FSSAI License

The Umbrella Approach to Chocolate Business in India

calendar16 Jun, 2020
timeReading Time: 4 Minutes
Chocolate Business in India

Chocolate business in India is on the rise due to the enormous demand for the soul satiating delight known as chocolate. The craze for chocolate in all age groups is going to soar higher and higher as every single bite of chocolate warms the hearts of one and all. Also, when it comes to igniting the spark in ceremonies like weddings, school parties, birthday celebration parties, etc., chocolates do the job. Therefore, most of the entrepreneurs have transformed their bittersweet passion into a joyous money-making ride.

Note: By going through various research and reports, we have concluded that the chocolate business in India would reach around USD 1,830 million by the year 2024.

Chocolate Business in India: The Beaming Future Ahead

The acceptance of Chocolate business in India and at a global level ensures that in the forthcoming years, the chocolate business would experience an upward surge in the profitability as well as demand. As chocolates are one of the most popular food products, they stimulate our cravings and captivate our senses. What’s more, chocolate acts as a great stress buster, and the nutrient-rich composition grabs the attention of many.

A wide variety of chocolate products are available in the market, and every day we come to know about the launch of new divine food, i.e., chocolate. Acquiring licenses and permits for running a chocolate business in India has become mandatory.

The preparation of chocolate products involves cocoa and other materials of similar types, sweeteners, dairy products, as well as different permitted flavors and food ingredients. Therefore, following the safety measures are essential for chocolate business owners. As chocolates are a part of food products, you can’t even think of conducting this segment of business (Chocolate business in India) without FSSAI License and other essential permits. As per food safety guidelines set by FSSAI, the product must get examined as well as checked before getting final approval so that when it reaches the hands of children, it must be fit for their consumption.

Read our article:The Untapped Gold Mine of Frozen Food Business in India that Everyone Should Know

Permissions and Licenses Required for Running Chocolate Business in India

If you are interested in running the chocolate business in India, you must obtain the permissions and licenses cited below-

Licenses Required for Chocolate Business

Company Registration

Chocolate business in India can get established as LLP registration or as a sole proprietorship. If you are initiating this business as a private limited company, then you will be getting legal existence along with access to several funding sources. If you are giving your nod to sole proprietorship or LLP, then you would have to go through the least compliances along with its associated formalities.

Health Trade License

Food business operators having their soul in the chocolate business must attain the Health Trade License. The Health Department of the Concerned State or Municipal Corporation is the provider of Health Trade License. It substantiates that all the food business operators are meeting all the norms related to safety and hygiene. After the required documents would get submitted, Health Trade License will be issued in 60 days only. If a food business operator fails to acquire this license, the authority to cancel the license can get implemented from the Municipal Corporation end.

FSSAI License

FSSAI License, governed by FSSAI under FSS Regulations, 2011[1], is unmissable for the food business operators in all types of food businesses. Thus, it doesn’t matter a food business operator is dealing with whatever food products; obtaining a license via FSSAI is crucial. FSSAI license depends upon the annual turnover, size, location as well as the nature of the business.

  • FSSAI basic registration is the requirement for those business operators whose annual turnover is not exceeding the amount of Rs 12 lakh.
  • FSSAI State license is the requirement for those business operators whose annual turnover exceeds the Rs 12 lakh figure, but the maximum limit is up to Rs 20 crore.
  • FSSAI Central license is the requirement for those food business operators whose annual turnover exceeds the monumental figure of Rs 20 crore.

The FSSAI license is a unique license number having 14-digit, which must get impressed on all the food packages. It makes sure that the quality of the product is matching pace with all the FSSAI requirements and safety measures, and thus, it is dependable for ingestion as well. Penalties under the FSS Act, 2006 would get imposed on those FBOs who haven’t taken the license as it would get considered as a legal offense.

GST Number

Applying for GST registration becomes mandatory in those cases where you will be rendering taxable services to your customers. Also, you need to open a Current Account with the bank in such cases.

Trademark Registration

Attaining Trademark Registration is vital for those business owners who want to provide a layer of security to their brand name of chocolates. This registration safeguards your brand name, and it won’t let others take benefit from your brand name anytime. The period of validity for the trademark is up to 10 years.

Labeling of Vegetable Fat

FSSAI has issued guidelines with regard to labeling that if the vegetable fat got used in the chocolate, it should get listed in the specifications of the wrapper of the food product.

Trade License from Local Authority

You must take the Trade License from the local authority for running the chocolate business in India.

Import Export Code

Acquiring the IEC Code from concerned authority is a requirement for those food business operators who are gearing up to commence import as well as the export of chocolate for the business enhancement at the global level.

The Final Words

The scaling chocolate business in India is gaining acclaim due to changes in consumers’ lifestyle and their cravings for attempting varieties of chocolates. Furthermore, bringing all the licenses and permits on the table would simplify the process for chocolate business owners. Our Corpbiz experts would assist you in obtaining FSSAI license, trademark registration, and other permits as well.

Read our article: Stepwise Guide to Start a Healthy Snacks Business in India

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