How to Start a Food Business: Required Registration and Licenses

The food industry is now one of the most popular in India! Modern food outlets, as well as online food businesses that bring meals to our doorsteps, have become very popular among the young. Moreover, with a one-time legal and financial commitment, a food company in India is one of the most lucrative companies.

What exactly is a food business?

A food business is any firm in India that manufactures, imports, processes, packages, stores, sells, or distributes any kind of food. In India a food company provides the general public with the following food services:

• Restaurants

• Catering Services

• Bakery

• Sweet Shop

• Café

• Warehouse

• Handmade Food Business such as homemade chocolates, pickles, jams, and so on.

FoodTech refers to a food company that has an internet presence.

The online food company has its own website and/or mobile application and provides food services to its customers through the internet. Home delivery of groceries, online food delivery aggregators, e-sellers, and other online food businesses are examples of online food businesses.

To establish a food business in India, a company must follow certain rules and secure several permits to provide services and sell food items. Any lapse in judgment might put the food industry in jeopardy! It is essential to engage a startup lawyer in India to understand the legal requirements for starting a food company in India. (Please contact us at support@setupfilings.com or +919811782573).

Setupfilings has produced a comprehensive guide for all registrations and permissions necessary to establish a food company in India to address this legal quandary:

Structure of the company:

The first step in starting a food company in India is to finalize a legal structure under which the food business will be registered. In India, the most common company form is a Limited Liability Corporation (LLC), a Limited Liability Partnership (LLP), or a Sole Proprietorship. A corporation may also register as a sole proprietorship.

To establish a food business in India,

A company must first complete its GST registration and get a GSTIN number. Additional requirements for starting a food company in India include:

• Permanent Account Number (PAN) card.

• Professional Tax License for hiring paid employees. Any employee who earns Rs. 10,000 or more in a month must pay the tax.

• At least three neighbors must sign a No Objection Certificate (NOC).

Licenses needed to establish a food company in India include:

Any company engaged in any of the aforementioned activities is a Food Business Operator, and in order to establish a food business in India, the following licenses must be obtained:

FSSAI License: FSSAI is an abbreviation for the Food Safety and Standards Authority of India. To operate a food company in India, you must first seek a license from the FSSAI.

• A basic FSSAI registration is required for a food company with an annual revenue of up to Rs. 12 lakhs.

• A State FSSAI license is required for a food company with an annual revenue of up to Rs. 20 crores that operates in just one state.

• A Central FSSAI license is required for a food company with an annual revenue of more than Rs. 20 crores that operate in various states.

An application form is sent to the Licensing Authority, together with registration fees, which are now also payable online. The firm is given an FSSAI number upon registration. This number is printed on every food package that the company manufactures or processes.

Registration under the Shops and Establishments Act: A food company is required to register under the Shops and Establishments Act of the state in which it operates. A Shop and Establishment Certificate may be acquired by completing a form, paying the required fees, and attaching the necessary papers.

A health trade license permits a company to deal in any commodities or services that have a direct influence on public health. A food establishment having this Municipal Corporation license is verified to meet cleanliness and safety requirements. A Health Trade license is given by the Municipal Corporation or the health department of the state where the company operates.

Liquor License: If the company intends to offer alcohol on its premises, it must apply for a liquor license by completing the necessary documents. This license is granted by the local Excise Commissioner to any food establishment that wishes to offer alcoholic beverages.

Chief Fire Officer’s approval: To receive a NOC-No Objection Certificate, the company must submit its building plans, model of the building, and architect’s certificate, as well as fill out a questionnaire with the Chief Fire Officer.

Eating House License: An Eating House license is necessary for any business that admits the general public and serves any kind of food or drink for public consumption. The State Police Commissioner may issue an eating-house license.

Environmental Approval: This permit is available through the State or City Pollution Control Board. This license is given after the authority assesses the extent and environmental effect of the enterprise.

A signage license permits a food establishment to promote by displaying any text, signs, or photos. To get a signage license in India to publicly display signs outside its business premises, your food company must submit an application with the local Municipal authority.

License to play music or videos: A license to play music or videos is required to guarantee that the company does not violate the Copyright inherited in pre-recorded music or songs. The Phonographic Performance Limited granted this license. To play music or films in a restaurant or café, a food establishment must get this authorization.

The legal requirements necessary to establish a food company in India are quite intricate and sometimes confound candidates! It is recommended that you visit a startup lawyer in India who can handle all of the necessary registrations and permissions to establish a food company in India. SetupFilings connects you with the top attorneys in India. Please contact us at support@setupfilings.com or +917738877316.