to 2 days | Cost: ₹7,500 to ₹10,000 for 5 directors
Step 2: Reserve the Name via SPICe+ Part A
Check name availability on the MCA V3 portal and propose up to 2 unique names. The name must include the mandatory suffix "Producer Company Limited" per Sec 378A. The Central Registration Centre (CRC) reviews and approves names within 1 to 3 working days. The name reservation fee is waived when SPICe+ Part A is combined with Part B. Reserved names are valid for 20 days.
Portal: mca.gov.in | Time: 1 to 3 days | Cost: Nil (combined with Part B)
Step 3: Draft MoA (INC-33) and AoA (INC-34)
Draft the Memorandum of Association with all 11 permitted objects under Sec 378B and the Articles of Association customised for producer governance. The AoA must include the 1 member = 1 vote rule, dividend cap per Sec 378ZJ, patronage bonus mechanism under Sec 378D, and the mandatory CEO appointment clause per Sec 378W. This is where most DIY attempts fail, because standard Pvt Ltd templates do not include producer-specific governance clauses.
Time: 2 to 3 days | Handled by IncorpX CA/CS team
Step 4: File SPICe+ Part B with Producer Declarations
Compile and file SPICe+ Part B with all directors' and members' details, INC-9 subscriber declarations, DIR-2 consents, producer-status declarations and the producer member list. All signatures are digital via DSC. Up to 3 first-time directors receive DIN allotment through this form at no extra cost.
Portal: mca.gov.in | Time: 1 day | All signatures via DSC
Step 5: File AGILE-PRO-S
File AGILE-PRO-S as a linked form with SPICe+ for PAN, TAN, GSTIN, EPFO, ESIC, zero-balance bank account with a partner bank, and Shop and Establishment registration. EPFO and ESIC registration is mandatory for every new company. No separate government fee applies for these registrations.
Filed simultaneously with SPICe+ Part B | Cost: Nil
Step 6: Receive Certificate of Incorporation
The Central Registration Centre (CRC) reviews SPICe+ and issues the Certificate of Incorporation with CIN, PAN and TAN. The certificate is emailed to all subscribers and the certifying professional. Typical MCA processing takes 5 to 10 working days after submission. Track your application using the SRN (Service Request Number) on the MCA portal.
Time: 5 to 10 working days | Certificate delivered via email
Step 7: Complete Post-Incorporation Actions
Activate the bank account, deposit subscription money, file INC-20A (commencement of business) within 180 days, appoint the first auditor via ADT-1 within 30 days, hold the first Board meeting within 30 days, and apply for NABARD, SFAC and Udyam / MSME registration.
Critical deadlines: INC-20A within 180 days | ADT-1 within 30 days | First Board meeting within 30 days
Common Mistake: Filing INC-20A late (after 180 days) attracts ₹50,000 penalty on the company and ₹1,000 per day on each director (up to ₹1 lakh). Set a calendar reminder on day 1 of incorporation. IncorpX sends automated reminders at 30, 90 and 150 days.
CA/CS assisted. Zero MCA resubmissions. 12 to 18 working days turnaround.
Cost, Government Fees and State Stamp Duty 2026
The total cost to register a Producer Company in India typically ranges from ₹25,000 to ₹35,000 for a 5-director, ₹5 lakh paid-up setup. This includes government fees, state stamp duty, DSC for 5 directors and professional fees. IncorpX starts at ₹14,999 all-inclusive. Every cost component is listed below.
Component
Amount (₹)
Notes
MCA Incorporation Fee (auth capital ₹5 lakh)
Nil
Producer Company waiver continues
Name Reservation (SPICe+ Part A)
Nil
Bundled with Part B
DSC (Class 3, 2 yr) x 5 Directors
7,500 to 10,000
₹1,500 to ₹2,000 per director
DIN (via SPICe+)
Nil
Bundled (up to 3 first-time directors)
PAN + TAN (via AGILE-PRO-S)
Nil
Bundled
Stamp Duty on MoA
200 to 1,000
State-specific
Stamp Duty on AoA
500 to 10,000
Often % of authorised capital
MoA, AoA and Producer-Declaration Drafting
Included
Included in IncorpX fee
IncorpX All-Inclusive Professional Fee
From ₹14,999
CA/CS certification included
State-Wise Stamp Duty for Producer Company Registration
Stamp duty on MoA and AoA is levied per the state Stamp Act and paid electronically via SPICe+. Rates vary significantly by state and authorised capital.
