Starting a food business the following rules and compliance is not just for the statutory authorities, it ensures a sense of safety and security about the food and beverages being delivered to the customers. This helps the reputation of the institution and prompts loyal customers to refer your food business to their friends increasing outreach and footfall of the food business.
The Full Checklist
The responsibility of providing safe food and deploying hygienic preparation practices forms an essential part of any food business. In order to achieve this, the Food Safety and Standards Authority of India (FSSAI) have laid down guidelines and compliances for safe practices. In addition to this, there are other taxation and safety-related licenses. Let’s look at the compliance requirements.
Before starting a food business in India, every FBO has to register their business by obtaining a FSSAI license. The FSSAI, as its name suggests is in charge of maintaining the safety and up to standards quality of the eatables produced by organizations in accordance with the FSS(Food Safety and Standards) Act, 2006. Like we mentioned before, before commencing any business activity related to food and beverages it is advisable to obtain the FSSAI license.
The FSSAI license is basically of 3 types.
- Central FSSAI License -The central FSSAI license is applicable for importers, Head offices with operations in multiple states as well some other businesses
- State License- State license is applicable for retailers, distributors, retailers, repackers among others with turnovers more than 12 lakhs
- Registration- Registration form A is for petty food businesses or for small Food businesses with turnover less than Rs. 12 lakhs
Shop and Establishment Registration
In accordance with the Shop and Establishment Act for the particular state, all FBOs have to obtain this registration to start their business as a commercial marketplace.
The VAT and Service Tax regime ended with the introduction of GST on 1 July 2017. Every new business has to acquire GST registration in order to commence business activities for taxation purposes. Businesses with low turnovers can also avail the composition scheme in order to be free from intricate return compliances and rules under the GST regime.
Liquor/ Bar License
In case your food business also serves alcohol, appropriate Bar and Liquor license. The government provides a checklist of documents for all luxury items like alcohol to be submitted in order to obtain the appropriate license.
Fire Department NOC
The Fire Services Act of the state or corresponding building bye-laws dictates that it is advisable to acquire a NOC(No Objection Certificate) from the Chief Fire Officer. The FBO also have to fill out a questionnaire related to fire safety rules and regulations.