VITTAX - Producer Company

What is a Producer Company?

A Producer Company is a special category of company under the Companies Act, 2013 designed specifically for primary producers — farmers, fishermen, artisans, weavers, and other persons engaged in any activity connected with primary production (agriculture, horticulture, animal husbandry, forestry, fisheries, etc.).

A Producer Company (also called Farmer Producer Organisation or FPO) allows individual producers to pool resources, access institutional credit (NABARD, SFAC), procure inputs collectively at lower costs, and market their produce collectively for better realisation. Minimum 10 individual producers or 2 producer institutions are required to form a Producer Company.

The Government of India actively promotes FPOs/Producer Companies through subsidies, equity grants (up to ₹18 lakh per FPO from NABARD), credit guarantees (CGTMSE extended), and tax exemptions under the Income Tax Act (100% deduction on profits for FPOs with turnover up to ₹100 crore).

Why Choose a Producer Company?

✦ Income Tax Exemption

✦ NABARD Grant Eligible

✦ Collective Bargaining Power

Who Should Register a Producer Company?

✔ Farmers’ Groups: Groups of 10+ farmers wanting to form an FPO for collective agriculture

✔ Other Producers: Fishermen, weavers, artisans, and other primary producers

✔ NGOs & State Departments: NGOs and state agriculture departments promoting farmer collectives

✔ Agri-tech Companies: Agri-tech companies structuring farmer-ownership models

Pricing Plans

FPO REGISTRATION — Complete Producer Company registration

₹14,999

Ideal for: Farmer groups, NGO-promoted FPOs

✓ SPICe+ filing
✓ MOA + AOA (Producer Company format)
✓ COI + PAN
✓ NABARD registration advisory
✓ Income Tax Exemption advisory

VITTAX Fee: ₹14,999 | Govt. Fees: MCA fees at actuals

FPO COMPLETE PACKAGE — Registration + Compliance + Grant Advisory

₹29,999

Ideal for: Large farmer collectives seeking institutional funding

✓ Everything in Registration
✓ SFAC / NABARD equity grant application
✓ FPO compliance calendar
✓ CGTMSE credit advisory

VITTAX Fee: ₹29,999 | Govt. Fees: MCA fees + Govt application fees at actuals

Frequently Asked Questions

Q: What is the income tax benefit for a Producer Company?

A: Under Section 80PA (inserted by Finance Act, 2018), a producer company engaged in agricultural activities with turnover up to ₹100 crore is eligible for 100% deduction of profits — effectively zero income tax. This is a major advantage over other corporate structures.

Q: How many members are required for a Producer Company?

A: Minimum 10 individual producer members (farmers, fishermen, etc.) or 2 producer institutions (other Producer Companies or cooperative societies). Maximum members — no statutory ceiling.

► Form Your Farmer Producer Organisation (FPO)

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Producer Company Registration