We are living in the era of businesses. Every now and then a new business is starting in India. This is because of the initiative of the Indian government to promote startup culture in India. In this competitive industry some businesses are very easy to start with less investment and less chances of losses. One such business is the business of providing food delivery services. In order to know more about the food delivery business, keep reading the current blog till its end.
What is a Food Delivery Service?
As the name itself suggests, this business is related to the delivery of food from one place to another. Basically through this business one can deliver food from various kinds of restaurants, cafes, hotels, etc to the one who ordered such food. This makes the work of the food providers easy, with the food providers this business also benefits the food consumers because they get food by simply one click. This is one of the reasons such kinds of businesses are very prevalent in the market.
Why Starting a Food Delivery Business is a Good Option?
Some of the key reasons due to which it has been said that this business is one of the best business choices are:
- High demand due to busy lifestyles.
- Low overhead costs without physical space.
- Easy scalability with multiple partnerships.
- Flexibility to adjust menus and prices.
- Integration of technology for efficiency.
- Diverse revenue streams beyond delivery fees.
- Constantly growing market opportunities.
- Low entry barriers for aspiring entrepreneurs.
- Ability to adapt to changing trends.
- Positive impact on local economies and communities.
Licences Required to start a Food Delivery Service in India
Different kinds of licences, permissions and registration applicable on such kind of businesses are given below:
GST Registration
If your firm exceeds the GST threshold limit, GST registration is required; otherwise, you do not need to register your business. This registration assures that the business pays taxes on a regular basis. Another thing to keep in mind is that if your business does not fall under the GST threshold limit but you still want to register so that you can collect GST from your clients, you can do so through voluntary GST registration.
Business Registration
There are various types of business or company registration given under the Indian laws. One can opt any of them for their business as per their business needs. Some of the key types of business registration includes the following:
- Private Limited Company
- Public Limited Company
- One Person Company
- Limited Liability Partnership Firm
- Partnership Firm
- Sole Proprietorship Firm
Health Trade License
Health Trade License as the name suggests relates to the health of people. All those businesses who have an impact on the health of people must obtain this Licence. Obtaining this proves that the food prepared is hygienic and clean. By this the customer and government gets an assurance that the food won’t damage anyone. The different Municipalities of different localities issue this Licence. Hence it can be said that it is a local licence which differs state to state.
FSSAI License
The full name of FSSAI is Food Safety and Standards Authority of India. This licence is required for all food establishments in India.To start a food business in India, enterprises must register with the FSSAI. They can conduct food business freely in the market once they have registered for an FSSAI licence. There are three kinds of Food Licences which includes:
- Local or general food licence
- State FSSAI Licence
- Central FSSAI License
Signage Licence
Only setting up a new business is not enough, businesses need to put in some extra effort to be known to the public. To make their service popular, they have to market their brand. This can be done by making posters, advertisements, images etc to do all these things, Signage License is required. To obtain this licence, you have to apply to the Municipal Corporation of your locality.
Register for Trademark
There are many kinds of food businesses in India. Hence to make your business different among them you must take trademark registration. This will aid in the growth and development of your business, as well as distinguishing it from other comparable businesses, resulting in the overall improvement of the business. This increases your business’s trustworthiness, dependability, and credibility.
Shop and Establishment Certification
Anyone planning to start a business in India must obtain a Shop and Establishment Certification.This certification is different for each state. As a result, whenever you wish to start an online food delivery service, you must receive this certification in accordance with the laws of the state in which you will do business. This is for the proof of the registered address of your business. In order to take this certification you will approximately take 25-30 working days.
Documents Needed to Start Food Delivery Service in India
There are some documents which have to be there in order to start a food delivery service in India.They are as follows :
- PAN or Permanent Account Number
- Identity proof like adhar card, pan card etc of applicant
- Residential proof of applicant
- Bank details of the applicant
- Certificate obtained during Incorporation of the business
- Food License
- If the place is rented, then no-objection certificate from the owner of the place
- GST registration
Precautions to be Taken Before Starting a Food Delivery Business
There are some things which must be kept in mind before starting a food delivery business in India. They are listed down below:
- Starting a Food Delivery services Business requires filling many forms and obtaining many licences.
- This requires a lot of attention and time.
- One simple mistake can result into a lot of problems for the business, therefore,this formality must be done with some legal assistance.
- The owners must first understand the position of the market and choices of the customers. Then according to this, they must set up the business.
- The quality and quantity of the food must be looked upon.
- Make sure that the news of your business is reaching far. This can be done by publishing advertisements in newspapers, television, making banners, posters etc.
Conclusion
Food Delivery business are rising day by day and one of the reasons for this is that people prefer ordering food online rather than going out these days. The only thing which customers expect is the quantity of the food and hygiene. Just like other businesses, starting food delivery services too have to go through some formalities.This includes registering and obtaining some licences, registration as well as permission which are discussed above.
FAQs
1. What are the key licences required to start a food business in India?
In order to start a food business in India one needs to obtain FSSAI or Food Registration, GST registration, Shop and Establishment registration etc.
2. Is a food licence required for Zomato and Swiggy?
Yes, both Zomatao as well as Swiggy need a Food License in order to deliver food in India under the FSS Act of 2006.
3. Which law governs the food industry in India?
Although there are many laws in India which are applicable in this Industry but among them FSS Act of 2006 is the most important one.
4. How Startupfino helps in setting up Food Businesses in India?
Such businesses need to obtain various licences, registration as well as permits from the different authors of the government. Startupfino helps the business while obtaining all of them.
5. Can startupfino helps in getting FSSAI License Registration?
Yes, stratupfino helps in getting a food licence which is also known as FSSAI License registration in India.