State / UT
MoA Stamp Duty
AoA Stamp Duty
Notes
Maharashtra
₹200
0.2% of auth capital
Highest FPO density in India
Delhi
₹200
₹150
Lowest stamp duty
Karnataka
₹1,000
₹500 per slab
Slab on auth capital
Tamil Nadu
₹200
₹500
Fixed rate
Gujarat
₹200
₹1,000
Strong dairy FPO presence
Telangana
₹500
0.15% of auth capital
Andhra Pradesh
₹500
0.5% (min ₹1,000)
Rajasthan
₹500
0.5% of auth capital (min ₹500)
West Bengal
₹60
₹300
Lowest total
Kerala
₹1,000
0.5% of auth capital
Uttar Pradesh
₹500
₹500
Largest state by potential members
Madhya Pradesh
₹200
0.15% of auth capital
Stamp duty figures are directional and subject to change by state notifications. We verify the exact amount for your state at the time of filing.
Free state-specific cost estimate. ₹14,999 flat professional fee. Government fees at actuals.
Pricing Guarantee: IncorpX provides a detailed state-specific quote before payment. All government fees are billed at actuals with full transparency. No mid-process surprises, no hidden add-ons. The ₹14,999 professional fee covers MoA/AoA drafting, producer declarations, CA/CS certification and post-filing support.
A 15-member horticulture collective from Karnataka completed Producer Company registration in 13 working days. Total cost: ₹29,500 (DSC for 5 directors at ₹8,000, Karnataka MoA stamp duty ₹1,000, AoA stamp duty ₹500, IncorpX professional fee ₹14,999, miscellaneous charges ₹5,001). MCA incorporation fee: nil under the Producer Company waiver.
Taxation: Corporate Rates and Sec 80PA Deduction
A Producer Company is taxed as a company, not as a cooperative society. Corporate income tax is 22% under Sec 115BAA (effective about 25.17%), 25% for turnover up to ₹400 crore, or 30% otherwise. Sec 80PA allows a 100% deduction on profits from eligible business for 5 consecutive assessment years, subject to a ₹100 crore turnover cap.
Corporate Income-Tax Rate Options
Option
Rate
Effective Rate
Best For
Sec 115BAA
22%
About 25.17%
Most Producer Companies
Sec 115BA (up to ₹400 Cr turnover)
25%
About 26%
Large FPOs retaining deductions
Default (above ₹400 Cr)
30%
About 33.38%
Rarely applicable to FPOs
Sec 115BAB (new manufacturing)
15%
About 17.16%
FPOs with processing units (pre March 2024)
Sec 80PA: 100% Deduction for 5 Years
Sec 80PA allows a 100% deduction on profits from eligible business activities: marketing of members' produce, input procurement for members, and processing of primary produce. The deduction is available for 5 consecutive assessment years to Producer Companies with aggregate turnover up to ₹100 crore. Finance Act 2023 extended this deduction through AY 2025-26. Finance Act 2025 did not further extend it; verify AY 2026-27 availability with your Chartered Accountant before filing ITR-6.
A Producer Company with ₹8 crore turnover earns ₹60 lakh eligible business profit. Claiming 100% Sec 80PA deduction: ₹60 lakh x 25.17% effective rate = about ₹15.1 lakh tax saving per year. Over 5 assessment years, total potential saving: up to ₹75.5 lakh (assuming consistent profits).
