Ultimate Guide to Starting a Food Business in India

Posted July 25, 2019 by akt212

Starting a food business in India is not as simple as it seems to be. There are lengthy procedures including incorporation, investment, five or so different types of licenses to be acquired and then the actual paperwork of completing all of these.

This can be related to the business that Indo-Romans had and Arabia’s vivid business. In the past Romans and Arabian have collaborated with Indians during the first century of the Common Era (CE) for the same business.

We will not discuss much of its history and start connecting with our topic. From the introduction, we can conclude that in general, the majority of businesses started by Indian entrepreneurs would be some of the other types in the food industry.

You can seek our help to save your intellectual property or to save your funding from venture capitalists or manage your venture according to MCA regulation and to meet your business requirement.

You can connect with us for the below-mentioned services:

Register a Company
PF Registration
MSME registration
Income Tax return
FSSAI registration
Trademark Registration
ESI Registration
ISO Certification
Patent Filing in India
So what’s cooking inside India’s 4 trillion rupees plus industry? The checklist for starting your business is very important in India for meeting legal obligations. Entrepreneurs who are interested in opening a small scale business should keep a note of these points.

Food industry involves many factors because it covers a big domain but we can talk about the factors one by one. The restaurant business is the most popular and easy to manage the business.

Now we can look at the various regulatory challenges. First of all, one has to be sure of the type of business that he wants to register. As an individual one can register the business as a sole proprietorship, private limited company, LLP or as a single person company

A company needs to be registered with a title depending on the purpose and requirements. The incorporation cost of OPC and LLPs are comparatively less than other forms. Registering under given two formats can help reduce the cost of registration.

The next aspect of the business is financial input.

This can be classified into two types, either investment from their own pocket or through a bank in the name of the loan. This can be easily availed as there is an easy window available for loans for start-ups and MSME. Many banks give credit guarantee to the MSME sector through CGTMSE which is given by small and medium enterprise ministry.

Before keeping taking a foot into the food industry, remember that licensing is an important step and covers the following:

LICENSE OF FSSAI: Food safety and regulation is maintained by FSSAI in India. It is a statutory body which gives license for food safety and gives a sense of confidence to the customers regarding the safety of food. This license also stands as a reputation for being a restaurant which has followed all the protocols.
License for liquor: In order to attract customers to many restaurants in the urban region are offering liquor mainly. Liquor sale is not dependent on the price and profile of the restaurant. It also depends on the city and locality, for instance, if the restaurant is somewhere near the temple or school then availing liquor license would be next to impossible.
Health/trade license: This license is being given over the concern of public welfare by the local municipal authorities.
Eating house license: it is another form of license required to open the restaurant and it is valid over three years.
Shop and establishment act: It is one of the most important steps which come next in a sequence which needed to be taken within 30 days of the commencement of the shop to procure other mandatory licenses.
Trademark: The shop’s logo, brand name, etc. should be registered in compliance with trademark act so that goodwill of the shop is not misused after establishing the shops.
Signage license: The shop also needs to get which is necessary to keep any sign or board in the shop.
Registration under Goods and Service tax: is necessary to run the business without any governmental hindrance.
Other miscellaneous regulations: Other regulations to be addressed include:
Fire department NOC
Music license
Lift clearance
Environment clearance certificate
Document Required
The list of required documents are mentioned below:

PAN card
Aadhaar Card
Details of the employee
Address proof of the partners
Partnership deeds
Passport size photo
NOC from landlord
Site plan and layout
Water and power bill
Water quality report
Employee’s medical certificate
Property tax proof
Certificate for structural stability
Completion certificate for new constructions
Trade license from the local authority
Kitchen layout plan
Contact details
Food category list
CCTV installation undertaking
Amusement undertaking
Lease deed proof
Latest bank statement
Digital signature
Stated in a general scheme, these are the Documents which a person should have when he wants to start a food industry business so that he can submit it to authority whenever needed.
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Categories Business , Food , Restaurants
Tags profitable food business , food safety , health licence , food Industry , high profit food business
Last Updated July 25, 2019