The trend of cupcake business in India has clinched momentum in recent years. As Indian people have got exposure to desserts sold in the international market, the scope of cupcake business is increasing with each passing day. Structuring of a cupcake shop depends upon the business objectives, short-term plans, and long-term plans of the entrepreneur. Retail, as well as delivery businesses, are driving the cupcake craze from the front.
The unstoppable growth and progress of the cupcake business in India has prodded many small business owners to commence their cupcake business within the boundaries of India. The rising demand for processed food has boosted the demand for baked goods. Consequently, various bakeries are evolving at a tremendous rate in India, encashing on the ample opportunities and widened scope in the Indian market. Those people who have initiated their small business setup from their homes are establishing their cupcake business and making the giant leap. The conducive environment to set up a business and perform business operations in India has given hope to many entrepreneurs.
If you want to run a successful cupcake shop in India, apart from being the best in the kitchen department, you should implement efficient business management skills. In order to run your business in the long-run, understanding consumers’ mindset and their preferences, along with meeting their expectations with regard to cupcakes, are extremely important. Along with baking, you must be well familiar with the cupcake decorating. You have to maintain the quality of the bakery items along with their deliciousness to give a taste of happiness to your consumers.
Process of Commencing a Cupcake Business in India
The process of commencing a cupcake business in India initiates from finding the perfect business idea. Simply registering it and getting specific licenses is not enough. By making a proper plan for your cupcake business on the ground level, you will be able to set up a roadmap for your business.
In the process of setting up a cupcake business, it’s vital for you to understand that there is no requirement of a cosmic investment of capital to initiate a cupcake business. Furthermore, it’s a perfect business choice for housemaker as it is manageable with limited human resources. You must know that you can show your inclination towards any business model like LLP, proprietorship, Company, and sole ownership and opt for it as per your wish.
- If you are running an independent bakery or a proprietorship or a partnership, there is a requirement of registration of company business. These businesses generally belong to the unorganized category.
- If you are conducting your small business from home, you can move ahead with a Limited Liability Partnership or a one-person company. It is the lucrative option available for a home-based cupcake business. Both options serve the promoters of the business by granting limited liability protection to them. Besides this, it is one of the proven crucial aspects of any food commodities-related business.
- If a bakery has many associate outlets or a bakery chain, it should get set up as a private limited corporation or a limited company. It would help them in gaining access to several sources of funding that is much-needed for business expansion purpose.
*Before bringing your business on the move, the pre-requisite is to get registration along with the specific licenses.
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GST Registration for Setting up a Cupcake Business in India
- Those who are eyeing to set up a cupcake business in India should apply for GST registration. One needs to apply for goods and service tax registration in the state where the business has been established as GST is a state-level tax. If the branches and outlets of the business have spread its wings in multiple states, one should apply for GST registration in those numerous states.
- Goods and service tax in India has brought a lot of transparency in the taxation system and has also streamlined the process of taxation in India. It has covered all the limitations of the previous taxation system.
- If you are rapt in creating a unique identity of your business apart from safeguarding your business, then Trademark Registration is the key for you. Thus, acquiring a trademark registration for the smooth functioning of your cupcake business in India is necessary.
FSSAI License for Cupcake Business in India
- For businesses related to food products, obtaining an FSSAI License in India is the most important license. Therefore, if you are planning to operate a cupcake business in India, then you must look for getting the FSSAI license.
- If the Food Safety and Standards Authority of India found a food business not complying with its rules and regulations, then the food authority has the power to impose the substantial penalty on the food business operators. Violating FSSAI rules for food businesses will not be acceptable at all.
- Any individual person or an entity engrossed in operating a food processing, distributing, manufacturing, as well as packaging business, should obtain this license as a priority. Retaining an FSSAI food business license is mandatory for a cupcake shop or a bakery store to sell cupcakes in India.
- FSSAI Registration grants power to small food and bakery businesses to sell bakery made cupcakes as well as cakes of different types to retail chains for selling to final consumers. Heavy penalties of a fine between 4 to 5 lakh rupees along with imprisonment for six months will be the probable consequences of not acquiring an FSSAI food business license.
Acquiring all the required licenses and registrations is mandatory for all the cupcake business owners or bakery shop owners to sell, distribute, and manufacture cupcakes in India. All establishments serving cupcakes would get verified by the food authorities to check whether they have obtained the license as well as registration or not. Obtain all the licenses and permits to run a money-minting cupcake business in India. Our Corpbiz team comprising of experts will be at your disposal if you seek any advice related to obtaining FSSAI License in India.
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