The business growth in India has seen a huge rise. The food sector businesses also have emerged profoundly with higher profit sector. The food business is quite easy to start but they are required to be aware of the lawful licensing condition. In order to start a food business, the individual must keep in mind a few points, which may include;
Finalizing the Type of Food Business
The initial step is to decide the kind of business in the food sector. Once you are ready with the resources and plan of implementation, you would have to look around the lawful license or NOC needed to avoid any legal complications.
Registration of the Business Entity
The next vital step is to register a business entity. There are many options available towards the Businessperson like registration as:
- Limited Liability Partnership,
- Private Limited Company or
- One Person Company.
Through registering the business under the applicable law one could avoid legal penalties.
Make it official: When an individual has decided on the structure you would require registering the business. The registration procedure might vary depending on the type of business.
The steps to register as a Private Limited Company includes;
- Applying for Digital Signature Certificate
- Applying for Director Identification Number
- Checking the corporation name availability
- Applying for PAN (Permanent Account Number) and TAN (Tax deduction Account Number)
- Getting the Incorporation Certificate from RoC
- Opening a current bank account
Obtaining government registrations and other licenses: Every mandatory government registrations, as well as licenses, must run a registered business which is depending on the place of business, sector or industry, business type, number of staffs, etc. However, every incorporated business should apply for and get PAN and TAN. The former is compulsory for the opening of bank accounts as well as filing income tax returns and TDS returns, whereas the latter is requisite by all corporations engaged in deducting or collecting tax.
- Shop & Establishment Act: This is a license needed for shops, eateries, restaurants, places of interest, theatres, etc. The Act controls the working conditions of staffs with respect to the number of working hours, holidays, payment of salaries, health and safety measures, etc.
- Import Export Code: It is known as IEC, which is a 10-digit code that is required by importers and exporters to clear customs as well as shipment and to transfer money towards foreign banks. IEC could be secured with a minimum number of documents easily.
- GST Registration: GST is compulsory for all corporations whose turnover is above 40 lakhs and Rs 20 lakhs for States under the “Special Category”. Also, GST registration is compulsory for businesses who are involved in the intrastate supply of products regardless of turnover.
- Maintaining accounts and compliance: Also a newly registered business must get an Accounting and compliance system in place. Maintaining the books and financial records assist the business to study the cash flow, display the fiscal health to stakeholders, plan budgets; take key decisions, report profits and more.
- Protect the brand: Protecting the brand is one of the main assets of a business, whether it is small, mid-sized or large. Protecting intellectual property comprises trademark, copyright, patent, industrial designs, software, inventions, etc, is vital.
- Raising funds: To source finances for your new business, few options available are crowdfunding, bootstrapping or self-funding, Angel investment, as well as venture capital, business incubators, bank loans, government schemes, etc.