The Indian government on 23rd August 2006 renders their approval to act to consolidate all the laws regarding food and to set up the Food Safety and Standards Authority of India (FSSAI). That will make the standard on how the food items should be prepared and what should it contain from the safety viewpoint. As a regulating body, FSSAI oversees the manufacture, storage, distribution, sale of the food items.
It makes sure that the food available to the end-users is 100% safe for consumption. Besides, the body also focuses on addressing the anomalies with the food items. One has to avail of several licenses and certifications before getting into the business of homemade food selling. The local Food and Health Department can let you obtain those licenses through a predetermined procedure that includes application filing and fee submission.
Choose the Best Business Model to Maximize Profit
There are various business forms that one can adopt to transform their home into a business entity. The business entities like Private Limited Company, Sole Proprietorship, and LLP are quite popular among the business owners and upcoming entrepreneurs. The above business forms have their pros and cons. Try to analyze their viability on account of compliances and tax implications. Also, a service provider must comply with the norms of the Health Department.
Before commencing the business activities, make sure to get in touch with the local Health Department to get ascertain regulations & insurance information in your area. The Health Department would inspect the biz place which is going to utilize as the kitchen for preparing the food items.
Essential Prerequisites for Conducting Homemade Food Selling Business
Home-based businesses are bound to ensure conformity with the Food Standards Code, which includes;
- Standard 3.2.2 – Food Safety Practices & General Requirements
- Part 1.2 – Labeling & Other Information Requirements
- Standard 3.2.3 Food Premises and Equipment
Food safety officers might visit the biz place to determine whether the norms regarding the food items are being met or not.
Licenses Required for Starting the Homemade Food Selling Business
The licenses/permissions you require for setting up a homemade food selling business may vary from state to state. The list mentioned below will let you discover the type of license you would need to run a homemade food selling business.
FSSAI is also regarded as the Food Authority of India, which grants the FSSAI registration. It is crucial to obtain approval from FSSAI in the form of a license to run a food-based business in the country.
Health Trade License
A health trade license allows the entities to trade items and services that have a direct influence on public health. This license is granted by the health department of the State or the Municipal Corporation.
Shops and Establishments Act
Shop and establishment license is mandatory for all business entities, and it applies to those entities as well who conduct business activities from home.
If the business wishes to offer alcoholic beverages to their customer within its premises, then it is crucial to obtain the liquor license. One can approach the local Excise Commissioner to avail such a license.
One can avail of this license from the State or City pollution board. The authority grants this license after the in-depth analysis of the business attributes that directly impact the environment.
Eating House License
An eating house license is required by those entities who serve foods and beverages to the common public within the biz place. The State Police Commissioner issues the eating house license.
No-objection Certificate for the Society
There are plenty of licenses & certifications one has to avail for commencing the business of homemade food selling. The section below would explain how exactly you should approach to obtain a food license.
Signage licenses enable the business entities to project themselves as a brand in the given market by inserting any signs, words, or pictures. To apply for such a license, one must approach the local municipal body.
Procedure to Get Registered Under the Food License for Selling Homemade Food
Following are the Step by step process to obtain a food license for homemade food selling. Those are follows:-
The first step in the registration process is the application filing. The applicant seeking a food license is required to fill the FSSAI application form A or B based on the business turnover. Currently, there three types of FSSAI license which is accessible to the applicant, which are as follows:
- FORM A– (for basic FSSAI registration)- It is available to those entities whose yearly revenue is below 12 Lakhs.
- FORM B– (For State FSSAI license)- It is available to those entities whose yearly turnover lies between 12 to Rs.20 crore.
- FORM B– (For central FSSAI license) – It is available for those entities whose annual turnover is above Rs 20 crore.
Submission of the Requested Documents
One has to furnish the requested documents to the authority via email to initiates the application processing. We have listed down the detail of the documents that you would require to serve this purpose.
- Duly completed and signed Form A or B.
- 2 photographs of the applicant.
- PAN card of the applicant (Proprietor/Partner/Director)
- Proof of the ownership of the biz place such property papers-in case if the premise is owned, or electricity bill in case of the rented property.
- Partnership Deed
- Articles of Association (AOA) or Incorporation certificate in case of a company.
- The exhaustive details of proposed food items that a unit willing to process at the biz place.
- Authority letter
- Declaration form
- Form IX
Issuance of License Number
Upon approval of the application, the authority would grant the 14- digit FSSAI License number to the applicant for carrying the business of homemade food selling. The whole process would take around ten days. After regular follow-ups with the concerned department, you can expect the authority to deliver the license within 4-5 days. The applicant would receive the soft copy of the FSSAI license in the registered email id.
Benefits of FSAAI License
In the end we would like to add that the FSSAI license generally serves a validity period of 1 to 5 years. The applicants are required to opt for the license renewal a month before the expiration, as it is mandatory as per the FSSAI norms. Also, do not forget to consider the penalty provisions as FSSAI is quite strict when it comes to non-conformity with the compliances. Navigate to CorpBiz expert to gain precise and detail information about the license.
Read our article: NDMC Has No Right to Prompt FOBs to Raise Additional License: FSSAI