Producer Company (FPO) Registration in Patna & Bihar — Scheme Money, Rules and Timelines
Quick answer: A farmer producer company is incorporated under Chapter XXIA of the Companies Act (Sections 378A–378ZU) by at least ten producers or two producer institutions, through SPICe+ with ROC Patna. The central 10,000-FPO scheme (₹6,865 crore outlay running to 2027-28) funds CBBO handholding, ₹18 lakh of management cost over three years, a matching equity grant of ₹2,000 per member capped at ₹15 lakh per FPO, and a credit guarantee on project loans up to ₹2 crore through NABARD or NCDC. The 10,000th FPO, announced in Bhagalpur in February 2025, is registered in Khagaria district. We incorporate, structure the member capital for the grant, and work the implementing-agency file.
Last verified 4 October 2026 — rules on this page checked against the current notifications. We update it the day a rule changes.
What the scheme pays (PIB-verified)
| Support | Amount |
|---|---|
| Scheme outlay / tenure | ₹6,865 crore; launched 29 Feb 2020; runs to 2027-28 |
| Handholding | Cluster-Based Business Organisation (CBBO) for five years |
| Management cost | ₹18 lakh per FPO over three years |
| Matching equity grant | ₹2,000 per farmer member, max ₹15 lakh per FPO |
| Credit guarantee | Project loans up to ₹2 crore per FPO via NABARD / NCDC funds |
| Status | 10,000-FPO target met February 2025; ₹254.4 crore equity grants to 4,761 FPOs and ₹453 crore credit guarantee to 1,900 FPOs by then (PIB); about 30 lakh farmers, 40% women |
Incorporation under Chapter XXIA
- Promoters: 10 individual producers or 2 producer institutions (or a mix); objects limited to production, procurement, processing, marketing and allied activities of members
- SPICe+ on MCA V3 — ROC Patna for Bihar (ROC Kanpur for western UP, ROC Delhi for Delhi/Haryana); name ends with "Producer Company Limited"
- Profit shared by patronage, one member one vote; 2025-Act successor to the old s.80PA deduction confirmed before any tax claim
- Typical time: 15–25 working days to the certificate; grant and guarantee files follow the implementing agency's calendar
What we do
- Producer-eligibility documentation (land records / Kisan credentials), MoA for producer objects, SPICe+ filing with ROC Patna
- Equity-grant structuring (member share capital first), credit-guarantee paperwork with the lender, PMFME and BIADA stacking for processing units
- Annual compliance: AOC-4/MGT-7, internal audit under Chapter XXIA, FSSAI for processed produce
SPICe+ fees are quoted from MCA's fee rules at filing; the 31 December 2025 disbursal figures reported in industry sources are not repeated here until confirmed on a ministry page.
Talk to us before you file anything
Frequently asked questions
How many members are needed to form a producer company?
At least ten individual producers, or two producer institutions, or a combination (Chapter XXIA of the Companies Act).
What is the FPO equity grant?
A matching grant of ₹2,000 per farmer member, capped at ₹15 lakh per FPO, under the 10,000-FPO scheme.
Is an FPO loan collateral-free?
Project loans up to ₹2 crore per FPO are covered by the scheme's credit guarantee through NABARD or NCDC.
Is the 10,000-FPO scheme still open in 2026?
The 10,000 target was met in February 2025, but the scheme's outlay runs to 2027-28; support for a new FPO depends on the implementing agency's cluster allocation.
Which ROC registers producer companies in Bihar?
ROC Patna, through SPICe+ on the MCA portal.
Can non-farmers be members?
Only 'producers' as defined — farming, allied activities, handloom and cottage producers.
How is profit distributed?
By patronage (business done with the company), with limited return on share capital, not by shareholding.
Is a producer company tax-exempt?
Not automatically; the 2025-Act successor to the old s.80PA deduction and its conditions are confirmed before any claim.