5 most important food licenses for startups

Planning to open a food startup? Let us help you with the legal! Opening a food startup can be tricky in India. There are many mandatory licenses which you need beforehand. These licenses are for the safety of the establishment, employees, and customers and also give confidence to the customers regarding food safety and regulations.   

To begin with, here are the 5 most important licenses that you need before taking the next steps to build your food business!

FSSAI License

This is the first and the most important license to hold if you want to have a food startup in India. The Food Safety and Standards Authority of India not only authorizes you to run a restaurant but also gives confidence to your customers. It gives people the assurance that the establishment is safe and maintains food safety standards. 

FSSAI license can be applied for through their official portal. The inspection will take between one week to one month depending on the paperwork.

There are three types of FSSAI registrations- 

FSSAI Registration – For food business < ₹12 lakhs revenue/year.

State License – For food business > ₹12 lakhs and less than <20 crore revenue/year.

Central License – For food business > ₹20 crore revenue/year.

Eating house license

Planning to open a public restaurant, this one is very important for you then! You can apply for this license online. You can easily fill out the application along with the required documents. After that, the applicant must meet the Additional Commissioner of Police of the state for the verification of the application and the examination of documents.

This takes about 2 months to get verified, then you are good to go!

Health/Trade License

Public health is a crucial factor to be considered before opening a new restaurant. Health Trade License is a license issued by a municipal corporation permitting the operation of a business engaging in goods and services that directly affect the health of the general public.

The forms for the application for Health Trade License are available at the State’s Municipal Corporation website or Zonal Citizen’s Service Bureaus.

GST Registration

GST number is mandatory to start any company in India. If you plan to have multiple branches in different states, you need to have separate GST registrations for each branch. You can apply for GST registration in Form GST REG – 01. After this, you have to upload the necessary documents along with your signature. 

Once the documents are verified, your GST certificate will be given to you.

Fire Safety License

The safety of the workers and customers is one of the most important factors in any industry. In restaurants, where the possibility of such fire accidents is higher, it is important to get a No-Objection-Certificate (NOC) from the fire department to protect the establishment and its customers. 

The establishment has to submit an application for NOC from the state fire department. They should also have all the necessary safety equipment in place. After the inspection by the chief officer, approval is given to the place.

You can find the NOC application on the government site!

While these are five primary licenses you need to have before taking the first step towards your own startup, there are many more licenses such as - 

  • Signage license
  • Life license
  • Liquor license
  • Shop and establishment license

And the most important of all Asset insurance.

Stay tuned for more information on how to start your own food business!