Why Sec 80P Does Not Apply to Producer Companies
Sec 80P of the Income-tax Act 1961 applies only to cooperative societies registered under state or central cooperative law. A Producer Company is registered under the Companies Act 2013, not under any cooperative statute. Applying Sec 80P to a Producer Company is a common error. The correct provision is Sec 80PA, introduced by Finance Act 2018 specifically for Producer Companies.
CA Compliance Note: If your Producer Company opts for the 22% Sec 115BAA rate, file Form 10-IC before the ITR-6 due date. Missing Form 10-IC locks the company into the default 30% rate for that assessment year. IncorpX's tax team includes Form 10-IC filing in the post-incorporation compliance checklist.
GST Treatment of Agricultural Produce
Unprocessed agricultural produce sold by the producer in its natural form is generally exempt under Notification 2/2017-CT-R. Processed, packaged or branded produce is taxable at applicable GST rates (5%, 12% or 18% depending on the product). GST registration for agricultural produce is mandatory when aggregate turnover crosses ₹40 lakh (goods) or ₹20 lakh (services) in most states.
Funding Ecosystem: NABARD, SFAC, NCDC
A registered Producer Company gains access to central government funding schemes that are not available to Private Limited Companies, LLPs or unregistered farmer groups. Three agencies drive the FPO funding ecosystem in India.
NABARD 10,000 FPO Formation and Promotion Scheme
This Central Sector Scheme (launched 2020-21) targets formation and 3-year handholding of 10,000 FPOs across India. NABARD, SFAC and NCDC serve as implementing agencies. Support includes formation grants disbursed through empanelled Cluster-Based Business Organisations (CBBOs), capacity-building programmes, and linkage to credit and equity schemes. The scheme covers all 28 states and 8 Union Territories.
SFAC Equity Grant Scheme
The Small Farmers' Agribusiness Consortium (SFAC) provides a matching equity grant of up to ₹15 lakh to a registered FPO. The grant is conditional on member equity having been raised first. This strengthens the shareholder equity base, improves the debt-equity ratio and helps the Producer Company qualify for bank credit at competitive rates.
SFAC Credit Guarantee Fund (CGS)
The Credit Guarantee Scheme provides collateral-free loans of up to ₹2 crore to FPOs. Banks lend to the Producer Company against the CGS guarantee, removing the need for land or asset collateral. This is critical for working-capital needs like input procurement, aggregation and post-harvest handling. If your Producer Company receives foreign contributions, consider FCRA registration.
NCDC Assistance
The National Cooperative Development Corporation offers term loans, working-capital loans and project finance for processing infrastructure, cold-chain assets, warehousing and storage facilities. Application is through NCDC regional offices, backed by a project report and state government recommendation.
Scheme
Support Type
Max Amount
Application Channel
NABARD 10,000 FPO Scheme
Formation + 3-year handholding
Per-FPO grant
CBBO empanelled by NABARD
SFAC Equity Grant
Matching equity
₹15 lakh
SFAC portal (sfacindia.com)
SFAC Credit Guarantee (CGS)
Collateral-free loan guarantee
₹2 crore
Through lending bank
NCDC Assistance
Term loan / project finance
Project-based
NCDC regional office
IncorpX aligns your Producer Company for SFAC Equity Grant (up to ₹15 lakh) and CGS loan guarantee (up to ₹2 crore) from day one.
Annual Compliance Calendar
After incorporation, a Producer Company must meet statutory deadlines to stay active and penalty-free. Missing INC-20A alone can trigger automatic strike-off by the Registrar under Sec 248. Work with IncorpX for ongoing compliance management.
Critical Warning: Non-filing of INC-20A within 180 days triggers ₹50,000 penalty on the company, ₹1,000 per day per director (up to ₹1 lakh), and strike-off proceedings by the Registrar under Sec 248. This is the most common first-year compliance failure for new Producer Companies.
Conversion Path: A Producer Company cannot be converted into a Pvt Ltd, Public Ltd, LLP or Section 8 Company. The only permitted conversion is to a Multi-State Cooperative Society under Sec 378ZU of the Companies Act 2013, requiring an NCLT order. If you need to change your producer company name, file Form INC-24 with MCA.
