With the technological advancements and digitalization of India, everything is becoming online. The easy availability of things online and convenience in ordering and payment recurring together has attracted youth a lot. Getting whatever you need at your doorstep, be it food, clothes, electronic items, furniture etc., has positively influenced the time-effectiveness of people.
Want to start an online food delivery business of your known? Don’t give it a second thought. It is a very profitable business opportunity undeniably but it needs to comply with specific requirements to kickstart your food delivery business in India: the need for a license. You are required to obtain certain licenses for the smooth running of the business without any legal hindrances.
Learn about all the legal requirements for starting your online food delivery business in India in this article.
Do I Require a License to Run a Food Delivery Business in India?
Yes, you need to acquire certain licenses for starting and running any food delivery business in India. There is always a requirement for licenses when you plan to start any kind of business in India. Precisely, there is a need for every business to fulfil some legal requirements as directed by the Government of India compulsorily. In some cases, the list of permits and licenses required for your food delivery business depends upon the area your food business is in.
What are Licenses Required for Running a Food Delivery Business in India?
The expanded list of the necessary licenses which are required essentially for running a food delivery business in India is catalogued as follows:
Shops and Establishments Act License
The main aim of the Act is to organize payments relating to wages, terms of employment, work conditions, long hours of work, bonuses of extra work, maternity leave and advantages etc., of individuals involved in Shops and Businesses. One must possess the Shops and Establishments Act license regardless of whether your food business is online or offline.
The Shops and Establishment Act license is state-specific and is issued by the Department of Labour of that particular state.
The FSSAI(Food Safety and Standards Authority of India) is a legal authority that issues food licenses to all food business operators in India. This license ensures the food safety and security of the laws relating to food and determines science-based standards for food. Each food delivery business should acquire the FSSAI License to justify food safety from their respective food business.
FSSAI License falls under State License or Registration, so it is issued by the State Authorities.
Health Trade License
The Health Trade License is a certificate that allows the food business operators dealing in goods and services to operate, which directly affects the health of the customers. This is the prime reason for the compulsory issuance of a Health Trade License for every business operator in India.
The Municipal Corporation issues the Health Trade license which must be seized before the commencement of the food business.
Electronic Commerce is coordination between different organizations with a channel of new communication technology. In the case of the food delivery business, it is a contractual relationship between the entities involved in the food delivery business as a whole. The entities which generally comprise a food delivery business are the food business owner, the restaurant or food providers and the delivery people.
The e-commerce agreement must contain the following essentials:
- Term of Agreement
- Details of product and services
- Customer Information
- Customer Payment
- Trademark Registration
One can obtain Trademark Registration under the Trademarks Act of 1999. The Trade Marks Registry, under the Trade Marks Act of 1990, is the sole facilitator in matters relating to trademarks in the country.
A Trademark is a service mark that distinguishes your logo, products, services, or your specialities which discerns you from other food businesses in the market. If yours is an e-commerce business, you need to protect your website information, logo and products & services information from any kind of access from unfair means, unauthorized manipulation or any malpractices.
As per Section 2(44) of CGST Act, 2017, every business which falls undersupplying of goods and services online or offline is compelled to get the GST registration online. It is a process by which a taxpayer registers himself under GST guidelines.
For other businesses except those dealing with goods and services, there is a threshold limit of Rs. 40lakh above, and the business will have to take the GST registration. However, for e-commerce businesses, there is no provision for a threshold limit, and mandatorily have to obtain GST registration.
Business Registration is one of the fundamental and important tasks regarding doing a secure and profitable business in any field. This registration is to ensure the safety of your business assets all at once.
In any case of difficulty, you can contact experienced consultants from Lawgical India for every small assistance.
Application Process for Acquiring Food License
Filling Application Form
The application Form needs to be filled as directed under Food Safety and Standards (Licensing and Registration of Food Businesses). Some documents need to be attached along with the application form and sent to the Licensing authority according to the category of your food business.
The documents are:
- A self-attested declaration as stated in Annexure-1.
- Photocopies of the documents as stated in Annexure-2
- Fees are mentioned in Schedule-3 according to the type of food business.
If any additional information is required to be filled out or any changes need to be made in the application form, then the Licensing Authority will inform you within 15 days of the application. A period of 30 days was given to do the required changes, and if one crosses the time limit, there are chances of form cancellation.
Application ID number
After the successful completion and submission of the application form, the Licensing Authority issues an application ID number which is a reference for any kind of future coordination with the Authorities. The license is issued after 60 days of the receipt of the Application Id number.
Inspection of the Business Process
After the issuance of the Application ID number, your food business premises are visited for auditing and inspection. If any changes are required to be done, then the authority will inform you and a 30 days limit is given for the completion. Successively, the Authority decides whether to grant the License or reject it.
Issuance of License
The license is issued in format C under schedule 2 of FSSAI regulations. The original copy of the license needs to be displayed on the premises of your food business in the bulletin.
How Lawgical India Can Help?
Lawgical India is a foremost business solution-providing consultant company that can help you and your food delivery business in obtaining a food license with utmost ease and proficiency. We provide you with expert guidance and assistance in any of your difficulties regarding food licensing.
Come on board to avail our efficient services, and we wish for your positive feedback.