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Priyanka Bajpayee
| Updated: 21 May, 2022 | Category: Startup India Registration

Legalities to Start a Candy Business in India

Candy business in India

In India, people like to celebrate festivals by gifting sweets. Moreover, if we talk about today’s generation, they prefer candies as an alternative and start enjoying it at a pretty young age. Even the kids start by indulging in all sorts of sugar-boiled candies. Not surprisingly, the candy industry is one of the organized and well-developed sectors among other sectors in the country. In India, starting a candy business can be a great idea to cash in on India’s love for candy. However, establishing the foundation for a growing candy business isn’t as simple as it sounds. This blog will take you through the steps you need to follow when starting a candy business in India

Market Overview on Candy Business

Candy is the most popular type of confectionery globally, and there is undoubtedly something about this candy product that holds many mysterious qualities. Also, the increased demand for candies has resulted in a rising foray of companies into the sector. If we talk about India, India’s candy market is majorly dependent on imports of premium candies. In India, the Candy market is anticipated to grow at a CAGR[1] of over 9% from 2016 – to 2021, on account of increasing middle-class households, combined with increased working and young population. In India, the dominant segment in the candy market is sugar candy. The reason behind this dominance is the continuous launch of innovative products and high branding initiatives undertaken by leading market players.

Steps to start a candy business in India

If you are planning to start a candy business in India, then you are at the right place. If planned properly, the candy Business is a high profit and low capital start-up business. To start a candy business is an easy-to-go opportunity. Before starting a candy business in India, you must follow these steps before starting a candy business-

Step 1: Conduct Market Analysis

The first step to starting a Candy Business in India is to do the Market Analysis and find out the most excellent and most selling candies in your region. Once you know which candy segment is the highest selling candy in your area, you can easily make a layout and go ahead. However, it is unnecessary to go for a similar type of candies with a reasonable market requirement; we can think of an innovative new candy business. If you desire to make candies, it is advisable to avail of some candy-making courses and gets training from experts in their workshop. This will give you an idea of starting a candy business in India and how candies are prepared.

Step 2: Select the name of the Business

Before starting a business, it is essential to find a catchy name for your candy business so that you can stick out in your space. Naming your Business will forever play a crucial role in-

  • Representing the identity of the Business.
  • Type of customer preference your brand attracts.
  • Good impression on the customer

Step 3: Materials required for Candy Making Business

Before starting a candy business, you must have specific materials like candy thermometers and other kinds of candy-making molds. Also, it is advisable to approach local suppliers to get raw materials like candy flavors, sugar, etc. Also, the essential aspect is the packaging of your candy. Therefore, you must frequently plan how you can make an appealing packaging for your candy from time to time.

Step 4: Obtain Licenses required to start Candy Business in India

Candy Business is a food-based business model. So, before starting a candy business in India, a person must take the necessary Licenses. Below is the list of Licenses required to start a candy business in India.

Business Entity Registration

The first step before starting a business is registering it as a business entity. It could be as a-

  • A Sole proprietorship or
  • A Partnership or
  • A Limited liability partnership or
  • A Company.

Business entity registration helps in availing a few perks to the Business and must be selected carefully before registering the Business at the Registrar’s office.

FSSAI registration

As the Candy Business is a food-based Business Model, it is required to have an FSSAI registration. FSSAI Registration is meant to protect public health by regulating and supervising food safety. Therefore, FSSAI Registration is mandatory for the food business. The process for FSSAI Registration is entirely online and relatively easy to get once the documents are ready.

Shop Act or Trade License

Before starting a Candy Business in India, it is required to apply for a Shop Act License from the local municipal authority to run the Business.

MSME Registration

Most Candy Business is categorized as a small business. Hence, it is advisable to register under Udyog Aadhaar, registration and recognition for MSMEs.It helps in availing the benefits given to MSMEs by the government.

GST Registration

Every Business, including Candy business, is associated with taxes at someday, and to keep track, the Business should get a common GST number which stands for Goods and Service Tax.

Step 5: Procure Required Machinery for starting Candy Making Business

Starting a candy business from your home does not require machinery and equipment but investing more money and initiating it on a commercial scale than homemade candies requires well-equipped machinery. Therefore, it is always advisable to select the machines carefully and verify if they offer the installation or demo facility.

Step 6: Promote your Business

Before getting started with any business, it is imperative to promote it appropriately. If you are starting with less capital, you can approach the local supplier and ask them to allot your candies. Also, you can promote your business online through the Social Media platform. Also, you can promote your Business on the Internet using ads if you have enough capital.

Conclusion

Conclusively, we can say that the main reason every potential entrepreneur wants to start a chocolate-making business in India is the high demand for candies in India.

Further, it shall be pertinent to note that many licenses and permits are needed to start a candy business in India, undoubtedly an intricate and challenging task. So, reach out to Corpbiz; our experts will help you obtain various registrations like -Trademark Registration, GST Registration, FSSAI License, etc., in a free and easy way.

Priyanka Bajpayee

A Company Secretary together with PG in international Business, she has gained significant experience as legal content writer. She has keen interest in doing research and writing on legal and financial subject matters. She also holds work experience in legal compliances.

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