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
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 approach like cloud kitchens (virtual restaurants with no dine-in space)?
- Consider the advantages and challenges of each model. Dhabas might attract local customers, while cloud kitchens could tap into online delivery trends.
- Your chosen strategy will influence your operations, marketing, and overall business direction.
3. Make sure you have the necessary licenses and permissions.
- It’s essential to comply with legal requirements and regulations. Depending on your location and business model, you may need permits related to food safety, health, zoning, and more.
- Research and apply for all the necessary licenses and permissions before you start operations to avoid legal issues down the line.
4. Control ingredient sourcing, stock levels, and packaging
- Plan how you’ll source ingredients. Whether it’s local produce, speciality imports, or a mix of both, ensure a reliable supply chain.
- Keep a close eye on stock levels to avoid running out of essential items. Regularly update your inventory and reorder items as needed.
- Effective packaging is crucial for maintaining food quality during delivery. Choose packaging that keeps the food fresh and presentable.
- If you’re offering delivery services, hiring a reliable and responsible delivery crew is vital. They represent your business to customers.
- Look for individuals who are punctual, courteous, and have a good understanding of the local area for efficient deliveries.
- Provide clear instructions and guidelines to ensure smooth and safe delivery operations.
6. Establish your website or online ordering system.
- In today’s digital age, having a user-friendly online platform is essential. This could be a website, mobile app, or both.
- Your platform should display your menu, prices, and contact information, and allow customers to place orders easily.
- Investing in a professional and appealing online presence can attract more customers and streamline the ordering process.
7. Choose the appropriate payment processor for your catering business
- Offer a variety of payment options to cater to different customer preferences. This might include credit/debit cards, mobile wallets, and online banking.
- Choose a reliable and secure payment processor that ensures smooth transactions and safeguards customer financial information.
- A seamless payment experience can enhance customer satisfaction and encourage repeat business.
Food as such has no great magic in it. The magic lies in the miraculous hands that cook the food. After having followed the above steps, the next best thing to do is launch that foood
FAQs
What are the basic legal requirements for starting a homemade food business in India?
- Register your business as a legal entity (e.g., sole proprietorship, partnership, LLP, or company).
- Obtain a Food Safety and Standards Authority of India (FSSAI) license or registration.
- Adhere to local municipal laws and obtain any necessary permits.
- Ensure compliance with the Food Safety and Standards Act, 2006.
What is the FSSAI license, and why is it necessary?
- Basic Registration: For small businesses with an annual turnover of up to ₹12 lakhs.
- State License: For businesses with an annual turnover between ₹12 lakhs and ₹20 crores.
- Central License: For larger businesses with an annual turnover above ₹20 crores.
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