Aah, Food! The driving fuel of humans throughout the world. The Food business can never go out of business well, for obvious reasons. India is a country with rich cultures and heritage and that cultural heritage spills over to food with so many different styles an types of cuisines providing a treat for the taste buds whichever corner of the country you wander into. With the hyper-competitive market environment, all over the country with FDI backed restaurants with multiple outlets, it can be overwhelming for any business owner starting a food business in India. However, with this article, we will provide you with a checklist of items to get you started on the right track to establish one of the best restaurants in your city or all over the country.
Food Businesses can be of varying types and it’s not just a restaurant type-setup which constitutes a food business. There are many categories under which aspiring business owners can start up with food items. Let’s look at a few of these categories
- Small eating Joint FSSAI Registration for Petty Food Businesses
- Bakery How to Start a Bakery in India
- Cafe Starting a Cafe/ Cafe License
- Food Truck: Food Truck License
- Sweets Shop
- Grocery Shop Opening a Grocery Store
- Home-Made Products such as pickles, biscuits, chocolates
Check Out: High-Profit Food Business Ideas
Starting any business, whether it is a food business as a Food Business Owner (FBO) or not requires these institutions to follow set guidelines and compliance requirements to ensure smooth day-to-day operations. Following these rules and compliance is not just for the statutory authorities, it ensures a sense of safety and security about the food and beverages being delivered to the customers. This helps the reputation of the institution and prompts loyal customers to refer your food business to their friends increasing outreach and footfall of the food business.
Starting a Food Business in India: The Full Checklist
The responsibility of providing safe food and deploying hygienic preparation practices forms an essential part of any food business. In order to achieve this, the Food Safety and Standards Authority of India (FSSAI) has laid down guidelines and compliances for safe practices. In addition to this, there are other taxation and safety-related licenses. Let’s look at the compliance requirements.
Before starting a food business in India, every FBO has to register their business by obtaining a FSSAI license.The FSSAI, as its name suggests is in charge of maintaining the safety and up to standards quality of the eatables produced by organizations in accordance with the FSS(Food Safety and Standards) Act, 2006. Like we mentioned before, before commencing any business activity related to food and beverages it is advisable to obtain the FSSAI license.
The FSSAI license is basically of 3 types.
- Central FSSAI License -The central FSSAI license is applicable for importers, Head offices with operations in multiple states as well some other businesses
- State License- State license is applicable for retailers, distributors, retailers, repackers among others with turnovers more than 12 lakhs
- Registration- Registration form A is for petty food businesses or for small Food businesses with turnover less than Rs. 12 lakh
Check Out: Different Types of FSSAI License
Health Trade License
Application for this license has to be submitted at the local municipality office. The rules of the municipality might vary according to which state they are in. These applications can be filed online making the process streamlined and faster.
Shop and Establishment Registration
In accordance with the Shop and Establishment Act for the particular state, all FBOs have to obtain this registration to start their business as a commercial marketplace.
The VAT and Service Tax regime ended with the introduction of GST on 1 July 2017. Every new business has to acquire GST registration in order to commence business activities for taxation purposes. Businesses with low turnovers can also avail the composition scheme in order to be free from intricate return compliances and rules under the GST regime, however, there are several downfalls to the scheme as well.
Read: Advantages and Disadvantages of Composition Scheme
Liquor/ Bar License
In case your food business also serves alcohol, appropriate Bar and Liquor license. The government provides a checklist of documents for all luxury items like alcohol to be submitted in order to obtain the appropriate license.
Fire Department NOC
The Fire Services Act of the state or corresponding building bye-laws dictates that it is advisable to acquire a NOC(No Objection Certificate) from the Chief Fire Officer. The FBO also have to fill out a questionnaire related to fire safety rules and regulations.
The government has also provided a checklist of documents for fire safety certificate. These documents are as follows
- Information about the building as specified in building bye-laws along with 2 sets of building plans.
- Duly filled questionnaire
- Model of the Building
- Checklist with certification from the Chief Architect
Hence, there is a comprehensive list of documents and compliances an FBO has to follow for starting a food business in India. At FssaiFoodLicense, we help you take the first steps into the Food and Beverages Industry by helping you acquire the FSSAI License / FSSAI registration of all types. Get started with your restaurant now! Call +91-8750008585.