India has been performing very well across a number of industries. As a result of factors including cheap and flexible credit availability, simple government compliance requirements, and stronger infrastructure, India’s ranking on the ease of doing business has significantly increased.
By 2020, India will have the largest food and beverage sector. The expanding middle class and peoples’ hectic schedules have led to daily increases in the food industry. People are coming up with original ideas for their restaurants or food stands in this era of business.
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However, starting a food business is not as simple as it seems. You must be aware of the funding options available to invest in your company as well as various compliance requirements. To start a restaurant in India, you must meet a number of licence and registration requirements. There are many regulatory bodies that keep an eye on this sector of the economy, such as the Food Safety and Standard Authority of India (FSSAI), which is utilized for fssai registration or food licences.
“Food and beverage production is among India’s most promising and expanding industries. Therefore, obtaining an FSSAI registration or licence is a crucial first step in starting any food business.”
Here is a list of the requirements to open a restaurant in India:
- Food licenses in India: There are three types of FSSAI registration licences, and the type you need will depend on the type of business you have and how much money you make. FSSAI (Food Safety and Standard Authority of India) regulates food licences. In addition to granting licences, its job includes ensuring that FSSAI adheres to a number of standards, including those regarding food outlets’ display requirements and other customer disclosures for safety and hygienic reasons.
- Shop & Establishment Act: The applicable state’s shop establishment Act requires a restaurant to be registered. Employee rights and working conditions are protected by this law. To apply for food licence, you must complete out a specific form and submit documentation of your identification, your business’ address, and all of your staff members.
- Weights & Measures Department: In accordance with the Legal Metrology Act of 2009, you must obtain permission from the Weights & Measures Department before using any weighing or measuring equipment in the restaurant.
- Trade License: For each type of business you are running, you need a trade licence. It is necessary to notify the local government, such as your municipal corporation or the local health department, in order to obtain licence to operate a food establishment like a restaurant or market stall. There are procedures, such as completing an application they offer and requesting permission to launch the firm.
- Outdoor dining or eating out license: Obtaining permission via a fssai registration licence for outdoor dining or eating out. Whenever you visit a restaurant, you are typically given the option of dining indoors or outside on a balcony, terrace, or rooftop. If you intend to operate a restaurant, you will also need a second licence, which can be obtained through the city or state police. Online completion of this process is possible in almost all cities.
- Fire safety Certificate: All restaurants must be secure against fire; as a result, they require a NOC from the city’s fire department. If a future disaster occurs and your brand name is linked to the fact that you lacked a fire certificate, it could result in significant harm in the form of government fines and, more crucially, loss of reputation.
- Liquor/Bar License: You must Apply for food licence ifyour place of business sells alcohol. There is a severe fine for not having a liquor licence.
- Lift facility license: Restaurants with a lift facility in the building must make sure that the lift operations abide by safety regulations. Restaurants are required to maintain relevant authority’s certification.
- Playing Music and videos License: This licence was purchased from Phonographic Performance Limited(PPL) to play music and videos.
- Environmental Clearance: To confirm that the restaurant’s operations adhere to the environmental requirements, a certificate from your state’s pollution board is necessary.
- Signage licence: Restaurants need obtain a signage licence from the local government, such as the Municipal Committee or City Corporation, in order to show signs in public.
- GST Registration: If you want to start a food business of any kind, such as a stall, truck, or restaurant, you must register for GST.
You should apply for an FSSAI registration licence within the next 20 days if you enjoy cooking and are thinking about operating a restaurant.
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In addition to these requirements, it is advisable to join additional business associations and adhere to their rules. Above all, obtaining an FSSAI registration should be the initial step in starting any food business. We trust that this blog has given you the fundamental legal information you need to launch a food business in India. However, before pursuing any legal action, we still suggest you to get advice from corporate legal specialists like us. We will also assist you in applying for food licence. You may leave your insightful comments now.