Things to Remember Before Starting a Food Business in India

Starting a food business in India is not as simple as it seems to be. A lot of detailed things are required to do like an investment, planning set up, incorporation, obtaining license, paperwork and more. It can be very thrilling for any business owner starting a food business in India. But it is important for an entrepreneur to checklist all the necessary requirements before starting a food business.

The Food Safety and Standard Authority (FSSAI) of India has laid down certain rules and compliances for all the food business operators (FBO), that are needed to be followed for practising any type of food business.

In this article, we will talk about the requirements that an entrepreneur has to fulfil before entering into this venture.

Requirements to Start a Food Business in India

Incorporation

The first important step for a person who wants to enter into the food business is to look into the type of business he is going to register. He is needed to register the business either under a Private Limited Company, LLP, a sole proprietor or a One Person Company.

Depending upon the purpose and requirement, the business can be registered under any title. The cost of incorporation of LLP and One Person Company is less than the other types.

Another important aspect to look into is the financial input to the business. It can be done either through banks, which is opting for a loan or through investment from your own.

Licenses to Cover

To start a food business, it is important for any person to cover the licensing. The following licenses must be covers: –

FSSAI License

The Food Safety and Standard Authority of India mandate any person who is in the food business to obtain the FSSAI License. The FSSAI registration is a regulatory authority in India. The license is needed to be obtained to assure the safety of food products to the consumers. It assures that the standard quality of food is being offered to the people and no malpractice is being conducted.

Liquor License

If any person engaged in the food business is dealing with alcohol, it is necessary for him to obtain a Liquor License to operate in that sector. Liquor License is mandatory as it prevents any illegal selling of liquor to the consumers without obtaining the license.

Health/Trade License

The Health/Trade license is given by the municipal authority to those who are engaged in the food business. The purpose of it is to focus over public welfare.

Shop and Establishment Registration

All the food business operators in accordance with the Shop and Establishment Act are required to obtain Shop and Establishment registration to operate their business as a commercial marketplace.

Signage License

It is necessary for a food business operator to obtain signage license to keep any board or sign in the shop.

Trademark

All the trademarks such a logo, brand name etc used by the food business operator has to registered under the Indian Trademarks Act, 1999^[1] to prevent the misuse of the mark or infringement by any person and to maintain the goodwill in the market.

Goods and Service Tax (GST) Registration

All businesses are required to obtain GST registration to start business activities for taxation purposes.

Miscellaneous Regulations

Other regulations needed to be followed are: –

• Lift clearance
• Fire department NOC
• Environment clearance certificate
• Music license

Documents that are required to obtain the above licenses to start a food business in India

• Aadhar Card
• Pan Card
• Id proof of partners
• Details of employees
• Partnership Deed
• Passport size photo
• Water and power bill
• NOC from the landlord
• Layout and site plan
• Medical certificate
• Proof of property tax
• Affidavit
• List of food category
• Proof of lease deed
• Digital Signature
• Latest bank statement
• Trade license from the local authority
• Food analysis report

Conclusion

Starting a food business in India requires a lot of input and planning at the end of the entrepreneur. A set of guidelines are needed to be followed for a smooth operation. Not only it helps the owner of the food business to build a reputation in the market, but it also helps to assure that the food products that are being offered are safe and has a good standard of quality. The consumers can trust the products and services that are being offered by the FBO’s.

The responsibility to provide safe and hygienic food is an essential practice that has to be undertaken in any part of this sector. In order to start a business, all the necessary licenses are needed to be obtained without which a person cannot engage into the food business.

Also, Read: Is it possible to Copyright Artwork in India?