Due to government support for startups, industries like food delivery have seen a surge in opportunities. Consider the licensing requirements if you are interested in starting a food delivery business. It is a low investment, low risk option due to the growing demand for convenient meal delivery. In this article we will explore the essential license required for food delivery business in India.
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What is a Food Delivery Business in India?
Food delivery businesses make it convenient for customers to get the meals from various dining restaurants, cafes, and hotels. These services enable customers to order their favorite dishes from their homes or offices using mobile applications. The popularity of food delivery services has increased due to their convenience and ease of use. If you plan to embark on a food delivery business, it is important to be aware of the license required for food delivery business in India.
What are the Benefits of Food Delivery Business?
Food delivery is a smart business choice due to various benefits which are as follow:
- Growing Market: The industry is expanding rapidly, promising continuous growth.
- High Demand: People prefer convenience with busy schedules, making food delivery in high demand.
- Low Startup costs: You can start without substantial overhead costs like renting space.
- Multiple Revenue Streams: There are various ways to earn beyond delivery fees.
- Adaptability: The business can easily adjust its offerings to meet customer preferences.
- Flexibility: You can change the menus and prices as needed to stay competitive.
- Scalability: It is easy to expand your business by partnering with multiple eateries.
- Tech Integration: Advanced technology streamlines operations for efficiency.
- Low Entry Barriers: Anyone who is motivated can start a business in this industry.
- Community Benefit: By supporting businesses in your local area, you contribute positively to your community.
License Required for Food Delivery Business in India
If you are planning for food delivery business in India then you should be aware of different kinds of permissions, registration and license required for food delivery business in India as given below:
1. Business Registration
- Private Limited Company: A company with limited liability for its shareholders.
- Public Limited Company: A company with shares open to the public for purchase.
- One Person Company: A company with a single owner who has limited liability.
- Limited Liability Partnership Firm: A partnership where partners have limited liability.
- Partnership Firm: A business owned by two or more individuals with shared liability.
- Sole Proprietorship Firm: A business owned and operated by a single individual with unlimited liability.
2. GST Registration
If the turnover of your business exceeds the GST threshold, you are required to register under GST to pay taxes regularly. If you are below the threshold but want to collect GST from customers, you can voluntarily register under GST. This ensures compliance with tax laws and the ability to legally charge GST to customers.
3. FSSAI License
The Food Safety and Standards Authority of India (FSSAI) License is mandatory for food related businesses in India. It ensures compliance with food safety norms and allows businesses to operate legally. There are 3 types of FSSAI licenses: Local or general food licence, state FSSAI license, and central FSSAI license.
4. Health Trade License
A Health Trade License is compulsory for businesses that impact public health especially food establishments. It demonstrates that the food prepared is complying with safety and sanitation standards which ensure to both consumers and authorities that it is safe for consumption. The specific requirements for this license vary by location and are handled by local municipalities. Therefore it is essentially a localized permit with regulations that differ from region to region.
5. Shop and Establishment Certification
Starting a business in India requires obtaining a Shop and Establishment Certificate. This certification varies by state, so it is important to comply with your state’s regulations, especially for online food delivery services. It serves as official documentation for registered address of your business. Generally. Obtaining this certificate takes approximately 4-5 weeks.
6. Signage Licence
To attract customers and increase brand recognition, businesses need to effectively market their brand through various forms of advertising materials, including posters, advertisements, and images. To engage in such marketing activities, obtaining a Signage License is essential. This license can be obtained by contacting the Municipal Corporation of local area.
7. Register for Trademark
In competitive food market of India, a trademark is important to differentiate your brand and establish a strong presence. It serves as a unique identifier which separate your business from the crowd. By obtaining a trademark, you not only enhance brand recognition but also build trust, reliability, and credibility among consumers. This contributes to the growth and success of your food business.
Documents required to Start Food Delivery Business in India
In addition to license required for food delivery business, starting a food delivery service in India requires the following documentation:
- PAN Card (Permanent Account Number)
- Proof of identity (Aadhar card or PAN card) for the business owner
- Proof of address for the business owner
- Bank details for the business owner
- GST registration
- Business incorporation certificate
- Food License
- No-objection certificate from the landlord (if the business operates from a rented space)
These documents will facilitate a seamless launch for your food delivery operation in India.
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Conclusion
The popularity of online food ordering has led to a surge in food delivery businesses. Customers prioritize quantity and cleanliness. Establishing a food delivery service entails administrative tasks like securing registrations, permits and license required for food delivery business in India.
Frequently Asked Questions (FAQ)
Both Zomato and Swiggy need a Food License to deliver food in India. This requirement is set by the Food Safety and Standards Act (FSS Act) of 2006.
Out of the various laws that govern the food delivery industry in India, the FSS Act of 2006 is the most important. It sets the rules and regulations that businesses must follow to ensure food safety and quality.