FPC Compliance Made Simple: Step-by-Step Guide for Farmer Producer Companies

Many Farmer Producer Companies (FPCs) in India stop working not because of poor business - but because they miss important compliance work. Compliance means following the legal rules set by the government for registered companies.

Good compliance helps your FPC stay active, get loans, and earn trust from buyers and partners. Let’s learn how to keep your FPC safe and strong in simple steps.

1. What is Compliance?

Compliance means the official reports, updates, and documents that every registered company must file each year.For FPCs, it includes:

• Annual audit report

• ITR filing (Income Tax Return)

• DIN KYC of all directors

• ROC filing (Registrar of Companies)

• Conducting AGM (Annual General Meeting)

Completing these on time keeps your FPC “Active” on the MCA (Ministry of Corporate Affairs) website.

2. Why Compliance is Important for FPCs

If your FPC misses filing or audit, it faces:

• Penalty fees for non-audit (₹100 per day for delay)

• Penalty fees for not doing DIN KYC (₹5000 per director)

• Director disqualification (can’t start or run another FPC)

• Loss of funding from NABARD, SFAC, or government schemes

• Bank loan rejection due to inactive status

So, compliance is not a burden - it’s protection for your FPC’s future.

3. Key Compliance Activities

Here’s what every FPC must do each year:

A. Audit Report

• Conducted by a Chartered Accountant (CA) after 31st March (financial year-end).

• Includes balance sheet, income-expenditure, and cash flow statement.

• Deadline: Before 30th September every year.

B. ITR Filing (Income Tax Return)

• Mandatory even if your FPC made no income.

• Deadline: 31st October.

• Helps in getting loans and subsidy approvals.

C. DIN KYC

• Every director must verify their Director Identification Number (DIN) online.

• Deadline: 30th September.

• Cost: ₹500 per director (approx).

D. ROC Return Filing

• Two main forms: AOC-4 (for accounts) and MGT-7A (for annual return).

• Filed on the MCA portal.

• Deadline: 30th November.

E. Annual General Meeting (AGM)

• Conducted once every year before 30th September.

• Discuss audit report, profit, and plans for the next year.

• Meeting minutes must be recorded properly.

4. How to Manage FPC Compliance Easily

Many rural FPCs cannot afford a full-time CA or accountant. Here are some easy ways to manage:

• Hire task-based experts: You can hire professionals only when needed (for audit, filing, or ROC work) - like through Dhanoni Agribusiness, which connects FPCs with verified experts at affordable rates.

• Set reminders:Use a wall calendar or phone reminder for all compliance dates (Sept - Nov).

• Train your BoD members: At least one member should understand compliance basics. It helps avoid future mistakes.

5. Common Mistakes FPCs Make

• Missing audit deadlines

• Not renewing director DINs

• Wrong ITR filing (done as cooperative or trust)

• Using personal bank account for FPC work

• Not conducting or recording AGM

Avoiding these mistakes saves your FPC from big penalties and MCA notices.

6. Benefits of Regular Compliance

When your FPC is compliant:

• It appears as “Active” on MCA portal

• Eligible for loans, subsidies, and projects

• Builds trust with farmers, buyers, and funders

• Avoids late fees and legal issues

• Helps in smooth audit and renewal next year

Compliance shows that your FPC is professional and transparent - key for long-term success.

Conclusion

Compliance may look complicated, but once you know the steps and dates, it becomes easy. Think of it like taking care of your crops - regular care brings better results.

With a small effort, your FPC can stay active, earn more trust, and open doors to government schemes and private partnerships. Start today - stay compliant, stay confident!