Common Mistakes and Myths to Avoid
Outdated competitor content has created 6 persistent myths about Producer Companies. Here are the facts, backed by current law citations.
Myth
Fact
Minimum paid-up capital is ₹1 lakh
₹5 lakh under Sec 378C(1). The ₹1 lakh figure on competitor pages relates to the repealed 1956 Act.
Producer Company is registered under Companies Act 1956
Under Chapter XXI-A of Companies Act 2013, effective 11 February 2021.
Producer Companies get Sec 80P benefit
No. Sec 80P applies to cooperative societies only. Producer Companies get Sec 80PA.
Anyone can be a member
Only primary producers or producer institutions (Sec 378A). Corporate investors or non-producers cannot join.
A Producer Company can become a Public Ltd
Conversion only to Multi-State Cooperative Society (Sec 378ZU via NCLT).
3 directors are enough
Minimum 5 directors required (Sec 378M). At least 1 must be resident in India.
Why IncorpX for Your Producer Company
Current Law Compliance
IncorpX cites Sec 378A to 378ZU of the Companies Act 2013. No outdated 1956 Act references. Every filing uses the correct legal framework and ₹5 lakh capital threshold.
Sec 80PA Tax Review
Dedicated Sec 80PA tax-optimisation review included at filing. Potential saving: up to ₹15 lakh per year for eligible Producer Companies with turnover up to ₹100 crore.
NABARD and SFAC Alignment
NABARD FPO Scheme and SFAC Equity Grant eligibility guidance built into our onboarding. We help your Producer Company qualify for up to ₹15 lakh equity grant and ₹2 crore CGS loans.
CA and CS Assisted
Every filing is drafted by a qualified Chartered Accountant or Company Secretary and peer-reviewed. MoA with 11 Sec 378B objects and producer-governance AoA clauses drafted accurately.
Transparent Pricing
Fixed-fee all-inclusive at ₹14,999. Full government fee breakdown published above. State-specific stamp duty verified before payment. No mid-process surprises.
95+ City Coverage
Dynamic city pages for 95+ locations already indexed by Google. State-specific stamp duty verification included. DPIIT Startup India recognition assistance available post-registration.
DPIIT recognition for tax holidays, angel tax exemption and self-certification under 9 labour laws.
Frequently Asked Questions About Producer Company Registration
Below are 36 questions sourced from real search queries, MCA guidelines and our experience registering Producer Companies and FPOs. Each answer includes specific data points, relevant Act sections and ₹ amounts.
A Producer Company is a corporate entity registered under Chapter XXI-A, Sections 378A to 378ZU of the Companies Act 2013. It is formed by at least 10 individual primary producers or 2 producer institutions, with minimum paid-up capital of ₹5 lakh, to undertake production, procurement, marketing or processing of agricultural produce for its members.
Yes, in practice. FPO (Farmer Producer Organisation) is the umbrella term used by the Ministry of Agriculture, NABARD and SFAC. A Producer Company registered under Sec 378A of the Companies Act 2013 is the most common legal form of an FPO. About 85% of FPOs under the NABARD 10,000 FPO Scheme are registered as Producer Companies.
Under Chapter XXI-A, Sections 378A to 378ZU of the Companies Act 2013. These sections were inserted by the Companies (Amendment) Act 2020, notified effective 11 February 2021. The earlier Part IX-A of the Companies Act 1956 stands repealed. Any advice citing the 1956 Act is outdated.
Sec 378A defines a producer as a person engaged in any primary-producer activity: farming, horticulture, animal husbandry, pisciculture, bee-keeping, forestry, handicrafts, handlooms, khadi, village and cottage industries, by-products and ancillary activities. Only persons meeting this definition or producer institutions can be members.
A Producer Institution is a body corporate or cooperative whose objects match one or more of the 11 activities in Sec 378B. A minimum of 2 Producer Institutions can together form a Producer Company without individual producer members under Sec 378C(1). Each institution must pass a board resolution authorising membership.
