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How to set up food chain business

To start a food chain business in India, it is compulsory to obtain the FSSAI registrations and licenses at the onset of the business.

How to set up food chain business

Friday August 10, 2018,

4 min Read

Food Chain Business, <i>Image Source:Pexels</i><br>

Food Chain Business, Image Source:Pexels

A food chain business would mean that the unit is multi-cuisine as well as present in multi-locations. A food chain would require the owners/partners/promoters to invest in fixing proper and appropriate locations, hiring correct and well-paid employees as well as brainstorm on the menu and cuisine. To start a food chain business in India, it is compulsory to obtain the following registrations and licenses at the onset of the business.

Licenses and Registrations Required

a. FSSAI License - For any kind of food manufacturer, storage unit, transporter, retailer, reseller, marketer, distributor, and relabellers, it is mandatory by Indian law to procure an applicable license from the Food Safety and Security Authority of India. The FSSAI is headquartered in New Delhi and has state-level offices in all the states and union territories. As per the FSS Act, 2006,

• All Food Business Operators must be licensed/registered to carry out operations

• One premise with multiple kinds of business is eligible for one license/registration only

• Every food operator must comply with the rules and regulations and conditions of the License/registration

With the food chain business having a national presence the owners/promoters need to obtain the Central license as well as separate state license in all the states it is operating from. To obtain these licenses the business entity can apply online. Other than submitting the license fees and Form-B, some of the necessary supporting documents that need to be submitted for obtaining the central and state licenses include:-

• Blueprint plan of the processing and manufacturing unit

• A complete list of director/partners/proprietors with full address and contact details. Their Photo IDs and address proof.

• List of equipment, machines, numbers, capacities, and horsepower used

• Analysis report of water from a recognized health laboratory, mandatory for manufacturing and processing units

• Ownership proof or lease agreement of the premises

• Partnership Deed/ MoU/AoA

• Source of milk

• Source of raw material for meat

• Food safety management system

• Recall plan, if applicable

• Supporting document for turnover

The FSSAI Central License and the state license are generally received within 60 days of filing application. The authorities will inspect all the premises of the food chain as well as test the food is manufactured. In case the 14-digit FSSAI number is not received within the stipulated period, the business operations can be started without waiting any further. Once the FSSAI license is received it needs to be displayed at a visible location within each food chain premise. Along with the number, the applicable hygiene standards followed are also to be put up using the Food Safety Digital Boards

b. Liquor License is required if the food outlet intends to serve liquor. The license is obtained from the Local Excise Commissioner. There is a huge penalty if liquor is served in the premises without this license.

c. Health License – to be obtained from the State Municipal Corporation or the Health Department. This is issued to safeguard public health.

d. Eating House License from the Licensing Police Commissioner of each city.

e. No objection certificate from the Fire Department to safeguard from fire hazards

f. In case a lift is operating in the premises, a lift clearance from the electricity Inspector is required.

g. Music License from PPL for playing pre-recorded music

h. No objection certificate from the Environment Department for safeguarding the environment.

i. Get the GST registrations done as it is mandatory for any type of business that is operating in more than one state in the country or has an annual turnover of more than Rs. 20 lakh.

j. Register for the MSME Udyog Aadhaar number as a small or medium scale enterprise. All entities enrolled and registered with the MSME Ministry are provided with extra benefits in order to encourage MSME business in the country.

k. Register under the Shop and Establishment Act as it is mandatory for food manufacturing business. Depending upon the number of employees, the cost of the registration differs. Some of the important documents that need submission is- pan card and identity proof of the owner and details of all employees.

We provide services related to all obtaining mandatory registrations and license related activities. We help our clients get their companies registered, GST registrations and filing of returns, MSME registrations, Trade licenses etc.

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