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Planning to set up a Food Business? Follow these Simple Steps

Swarit Advisors

| Updated: Jan 03, 2019 | Category: FSSAI

A food business involves so many different styles and types of cuisines providing a treat to the food lovers. A restaurant business or a restaurant also comes under the ambit of a food business. It can be very overwhelming for any business owner to start a food business in India.

In the below article, we will discuss the things you should consider before you start a food business in India or to establish one of the best restaurants or food joint in your city or all over the country.

What can the Food Business Include?

Your food business can be of varying types and it’s not just the restaurant that can be considered as the food business. There are many categories of such business. Let us have a look at some of the categories.

  • Small Eating Joint
  • Bakery
  • Cafe
  • Warehouse
  • Food Truck
  • Sweet Shop
  • Grocery Store
  • Food products such as a homemade pickle, biscuits, chocolates or jam business

It is to be noted that this is not an all-inclusive list which means that more business types can form part of the above list.

Do you need to follow Rules and Regulations before Starting any Food Business?

Of course, if you are planning to start a food business, you need to follow a lot of rules and compliances requirements to ensure smooth day to day operations. Such rules and compliances must be followed as per the guidelines of different authorities. It ensures a sense of safety and hygiene of the food and beverages delivered to the customers.

This helps to build the reputation of the institution and prompts loyal customers to refer your food business to their friends or relatives which thus results in increasing outreach and footfall of the food business.

Any kind of negligence on your part in a food business can be fatal for the consumer and ultimately you would also have to face the penal consequences. So, food businesses have to undergo a lot of compliance before they need to be established.

It is very important to know about all the legal formalities that are required to run a food business so that you do not face any trouble later.

So will give you an idea about the things you need to take care of before establishing such business:

What all Registrations and Licenses you require to run your Food Business?

As we all are aware that whatever Food and Food Products we consume. It has a direct impact on our health. Therefore, a food business needs a whole host of licenses and permits to make sure that the food that they are providing is completely safe and of the utmost quality. A person who runs a food business is known as a Food Business Operator or FBO. Every FBO need to obtain one or more following licenses or permits to run the business Depending on the type of business

The following are the Licenses and Registrations for a Food Business:

FSSAI/Food License

Before starting any kind of food business in India, every FBO needs to register them and obtain an FSSAI license.  FSSAI stands for Food Safety and Standards Authority of India which is responsible for maintaining the safety and standards quality of the food products and eatables.  As mentioned, it is advisable to obtain the FSSAI License before you start your business.

FSSAI Licenses are basically of 3 types:

  • Central FSSAI License: Applicable for importers, head offices having operations in multiple states.
  • State License/Registration: Applicable for retailers, distributors, repackers with turnovers more than 12 lakhs
  • Registration Form A: Applicable for petty food businesses or for small food businesses who are having a turnover less than 12 lakhs

For more information, contact Swarit Advisors for the expert advice on obtaining FSSAI License

Health Trade License

This license can be applied by you at your local municipality office. The rules of the municipality of every State might vary. You can make file an application online for faster process.

Shops and Establishments Registration

As an FBO, you also need to register with the Shops and Establishments Act for the particular state in which your business operates. You need to obtain the registration to start your business in any kind of commercial marketplace or premises.

GST Registration

Since VAT and Service Tax are no more applicable to the food business in India. They have been replaced by GST registration which is required in order to commence the food business operations for the purpose of taxation calculation. In case you have a low turnover, you can also avail the composition scheme in order to be free from return compliances and rules under GST.

Liquor/Bar License

If your restaurant also serves liquor/alcohol, you need an appropriate Bar and Liquor License. You need to apply to the State Govt. for the luxury items like alcohol to be served in your restaurant or any other food premises. You need to submit all the documents listed as are mentioned in the Government checklist.

Fire Department NOC

It is advisable to obtain a NOC from the Chief Fire Officer of the Fire Department as per the Fire Services Act in your State or the Building Bye-Laws. If your building is notified under the Fire Services Act, you also have to fill out a questionnaire related to fire safety rules and regulations. You need to have a checklist of the following documents which are as follows:

  • 2 sets of the building plan along with information about the building as specified in the building bye-laws
  • Duly filled in the questionnaire, if applicable.
  • A Model of the building.
  • Checklist with certification from the Chief Architect.

Conclusion

With this information in hand, it is easy to fulfill all legal formalities for starting a food business in India.

Swarit Advisors can help you to follow the guidelines and submit all documents as per the checklists and will make sure that your registration process is seamless and smooth. So what are you waiting for? Contact Swarit Advisors now.

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Swarit Advisors

Swaritadvisors.com is technology motivated platform establishing the specialized legal & Financial advisory services in India. We are dedicated to helping startups and MNC in solving legal, Taxation and compliance related to starting and running their business around the world.

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