Laws pertaining to food safety have tightened since the FSS Act of 2006. Therefore, you must fulfill all legalities of starting a catering business when you establish one, especially if it is a food business. If your company is found operating without complying with the legal requirements to open a catering business, you could face severe fines or penalties that, believe me, are so severe as to quickly bring your company to its knees. Thus, when starting a firm, it is advised to abide by all laws and guidelines.
What are the Legalities of Starting a Catering Business in India?
Some of the most important legalities of starting a catering business are discussed below in detail:
Get FSSAI License Registration
India has exceptionally severe food safety standards because the country’s general population’s health is closely linked to food. One of the main legalities of starting a catering business is this FSSAI License registration, hence before starting your catering food business in India you must obtain this license from the competent authorities.
Types of FSSAI Licensing
There are three primary categories of food firms in the food sector. Those who operate small food businesses, such as food stands, thela balas, pani puri thales, etc., come first. There will be general food registration applicable to these types of companies.
Mid-sized food businesses make up the second category; they have a relatively low turnover, but it will still be up to or equal to twelve lakhs. This second category of food enterprises will be subject to a State FSSAI License application.
Large establishments with an annual revenue of more than twelve lakhs, such as hotels, restaurants, canteens, etc., fall into the third category of food enterprises. Such food industry categories will be subject to the Central FSSAI License. One of the legalities of starting a catering business is to obtain these licenses in accordance with the businesses.
Obtain Trade License
Now the next thing after FSSAI is to obtain the trade license. It is mandatory in some places and not mandatory in some places, hence this needs to be figured out first whether it is applicable on your business or not. If not then you can skip it but if yes then you need to obtain this license called trade license from the local municipal authorities.
ISO Certification
As it is mandatory according to the food safety laws to maintain or distribute the quality food in the market, hence you should obtain ISO Certification for your catering business. This is nothing but a certification that shows that your business goods and services are up to a certain quality. It will retain the customers’ trust which will lead to the success of your business.
Get GST Registration
GST Registration is also among the legalities of starting a catering business in India, hence you must obtain it if your business falls under the goods and services tax threshold limit. It is not mandatory for all businesses. It is applicable only to those businesses which falls under the goods and services tax threshold limit of the GST.
Obtain MSME Registration
Getting this MSME Registration will avail many benefits to your business, hence you meet register your business under the category of the MSME. This registration of MSME is also known as the Udyam Registration, so don’t be confused. It is a one time registration. Also it’s very easy to obtain this license. It can be obtained by simply filling or presenting an application for the same online. You don’t need to go anywhere in order to obtain this registration. Also it will be done in one day only.
Process to Start a Catering Business in India
In order to start a catering business by following all the legalities of starting a catering business, follow the steps mentioned below:
Basic Things
- Performing market research is the first and essential step in starting a catering business. Understanding the extent of your business and those around you will be beneficial for you.
- Every sort of business needs to comprehend its audience, so the subsequent step after accomplishing the first one is to completely comprehend the market that you are targeting.
- Completing the first two phases of establishing a catering enterprise, you are now in the third step, which requires you to plan your business’s future by creating a solid business plan and an investment strategy.
- The success of your business is greatly affected by the location that you select, therefore pick carefully.
Legal Formalities
- You need to choose a business entity for the organization after accomplishing all of the previous procedures. One-person companies, Private or Public Limited Companies, Limited Liability Partnership Firm Registration, Partnership Firm Registration, Sole Proprietorship Firm Registration, and furthermore are among the options that are available.
- Once the sort of entity has been identified, choose an appealing name for the organization that is not right now in use.
- Now , you need to register your entity with the help of an expert
- Since they are related to the guidelines of establishing a catering service, you must simultaneously secure all licenses, registrations, and the authorizations from the government.
- After completing all the above steps now you are ready to launch your business.
Benefits of Legalities of Starting a Catering Business
Some of the key advantages or benefits of legalities of starting a catering food business are given below:
- Fulfill the legal compliances
- Lawful business is established
- Business can be run without fear
- Increases the chances of success of the business
- Reliability of the business increased in the market
- Credible business is established
- Customer attracts towards such businesses
- Many benefits of the government schemes can be obtain
- Loans can be easily availed by the legally established businesses
- Investors attracts towards such businesses
Conclusion
One of the best occupations in the food sector is catering, and it will only grow further in the years to come. Establishing this firm after complying to all the legalities of starting a catering business is one thing you need to be careful about. In the near future, you run the risk of experiencing legal repercussions from the government if you launch these kinds of food business organizations without adhering to the legal process. You should start a catering business by adhering to all legal requirements for business establishment rather than establishing an illegal enterprise.