Sec 378B permits: (1) production, procurement and marketing of primary produce, (2) processing, (3) manufacture or supply of machinery to members, (4) education on mutuality, (5) technical services and R&D, (6) power generation and land conservation, (7) insurance, (8) promoting mutuality, (9) welfare, (10) financing members' activities, (11) ancillary activities.
The minimum paid-up capital is ₹5 lakh under Sec 378C(1) of the Companies Act 2013. The minimum authorised capital is also ₹5 lakh. Competitor pages stating ₹1 lakh are incorrect; that figure relates to the repealed 1956 Act framework.
Minimum 10 individual producers, or 2 producer institutions, or a combination per Sec 378C(1). No maximum cap on members. Directors: minimum 5, maximum 15 under Sec 378M. At least 1 director must be resident in India for 182 or more days in the preceding financial year per Sec 149(3).
Yes. Sec 378W makes a full-time Chief Executive Officer mandatory for every Producer Company. The CEO is an ex-officio director but must not be a shareholder. The CEO handles day-to-day management and reports to the Board of Directors. Failure to appoint a CEO attracts penalties under Sec 450.
Every Producer Company name must end with the suffix "Producer Company Limited" as mandated by Sec 378A of the Companies Act 2013. This suffix makes the corporate form identifiable on MCA records, tenders and bank documents. Name reservation is done via SPICe+ Part A.
A Producer Company is registered with the MCA under the Companies Act 2013, operates pan-India with limited liability and corporate compliance. A Cooperative Society is registered under a state cooperative act and regulated by the state Registrar. Tax regimes differ: Producer Companies get Sec 80PA; cooperatives get Sec 80P.
Only primary producers as defined in Sec 378A can be members. A non-resident Indian engaged in qualifying primary-producer activity may be admitted, but foreign nationals without primary-producer status cannot. The Board must include at least 1 resident Indian director per Sec 149(3).
Sec 378ZI requires every Producer Company to transfer a portion of annual net profit to a general reserve each year until the reserve equals the paid-up share capital. This transfer must be done before declaring any limited return on share capital or patronage bonus under Sec 378ZJ and Sec 378D.
Typical timeline is 12 to 18 working days: 1 to 2 days for DSC, 1 to 3 days for name reservation via SPICe+ Part A, 2 to 3 days for MoA and AoA drafting, 1 day for SPICe+ Part B and AGILE-PRO-S filing, and 5 to 10 days for MCA processing and Certificate of Incorporation.
The SPICe+ form on the MCA V3 portal. Part A reserves the name. Part B handles incorporation, DIN allotment, PAN and TAN. Linked forms include INC-33 (e-MoA), INC-34 (e-AoA), INC-9 (declarations), DIR-2 (consent) and AGILE-PRO-S for GSTIN, EPFO, ESIC and bank account.
Technically yes, because SPICe+ is a self-service MCA form. In practice, drafting MoA with 11 Sec 378B objects, AoA with producer-governance clauses (1 member = 1 vote, dividend cap, patronage bonus) and producer-status declarations needs professional care. A single drafting error can trigger MCA resubmissions adding 3 to 7 days.
From each director and member: PAN, Aadhaar, passport-size photo, address proof, utility bill and bank statement not older than 2 months. Registered office: utility bill plus ownership proof or rent agreement with NOC. Producer-specific: member primary-producer declaration with land record, producer-member list, DIR-2, INC-9 and CEO particulars per Sec 378W.
GSTIN is applied via AGILE-PRO-S linked to SPICe+. Registration is mandatory when turnover crosses ₹40 lakh (goods) or ₹20 lakh (services) in most states. Unprocessed agricultural produce sold by a farmer-producer is GST exempt under Notification 2/2017-CT-R. Processed or branded produce is taxable at applicable rates.
