What are the Licenses Required to Start a Food Van in India?

‘Street Food’ means the tasty and lip-smacking yet cost-friendly items that are enjoyed and loved by most of us. In India, the term “Street Food” denotes the satisfaction that one gets from going one stall to another to enjoy every bite of the delicious food items. The idea itself makes our mouth watery. Also, it shall be relevant to mention that due to a significant increase in the consumption of street food, the count of Food Vans or Food Trucks has considerably increased as well. In this blog, we will discuss about the licenses required to start a Food Van in India.

Growth of Food Van Business in India

The culinary trend of having street food is already well-established in western countries, and the same is growing at a great speed in India. As a result, the future of food vans and food trucks seems bright in India. Also, it is expected that the same will cross the revenue growth at a rate of 3.8% and may rise up to the US $1.7 billion in the next five years.

Further, the concept of Meal on Wheel has prominently made its presence in several Indian cities, such as Mumbai, Bhopal, Ahmedabad, Bangalore, Hyderabad, Kolkata, Delhi, and NCR.

Furthermore, as per a report printed by the CISION PR Newswire, the Indian Fast Food Market is projected to grow at 18% CAGR (Compound Annual Growth Rate) and to cross the net worth of US $ 27.57 billion by the end of the year 2020.

Factors to Consider While Opening a Food Van in India

The factors to consider while opening a Food Van in India are as follows:

1. Go for a Right Location;
2. Purchase Robust Kitchen Equipment;
3. Arrange Quality Raw Materials;
4. Acquire Permits and Licenses required to start a Food Van in India;
5. Hire required Manpower;
6. Install POS (Point of Sale) Software;
7. Decide common Uniform for Employees;
8. Make Appearance on the different Social Media Marketing Platforms;
9. Analyze the Cost of Opening a Food Van;
10. Arrange other Miscellaneous Requirements;

Key Players of the Food Van Business in India

The key players of the food van business in India are s follows:

1. Super Sucker in Gurgaon;
2. Mumbai Rolling Kitchen in Mumbai;
3. SWAT in Bangalore;
4. TGIF Kolkata;
5. Chaska in Chennai;
6. Desi Firangi in Chandigarh;
7. Hungry Hands in Kolkata;
8. The Lalit Food Truck Company in Jaipur;
9. Oh Bouy, Noida;
10. Paranthawalas and Grills in Hyderabad;
11. Eat and Run in Mumbai;
12. Go Waffles in Bangalore;
13. Road Kills in Bangalore;
14. Sushi House Mafia in Gurgaon;
15. Auto Express in Hyderabad;
16. Square Ruth in Bangalore;
17. EGGjactly, Gurgaon;
18. Spitfire BBQ Truck in Bangalore;
19. Fried and Fabulous Food Truck in Bangalore;
20. Red Wok Chinese in Surat;
21. Ravi Gobi Chinese Centre Food Truck Business in Bangalore;

Different Types of Licenses Required to Start a Food Van in India

As there are neither any explicitly defined laws or provisions nor any set of documents pertaining to the Food Truck/Food Van business in India, it is noteworthy to acquire certain licenses and permits.

The different types of Licenses Required to Start a Food Van in India are as follows:

FSSAI License

As a Food Van Business comes under the realm of Food Business Operators (FBOs), it becomes mandatory for the owner to apply for FSSAI License prior to commencing its business affairs and operations. Therefore, it shall be relevant to state that one of the significant licenses required to start a Food Van in India is the FSSAI License.

Documents Required for FSSAI License

The documents required for FSSAI License in India are as follows:

1. Identity Proof in the form of Aadhar Card;
2. Address Proof in the form of Utility Bills ;
3. Valid Email Address;
4. Affidavit;
5. Phone Number;
6. Declaration regarding the Food Safety Management Plan;
7. List of Food Items and Category;
8. Kitchen Layout Plan;
9. No Objection Certificate^[1] (NOC) from the owner;
10. Water Testing Report from an ISI approved Facility;
11. Medical Certificates of the Employees;

Vehicle Registration

A commercial vehicle plays a crucial role in carrying out the business operations and affairs of a Food Van. Therefore, obtaining a Vehicle License from the RTO (Regional Transport Office) regarding the commercial vehicle being used is a must for a Food Van Owner prior to starting the business operations.

GST Registration

If a food van satisfies the criterion specified by the GST Act, it needs to obtain a compulsory GST Registration under the laws.

Documents Required for GST Registration

The basic documents required for GST Registration in India are as follows:

1. Registration Proof of the Food Business;
2. Address Proof;
3. Identity Proof of the Food Owner;
4. Address Proof of the Food Owner;
5. Details of the Business’s Current Bank Account;
6. PAN Card;
7. Rent Agreement or Lease Agreement;

Fire NOC

Another significant license required to start a Food Van in India is Fire NOC. Every Food Van Owner needs to obtain a Fire NOC or a Fire Security Certificate from the respective State Fire Department in which he/ she desires to start a Food Van Business.

However, it shall be pertinent to note that the authorities will grant this certificate only after verifying the proper installation of fire extinguishers and other required safety measures in the van.

Documents Required for Fire NOC

The basic documents required for Fire NOC in India are as follows:

1. A copy of the Layout Plan of the Food Van;
2. Food Van Model;
3. A copy of the Aadhar Card of the applicant;
4. A copy of the PAN Card of the applicant;
5. A postcard photograph of the full food van clicked from outside;
6. A certificate of Vehicle Stability;
7. A Certificate of Quality for Installed Electric Wiring;
8. A Certificate of Completion from a recognized authority;

Shop and Establishment License

The main objective behind the necessity of the Shop License or the Shop and Establishment License was to defend and safeguard the workers’ rights who are employed in the Food Van.

Documents Required for Shop License

The basic documents required for Shop License in India are as follows:

1. Pan Card of the Owner;
2. Identity Proof of the Owner;
3. Address proof of the Food Owner;
4. Details of the Employees Employed;
5. Postcard Photograph of the Food Van;
6. Address Proof;

Kitchen and Vehicle Insurance

Nowadays, there is a need for every Food Truck or Food Van to compulsorily apply for insurance policies, such as Kitchen Insurance, Vehicle Insurance, etc.

Approval Letter from the Local Municipal Authority

After selecting the appropriate location for the Business, the owner needs to obtain a duly stamped Written Document, termed as the “Approval Letter” from the Local Municipal Authority of the respective state, for starting a Food Van Business in India.

No Objection Certificate from RTO

Lastly, a food truck or food van owner requires to acquire a Commercial Vehicle Certificate from the respective RTO for selling the food items on wheels.

Conclusion

In a nutshell, starting a Food Van in India seems like an appealing and looked-for job. However, it shall be considerate to mention that the same is no cakewalk. Thus, one needs to carefully and prudently read the blog to embark upon the journey of starting a Food Van.

Further, for any other doubt or perplexity, reach out at Swarit Advisors, our experienced and proficient experts will guide you with the registration procedure for the licenses required to start a Food Van in India.

Also, Read: Things to Remember before starting a food business in India