How to start a food business in India

In India, now a day’s Food Business is one of the most productive and trending businesses. With the advancement in technology and presence of the e-commerce website anyone can order food at anytime from any place  and the e-commerce websites are aiding to let people enjoy their meal at doorstep and this way the food business in India has experienced a tremendous growth in the recent years with the opening of many new food joints across the country.

But before starting the food business it is important to follow the below mentioned steps setting the guidelines on how to establish a food business and the legal requirements. Failure to do so, one may end up with unnecessary legal hindrances.

• Creating a business plan: A definite business plan must be firstly created covering the strategies regarding the management & operations of the business helping to streamline ideas for future development as well as allocating budget efficiently. This should include a cost-benefit analysis of the business, industry trends, and an overview of the business.
• Selecting the business structure: For selecting the right business structure it depends on the nature of the business. However, it is important to manage & operate the business individually through sole proprietorship or one person company But on a large level it is difficult to manage it through these structures, one may also choose limited liability partnership where funds can be pooled by more than one person. or a Private Limited Company form of business is best suitable. One must proceed for the registration process depending on the type of business structure. The registration process for each of these structures is different and Legal Window can help you with the same. Post incorporation of the entity one shall proceed for the other licenses and registrations required in order to commence operations.
• Location of the packaging unit: The location of the business unit is very important because many inputs used in the packaging units in food business are perishable in nature. It is important that the packaging unit should be located at such a place that inputs are received without deteriorating its quality. The location of the packaging unit should be placed such that it is in harmony with the procurement of raw materials as well as the sale of packaged goods.
• Bank Current Account: Opening of a current bank account is important for making transactions at the time of incorporation and for future use, Though the Ministry of Corporate Affairs has provided this facility if someone incorporates a Company he/she may avail the same through the application for incorporation only as all the tax returns filed are made through current bank account dedicated to the business.
• FSSAI registration: The Food Safety and Standards Act 2006 has made compulsory food license for carrying on the business activity related to the production, manufacture, processing, distribution, sale, import or export, and stock any other food article or beverage. There are specific rules and regulations defined for the dairy business, meat processing units and hotels. Multiple declarations and certain resolutions are to be filed at the time of application for registration.

HIGHLIGHT ON WHAT IS FOOD BUSINESS

A food business covers all the areas be it manufacturing, importing, processing, packaging, storing, selling or distributing any kind of food in India. It covers the following food services to the general public:

• Restaurants
• Catering Services
• Bakery
• Confectionaries
• Cafes
• Warehouse
• Homemade Food Businesses such as homemade chocolates, pickles, jams, etc.
• Food Trucks

If any food business which has made an online presence is called FoodTech.

In this article we will drive you towards the path of running your food business smoothly by educating you regarding the registration process as well as the other license required.

Business structure:

Once you have finalized the legal structure of the food business you must go ahead with the registration process. The most preferred as well appropriate business structure in India is forming a Private Limited Company. Let us understand the process of registration of a Private Limited Company. Also if you want to get the same registered in any other business structure you can either call us at 072407-51000 or mail us at admin@legalwindow.in.

Procedure for registering of Private Limited Company for starting food business in India

• Selecting the name of the Company: You should select the name that will highlight your business area i.e. food business like kebabs and curries, parle agro, sunfeast etc.
  The name should be unique, different, eye catchy and should not match with the name of any other Company. Legal Window can help you select the desired and apt name for your food business.
  We will file an online application of the name to the Ministry of Corporate Affairs you have selected for your business securing it for a period of 20 days before filing the application for registering the company so that nobody else uses the same and in the meanwhile we will begin with the application process for registration. For the same you have to go to the second step as stated.
• Submission of documents: For better understanding we will share a questionnaire asking the documents and analyzing the type of your work and guiding you towards the best results. Also, we will be requiring the following documents for registering your food company:
  • PAN Card of the Members and Directors of the proposed Company, (Passport in case of Foreign Nationals);
  • Identity Proof of the Member and Directors (Aadhar Card/Voter ID/Driving License/Passport)
  • Address Proof the Member and Directors (Utility Bill/Telephone Bill/Mobile Bill/Bank Statement not older than two months)
  • Latest passport size photograph of Member and Directors;
  • Business Address Proof
    Owned Property : (Copy of Registry and Latest Govt. Electricity Bill or Water Bill)
    Rented/leased : Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill)

Note:-   In case of NRI or Foreign National documents of Directors and Subscribers must be notarized or apostilled.