INC-20A is the declaration of commencement of business. Every Producer Company must file INC-20A within 180 days of incorporation, confirming that every subscriber has paid the subscription amount. Non-filing attracts ₹50,000 penalty on the company and ₹1,000 per day on each director up to ₹1 lakh.
The first Board meeting must be held within 30 days of incorporation. The first AGM must be held within 90 days of incorporation under Sec 378ZA. Thereafter, Board meetings must be held at least 4 times a year with a maximum 3-month gap between consecutive meetings.
Yes. A statutory audit is mandatory for every Producer Company regardless of turnover. The first auditor must be appointed by the Board within 30 days of incorporation and filed via ADT-1. Tax audit under Sec 44AB applies if turnover exceeds ₹1 crore, or ₹10 crore if cash receipts and payments are below 5%.
AOC-4 (financial statements) within 30 days of AGM, MGT-7 (annual return) within 60 days of AGM, DIR-3 KYC for every director by 30 September each year, MBP-1 (director disclosures) at the first Board meeting of each FY, and DIR-8 (disqualification declaration). Late filing of AOC-4 or MGT-7 attracts ₹100 per day per form.
Typical total cost is ₹25,000 to ₹35,000 for a 5-director, ₹5 lakh paid-up setup. This includes DSC for 5 directors (₹7,500 to ₹10,000), state stamp duty on MoA and AoA (₹700 to ₹10,000), and professional fees. MCA incorporation fee is nil under the Producer Company waiver. IncorpX all-inclusive fee starts at ₹14,999.
Nil. The MCA incorporation fee for Producer Companies with authorised capital of ₹5 lakh or more is waived under the standing fee exemption introduced in 2019. Name reservation via SPICe+ Part A is also free when combined with Part B. State stamp duty on MoA and AoA remains separately payable.
Stamp duty is state-specific. Representative figures: Maharashtra ₹200 MoA plus 0.2% of authorised capital on AoA, Delhi ₹200 plus ₹150, Karnataka ₹1,000 plus ₹500, Tamil Nadu ₹200 plus ₹500, Gujarat ₹200 plus ₹1,000. Figures are directional and subject to latest state finance notifications.
No. Sec 80P of the Income-tax Act applies only to cooperative societies registered under cooperative law. A Producer Company is registered under the Companies Act 2013 and does not qualify for Sec 80P. Producer Companies instead get Sec 80PA, a parallel deduction introduced by Finance Act 2018.
Sec 80PA allows a 100% deduction on profits from eligible business (marketing of members' produce, input procurement, processing) for 5 consecutive assessment years. Turnover must be up to ₹100 crore. Finance Act 2023 extended through AY 2025-26. Verify AY 2026-27 status with your CA.
Three common options: 22% under Sec 115BAA (effective about 25.17% with surcharge and cess), 25% for turnover up to ₹400 crore under Sec 115BA, or the default 30% (effective about 33.38%). Most Producer Companies opt for Sec 115BAA. Sec 80PA deduction, where available, can bring eligible-business tax to nil.
Unprocessed agricultural produce sold by the producer in its natural form is generally exempt under Schedule II or Notification 2/2017-CT-R. Processed, packaged or branded produce is taxable at applicable GST rates. GST registration is mandatory when aggregate turnover crosses ₹40 lakh (goods) or ₹20 lakh (services).
Yes. Under the 10,000 FPO Formation and Promotion Scheme (launched 2020-21), NABARD supports formation and 3-year handholding of new Producer Companies through empanelled CBBOs. Support includes formation grants, capacity building and linkage to SFAC equity grant (up to ₹15 lakh) and CGS credit guarantee (up to ₹2 crore).
The Small Farmers' Agribusiness Consortium (SFAC) Equity Grant Scheme provides a matching equity grant of up to ₹15 lakh to a registered FPO, conditional on member equity having been raised first. The grant strengthens the shareholder equity base and helps the Producer Company meet debt-equity norms for bank credit.
The National Cooperative Development Corporation offers term loans, working-capital loans and project finance to eligible Producer Companies and cooperatives. Typical use cases include processing infrastructure, cold-chain assets and storage facilities. Application is through NCDC regional offices, usually backed by a project report and state government recommendation.
