Healthy snacks business in India is a fastly expanding sector, all thanks to changes in consumption patterns of consumers and consumers’ quest for on-the-go snacks. Snacks are the medium through which consumers can hold their desire till the time they get their next meal. Millions of Indians believe in experimenting when it comes to food as well as snack items.
Nowadays, most of the brands are meeting consumers’ demands by taking care of the presence of ingredients having a high nutritional value in the snacks. Furthermore, consumers are giving preferences to those snacks businesses that provide nutrient-rich snacks. It’s essential for snack manufacturers to keep variation in flavors and taste along with the maintaining the health benefits like low sugar content, high protein, etc.
Is setting up a healthy snacks business in India a part of your plan? If yes, then you must try to get knowledge related to legal requirements that must get followed for the smooth running of a healthy snacks business in India. It is mandatory for snack food businesses to comply with rules and regulations set by the food regulatory body and other government authorities.
Manufacturers of food should concur with these rules and regulations and ensure consumers’ safety as well as well-being. Negligence in the process of snack manufacturing will cause harmful effects on consumers’ health. Hence, compliance must be a priority for healthy snack manufacturers. This article is a step-by-step guide for those who want to know about the entire legal process for starting a snack business in India.
Legal Checklist for Commencing a Healthy Snacks Business in India
- Commencing a healthy snacks business in India involves many legal formalities along with registrations in order to tackle legal complexities in the future course of business. Various licenses and permits must get obtained by the manufacturers of the snacks business.
- Before establishing and operating a food business, obtaining all the licenses and permits would be very crucial as there is a significant impact of food on an individual’s body. If you are showing your interest in entering into this sector, then people would know you as an FBO or food business operator.
- FBOs would have to acquire licenses and necessary permits based on their business type. This legal checklist is all about the permits along with licenses needed for commencing and operating this special category of business, i.e., healthy snacks business in India.
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FSSAI License for Running a Healthy Snacks Business in India
FSSAI license is of paramount interest to food business operators in India. Any food manufacturing unit, snack business, distributing, packaging as well as processing units should obtain the FSSAI (Expanded as Food Safety and Standards Authority of India) license. The mission of this apex regulatory body is to develop the standard food hygiene culture in the entire nation and to ensure that consumers would get the safe, nutritious as well as purity of food. It holds the responsibility for effectively monitoring and regulating food businesses (including snacks business) in the geographical boundaries of India.
There are two types of FSSAI license and one basic FSSAI registration available for food business operators operating their food business units and entities in India.
Basic FSSAI Registration
Those food business operators who are into small-sized businesses and their annual turnover are not exceeding Rs 12 lakh should acquire basic FSSAI registration. Completion of FORM-A, along with the signatures, is a mandatory thing.
State FSSAI License
All the medium-sized food business operators must obtain state FSSAI license. This license is for those businesses whose annual turnover is more than Rs 12 lakh and less than Rs 20 crore, i.e., Rs 12 lakh- Rs 20 Crore. The documentation process requires FORM-B submission along with signatures.
Central FSSAI License
Central FSSAI license is meant for all the food business operators who are elephantine businesses having an annual turnover exceeding Rs 20 crore. Along with a signature, FORM-B should get completed.
If your business having turnover more than the GST threshold limit and you are seeking ways to expand your business across many states, then ensuring GST compliance would become mandatory for running your food and healthy snacks business in India without getting entangled by legal forces.
Health Trade License
All the food business owners should make a visit to the office of the local municipality and apply for obtaining a health trade license. After acquiring health trade license from the respective municipal authority, businesses involved in health trading activities like hotels, restaurants, snacks manufacturing units, canteens, clubs, pastry, and confectionery stores, cinemas, boarding houses, spas, gyms, etc. will be able to operate their businesses. Municipality laws vary from one state to another state.
All the businesspersons must get a health trade license from the municipal authorities of their respective states. Applying online is a hassle-free process. The following documents must get submitted along coupled with filing an application form for health trade license-
- Details of the Applicant
- Permanent Account Number
- Proof of Fine, Payment Taxes Payment, etc
- Copies of Electricity and Water Bill
- Ownership Proof
- Medical Certification
- Other Documents
Seeking NOC from the Department of Fire Services
At the time of establishing a food/snacking business in India, it is legally mandatory to seek a Fire department NOC. All the states have the Fire Services Act and laws concerning the fire services. If the Fire Services Act sends a notice to your building to ensure the safety of your premise and people in the building, you must feel and submit the following documents given below.
Shop and Establishment Act
- Another important Act that comprises laws associated with the work and employment in commercial shops and establishments is the Shop and Establishment Act.
- Under the Ministry of Labor, the Shop and Establishment Act regulates working hours, paid leaves, opening as well as closing hours, public holidays, rest intervals, and more.
- Along with the application, the information that should get shared with the Area Inspector are the name of the establishment, name of employer, name of the manager, address of the establishment, total no. of employees, etc.
In addition to the required documents, the application must get submitted in the time limit of 30 days of initiating the work. The issuance of a certificate would take place after the inspector verifies the application as well as documents. Renewal of this application must happen after the completion of the validity period of this certificate, i.e., five years.
Healthy Snacks Business in India- Recent Updates
- As per the Polaris Market Research Report, it is expected that the healthy snacks market would reach around USD 40,699 million by 2026. Since health consciousness is rising in India, consumers have started consuming nutrient-rich snacks, thereby boosting the Indian market.
- As per the research firm Euromonitor, the estimated figure of India’s savory snacks business is Rs 33500 crore.
- On the 11th of February, 2020, FSSAI has planned to develop new labels for healthy snacks business in India. The food regulators, along with the food manufacturers, would endeavor to develop some thresholds for the enhancement of food items.
- On the 28th of July 2019, PepsiCo announced the investment of around 5.1 billion rupees for setting up a new snack factory in India with an objective to make the healthy snacks business in India double by 2022.
If you want to operate a healthy snacks business in India, You must comply with all the required legal rules and regulations. Our Corpbiz experts will be at your disposal for assisting you with guidance concerning FSSAI license, FSSAI Registration, and GST compliance for the creamy functioning of the healthy snacks business in India.
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