With a growing health consciousness and the rising disposable income of the people in the country, there has been an ever-increasing demand for health supplements. The nutraceutical market is one of the fastest growing section of the economy and it is expected to reach €4 bn by 2020. For this to be done, there are requirements for certain licenses.
So, it is evident that if you want to open a business of either the manufacturing and selling of the nutrition and for healthcare products, now is the right time.
The Food Safety and the Standardisation ACT, 2006 governs the sale of any of the food items. Section 22 of the FSS Act states that no person shall manufacture, distribute, sell or import any of the novel food, which are genetically modified articles of food, irradiated food, organic foods, foods for special dietary uses, functional foods, nutraceuticals, health supplements, proprietary foods and also such other articles of food which the Central Government may notify, except in accordance with FSS Act or the rules that are made thereunder.
The following licenses will, however, be required to start a business of Healthcare products:
- The most important license which the businessman needs to acquire is the FSSAI license which governs all the food products sale in India. It is mandatory to obtain a food license if you are a manufacturer, trader, own a restaurant or involved in any food-related business.
- The businessman is then required to obtain a NOC from the center.
- He should then apply for Form B.
- The Registration of company with ROC – you could register LLP/ Private Limited Company.
- He is then required to Apply for PAN in the name of the company.
- The TDS to deduct tax at the source for the payments that are exceeding the authorized limit.
- Profession Tax both for the directors or the partners and the employees.
- VAT or the Service Tax depending on the business model, in case you hold stock and if you also have listing services then both the licenses, will be needed.
- However, Selling of non-OTC products online is not permitted.
- The trademark is required for the brand name in order to start your online domain.
- Online domain, SSL, and the related clearances – All of these kinds of documents will be required for online site optimization, marketing, etc.
Related Article: How to get a Food License in India