A Producer Company has a ₹5 lakh capital floor, 1 member = 1 vote governance, 20% dividend cap, patronage bonus, NABARD and SFAC funding access, and Sec 80PA tax benefit. A Pvt Ltd has no capital floor, voting by shareholding, no patronage bonus and no FPO-specific schemes. Choose Producer Company if members are primary producers.
A Producer Company is regulated by MCA under the Companies Act 2013, operates pan-India, gets Sec 80PA and has higher compliance (SPICe+, AOC-4, MGT-7). A Cooperative Society is regulated by the state Registrar of Cooperatives, gets Sec 80P, operates within state limits and has lighter but state-variable compliance.
No. A Producer Company cannot be converted into a Public Limited Company, Private Limited Company, LLP or Section 8 Company. The only permitted conversion is to a Multi-State Cooperative Society under Sec 378ZU of the Companies Act 2013, requiring an order from the National Company Law Tribunal (NCLT).
Only if the objective is purely charitable and profits will not be distributed. A Section 8 Company cannot distribute profits or pay dividends. A Producer Company distributes limited dividend (Sec 378ZJ) and patronage bonus (Sec 378D) to producer members and is the right choice when members expect a share of the surplus.
The team was very responsive and helpful. I received daily updates from the WhatsApp group, and their guidance made everything much simpler to comprehend. If you want a simple and hassle-free way to launch your business, I would highly recommend them!
S
Simon Job
4.9/5
I recently used IncorpX to register my limited liability partnership, and I had an amazing experience! There were no hidden fees, and the team was helpful, quick to respond, and open. They provided thorough explanations of each step, and their services are reasonably priced without sacrificing quality. The entire process was made simple by IncorpX's professionalism, attention to detail, and sincere support. Strongly advised!
J
Jay R
4.8/5
The experience was flawless; the team completed each task with care and always responded quickly. Throughout the process, I never felt stuck. We would especially like to thank Saksham and Sriram for making everything run so smoothly! The IncorpX team offers extremely competitive pricing; anyone just starting out should definitely get in touch with them.
M
Mohammed Affan
4.9/5
I'm really grateful to the wonderful team at IncorpX for helping bring my co-founder's and my dream to life. The whole process was super smooth - fast service, great support, and no hassles at all. I'd highly recommend IncorpX to any new entrepreneur or founder looking to register their company. Excited to continue working with them in the long run. Thank you, IncorpX!
R
Riyom Taipodia
4.6/5
One of the best agency I have ever experienced. Team members are very friendly as if we know each other from before and came communicate and share easily. My work has been done in a very short period and I am so happy. Thank you so much.
A
Ayyappa Swamy
5/5
Highly recommend... IncorpX services regarding incorporation of our company and roc filing and all are very impressive.. the team IncorpX is polite and friendly. Our Lands Time pvt ltd has incorporated through IncorpX... And thanks to IncorpX team..
R
Ramesh Babu
4.9/5
Trouble free service, Rendering good co-operation for company incorporation. Trust worthy team to have better knowledge.
P
Pravesh Kudesia
5/5
IncorpX is providing best service... And user experience! Thank You IncorpX Team
B
Balaji Gutte
4.9/5
I recently got my Private Limited Company incorporated through IncorpX, and the experience was seamless! The team was professional, supportive, and quick to respond throughout the process. Highly recommend IncorpX for a smooth and stress-free company registration experience.
D
Dia
5/5
I'd been planning to register my Private Limited Company for months but didn't know where to start - until I found IncorpX. The team guided me step by step, explained everything clearly, and completed the registration smoothly within the promised timeline. Their pricing was transparent with no hidden charges. Highly recommend IncorpX to anyone starting a business!
Trusted by 15,000+ Entrepreneurs
Get Expert Guidance for Your Business
Fill out the form and our team will connect with you to understand your requirements and recommend the best way forward.
