Legal Permissions for starting a home made food business in India
Since the lockdown began, many people have started selling food items that they have made at home, according to the Food Safety and Standards Authority of India (FSSAI). However, since then, very few of these businesses have been registered. Therefore, according to the FSSAI, selling homemade food items without a license or registration is punishable by a fine of up to 5 lakh rupees and up to 6 months in jail. Businesses with sales below Rs. 12 lakh must register with the FSSAI, while those with sales of Rs. 12 lakh or more must obtain a license. If you want to bake and cook, you might want to consider launching a food business from your home. By starting a home-based online food business, you can use your passion to make some good side income. However, just like starting any other type of business, starting a home-based food business requires extensive planning and research. In addition, you must make sure that your home-based food business complies with all applicable legal requirements. Licenses Needed to Launch a Home based Food Business Shops and Establishment Certificate: This document is necessary in some states, including Maharashtra, if you wish to operate a restaurant at your house. FSSAI Approval: All food-related firms in India are required to have a license from the Food Safety and Standards Authority of India. You must choose the category of license you want to obtain based on the nature and size of your firm. The FoSCos FSSAI will typically only demand a simple registration for home-based food service start-ups. GST Registration: You must choose a new online GST registration if your establishment generates revenue beyond the annual registration level. Once you have a GSTIN, you must assure compliance by filing all of your returns on time. Trade License: If you intend to run a cloud kitchen, a trade license may be necessary for food businesses. With the assistance of professionals, you can apply for and get this from the neighborhood municipal office. Fire and Safety License: Since you’ll be using fire to cook, the Fire Department’s approval might be necessary. An NOC from your local food and health department or society. Brand Registration India: You can choose to trademark your name or emblem if you wish to protect your brand’s uniqueness. This stage might be chosen later, when your brand starts to expand and you have extra money. Signage License: You will need this license from your local municipal corporation if you wish to advertise your products. Eating House License: You may need an eating house license if you want to operate a restaurant at home. You will require the State Police Commissioner’s approval in order to receive this license. Environmental Clearance: Depending on the situation, you may also need an EC Certificate from the State Pollution Control Board. What is the Role of FSSAI registration? The FSSAI Registration is a 14-digit registration or licensing number found on all food packaging and is unique to each food business. The registration process is intended to strengthen FBO accountability for assuring the safety and consistency of their food goods. The Food Safety and Standards (Licencing and Registration of Food Businesses) Regulations, 2011, regulates the requirements and norms of getting a food business licence or certification. Important Information about FSSAI Registration for Selling Homemade Products in India 1. Mandatory Registration:- All businesses involved in selling homemade foods must register with the Food Safety and Standards Authority of India (FSSAI) or obtain basic FSSAI registration. If your annual revenue exceeds Rs. 12 Lakh, you are required to obtain an FSSAI Licence. 2. Different Licence Categories:- Depending on your annual sales, you fall into different licence categories. Businesses with annual sales between Rs 12 Lakh and Rs 20 Crore need to acquire their FSSAI licence from the respective state’s FSSAI office. Those with sales exceeding Rs 20 Crore must apply to the Central FSSAI office. 3. State-Specific Validity:- After successfully completing the registration process, the licence issued is valid only within the state where you initially applied for it. It cannot be used for operations in any other state. 4. Registration Duration and Renewal:-FSSAI registration is typically valid for a period of one to five years and you can choose to renew it if needed. It’s important to submit a renewal application at least 30 days in prior before the current FSSAI registration expires. 5. Late Renewal Penalty:- If the renewal application is submitted after the expiry date, a penalty of Rs. 100 per day will be imposed for the delay. 6. Legal Consequences:- Selling homemade food without proper FSSAI registration can result in fines of up to Rs. 2 Lakh. Ensuring timely and accurate registration is essential to avoid legal consequences. Documents Needed to Launch a Home-Based Food Business A duplicate of the individual’s identification Proof of the individual’s residence Proof of the business location’s address If the space is rented, a no-objection certificate from the owner Records of bank account transactions Taxpayer Identification Number (TAN) Identity cards like PAN card and Aadhar card Certificate for Goods and Services Tax (GST) Small photographs for passports Diagram and layout of the building Assessment of water quality Inventory of food groupings Steps Guide For Launching A Home-Based Food Business 1. Select the appropriate cuisines- When starting a food business, think about the types of food you want to make and sell. Choose something you’re good at and that people want. Also, offer unique dishes that are popular. If many places already serve a certain type of food, make sure yours stands out. For example, if there are already lots of Indian restaurants in your area, focus on making your food different. Make your best dishes the main attraction and add other popular dishes to your menu. This way, you’ll have a special place in the market. 2. Define your company strategy: Dhabas, cloud kitchens, or something else Take time to decide on the type of business model you want to follow. Are you aiming for a traditional setup like dhabas (roadside eateries) or a modern
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