• Drafting of documents:- The main object of the food company should have the activities related to food as the prime area for work, We will draft your charter documents i.e. Memorandum of Association and Articles of Association keeping in mind the core work of the food company and the areas in which it might expand in future as the Company can only carry out such activities which are mentioned in its charter documents.
• Submission of documents:- We will submit your application for registration of Company in SPICE+, it will include the certification from the Company Secretary or the Chartered Accountant as a mandatory legal requirement. The Memorandum of Association and Articles of Association shall also be filed online along with SPICE+ in SPICE e-MoA, SPICE e-Articles of Association.
  The Ministry of Corporate Affairs has also provided a special facility of mandating opening of Bank Account in your preferred bank, registration under ESIC, EPFO and has also provided an option to apply for the GST number in another e-form called as AGILE-PRO.
• Getting your food Company registered:- Once the field application gets approved by the Registrar it will share the Incorporation Certificate stating that your Company has been registered and you are ready to serve under the said name

There are wide variety of licenses required under India to start a food business in India

• FSSAI License: FSSAI stands for Food Safety and Standards Authority of India and under this act anybody running a food business is mandatorily required to obtain a license from the FSSAI.
  Under the FSSAI License there are three categories based upon the turnover of the business which are as follows:-

Under this an application form is sent to the Licensing Authority with the registration fees, which can be done either online or in a physical form. Upon registration, a FSSAI number is allotted to a business. This number is to be printed on every food package manufactured or processed by the business. Legal Window can assist you in getting the license easily as it is a bit  complex process.

• Registration under the Shops and Establishments Act: A food business operating under one state has to register under the Shop and Establishments Act of that particular State in which its business is located. Legal Window can help you in getting a Shop and Establishment Certificate by filling out a legal form, paying the requisite fees and attaching relevant documents to it and thereafter submitting the same to the concerned authority. Legal Window can assist you in getting the registration done.

• Health Trade License: As carrying out food business is also one of the risky businesses which have a direct impact on public health and for the same a health trade license is required. A food business that has this license from Municipal Corporation, is to be certified and in compliance with the hygiene and safety standards. It is issued by the Municipal Corporation or the health department of that particular State in which the business carries out its trade activities. Legal Window can get you the same availed just by following the basic steps.

• Liquor License: If the food business wishes to serve alcohol within the premises of the business, then it shall apply for a liquor license by filling out the relevant forms as stated by the respective authority, Legal Window can file the form on your behalf . The authority to grant this license lies with the local Excise Commissioner to any food business that wants to serve any drinks containing liquor.

• No Objection Certificate from the Chief Fire Officer: For obtaining a No Objection Certificate, the business has to submit the building plans, model of the building and certificate of an Architect, and fill out the questionnaire with the Chief Fire Officer.

• Eating House License: An Eating House license is also required for food business where the general public is admitted and any kind of food or drink is served to the public for consumption. It can be obtained from the State Police Commissioner.

• Environmental Clearance: This license is to be obtained from the State or the City Pollution Board which evaluates the scope and implications of the food business on the environment.

• License for playing any music or videos: For ensuring that the business is not breaching the Copyright inherited in pre-recorded music or songs, the food business requires a license to play music or videos. This license can be obtained from the Phonographic Performance Limited. A food business opening as a restaurant or a cafe needs this permission to play music or videos.

The legal formalities as mentioned above are required to start a food business in India which are highly complicated and also tends to confuse the food business aspirants. However, It is advised to consult a startup professional in India who can take care of every registration and licenses required to start a food business in India. Hence for the best service you can connect to the team of Legal Window by calling on 072407-51000 or emailing at admin@legalwindow.in