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Legal formalities for any food industry start up

Hey all, can anybody suggest me what are all legal formalities/procedures i need to take care before starting up any food related business. Do i need to register my company for the same? I am into online food delivery in Gurgaon region.

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  1. Hi Mukat,
    You will need following permissions/licences:

    1) Shop & Establishment licence,
    2) If you are going to use gas cylinder then you will need Fire licence from Fire brigades department,
    3) Most important you will need a licence from FDA or licence from any state authority in Haryana that provides licence for food safety.
    4) You can start with registering as Sole proprietorship or partnership firm, it would hardly cost you 1k-2k.
    5) Once you cross the revenue of 5 lacs, you would require to register for sales tax number and Vat tin no., till then happy selling!

    I’d suggest to contact Rahul Dev for accurate tax and licence policies prevailing in Haryana.

    Regards,
    Aman Jha
    Business Consultant,
    9892621090

  2. Dear Mukat,

    In case you only facilitate online food delivery like Justeat. ; Foodpanda or Tastykhana than to my knowledge you need not require to take below license to run your company as you are not preparing food but facilitating home delivery of food prepared by “others (read restaurant)”. In this case “OTHERS” need to obtain the requisite licenses.

    However, in case you yourself are engaged in preparing food from raw material and then delivering online, below are the additional licenses required over and above what AMAN has shared above. Please note that this is not an exhaustive list though and you need to check the criteria of such licenses based on “YOUR SPECIFIC BUSINESS”   

    Nature of the License

     

    Issuing Authority

    Mandatory / Optional

    Food Safety License

    FSSAI ( Last date extended to 4th Aug, 2014)

    MANDATORY

    Health / Trade License

    Municipal Corporation / Health Department of the concerned State 

    MANDATORY

    Eating House License

    Police Commissioner – Licensing

    MANDATORY

    NOC from Fire Department

    Fire Department of the concerned state

    MANDATORY

    Signage License

    Municipal Committee / 
    Corporation of the City

    MANDATORY

    Environmental Clearance

    Concerned authority in the state. For Delhi it is DPCC ( Remeber the now famous Hauz Khas Village Restaurant cases)

    MANDATORY

    Shop and Establishment Act

    As prescribed in the Act and
    as applicable to the state

    MANDATORY

    Playing of Music in  restaurants – License

    Performance
    Limited / Indian Performing 
    Right Society

    MANDATORY when recorded /
    live music of the two copyright
    holders is played in the
    restaurant.

    Liquor License L-4(L-17 as 
    per new Excise Rule)

    Excise Commissioner

    MANDATORY for service of Liquor in the Restaurant otherwise not

     

    Approval / Re-Approval
    of Restaurants

    Department of Tourism of
    Government of India in the
    State concerned / Delhi
    Government

    MANDATORY – Only for
    obtaining L –4 License

    Lift License

    Concerned authority – Electrical
    Inspector, Office of the Labour
    Commissioner 

    If lift is to be installed

     

    Insurance required to be taken.

    • Public Liability
    • Product Liability
    • Fire Policy
    • Building & Asset

    There are other insurance
    policies also which are not
    mandatory but useful

    Any insurance company Consult your insurance company

     

    Nominations under PFA Act
    1954 Section 17 (2) and Rule
    12 B of the Rules 1955

    Director Prevention of Food
    Adulteration of the State

    MANDATORY – To be applied
    in the prescribed form.

     

     

     

     

    Hope this is helpful to you at this stage. You would also come to know of many others license as you start your business e.g you might as well come under the previews of Weights & Measure Act, Labour Laws or under Regional Health Departments etc.

    Few links that might be of help to you.

    1) Food Safety & Standards Authority of India (FSSAI)

    2)FHRAI

    3)The Hotel & Restaurant Manufactures Association of India

    4) Hoteliers Talk

    …….& & do share your venture BRAND name !

    All the very best of luck on the never ending Roller Coaster ride of a FOODpreneur.

  3. thnks Rajeev sir for this guidance….hope u might remember me we met at Gurgaon ppen house while leaving……i was talking about entering into food startup….would like to know some more things, pl let me know ur email address if possible….

  4. did you miss aman’s comment mukat?!

  5. Yes Mukat I remember you.

    You can reach me at : rajeev@zephyr.in

    thks & all the very best

  6. No asha mam, actually rajeev sir’s reply was covering aman’s points as well. but i have gone thru both replies ….will contact rajeev sir overall clarifications…

  7. May I know which kind of Certificate/Document required to start E commerce website in retail industry like Bigbasket,Local Banya etc. .?

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