The web-based food delivery services in India have a promising future. The development of online food ordering companies is a perfect example for those who are willing to set up their food delivery services on the online channel. In the past few years, most aspiring startups have started considering this promising business idea seriously.
Overview on the Growth of Online Food Delivery Services
Given legitimate sources, almost 44% of the consumer from America prefers buying from web-based food delivery platform at least once in a month. All of a sudden, Indian customers have started relying on online food delivery services for getting a desired meal.
By taking this segment’s potentiality into account, we have one query to put forward- isn’t it fair to invest in online food delivery services in a country like India where most users utilize smart devices quite prominently?
Online food delivery services offer the privilege of booking food online, which is technically more convenient and cost-effective than conventional methods. Initially, the trend has gained traction in urban & semi-urban regions, but ultimately, it has found momentum in other parts of India.
All the web-based food platforms require obtaining an FSSAI license for the seamless running of the food-based business in India. As per the FSSAI guideline, availing of the FSSAI license is a compulsory undertaking for ensuring that standard & safe food is reaching up to the masses. There is also the compulsory norm to comply with standard regarding a properly trained staff and healthful working space.
Read our article:What are the Legal Obligations for Running a Food Delivery Application in India?
Basic Licenses/Registrations for Establishing Online Food Delivery Services in India
To set up successful online food delivery services in our country, the aspiring entrepreneurs must ensure conformity with the following requisites:-
- Get your business registered as Sole Proprietor Firm, Pvt. Ltd. Company, Partnership Firms, or a One Person Company.
- It is imperative to opt for GST registration for operating eCommerce portals. GST registration applies to all e-commerce operators, as stated under Section 2 (44) of the CGST Act of 2017, regardless of their annual turnover.
- The vendor agreement must be drafted and duly signed with all the suppliers. The trade-based norms, in addition to relevant provisions applicable, should be enclosed in that.
- A record of terms & conditions should be drafted to limit the scope of the website’s operation in use or used. Privacy policy requires to be drafted accordingly to avert penal provisions of Section 43A- Information Technology Act, 2000. It is important to outlines data privacy agreements as well as the user agreement to ensure transparency.
- A deed or a Memorandum of Understanding’ ought to be signed with the manufactures and sellers. It should reflect the affirmation that all the manufacturers or sellers shall abide by the rules mentioned under FSSAI Act. The Memorandum of Understanding must consolidate the FSSAI Food License number.
- All the FBOs, including online food delivery services, must opt for the Central FSSAI License. It is important to avail such a license for the seamless supply chain comprised of the business operator’s head office, storage, transporters, manufacturers, and distribution units. If these establishments fail to meet the FSSAI guidelines, they might encounter severe penalties imposed by the authority.
- Shop Act license is perhaps the most basic legal registration that one must obtain within one month of starting the business operation. This license is state-specific; thus, you can obtain it from the local authority after submitting the application for the same to the inspector of the respective areas. The authority will then inspect the applicant’s information and document and might appoint the official to conduct the onsite inspection.
- Heath Trade license is another important registration that enables the business to stay in line with the existing health and food norms. You can reach out to the respective Municipal Corporation of your city to apply for this license.
- Fire NOC is important for online food delivery services having an in-house kitchen facility under their belt. It is issued by the Fire Department of respective states. High-rise building with more than 15 meters in height is supposed to avail Fire NOC from the said authority.
Additional License for Online Food Business Services
Below is the list of government[1] based registrations that are not mandatory in nature, but adheres to utmost importance for business seeking seamless growth in future.
Signage License
The need for promoting your offering or brand through word of mouth, poster, testimonials, and images that is perfectly understandable. After all, setting up a brand image on the online platform is important to your business existence. To employ multiple promotional planning, you will require a signage license that can be availed from the local municipal corporation.
Trademark Registration
A trademark is an initial, logo, or name which renders a distinctive identity to the product and helps it gain repo over time. A mark that sets out services apart from the rivals is regarded as a service mark.
Since your work of field is online services, you require ensuring that you have a registered trademark to safeguard your logo against any form of malpractices. Trademark registration is valid for an entire class of goods or services, including online food delivery services.
Conclusion
Our CorpBiz professionals are here to provide backup in case you require any assistance on account of licenses and registrations. Embrace our class-leading and cutting edge service concerning establishing an online food ordering services in India and a new benchmark in the food sector.
Read our article:Documents and Licenses Required for Food Delivery Business in India
