Permission Required for Chocolate Business License

Minakshi Bindhani

25 Jul, 2023

Introduction

Everyone likes chocolate, one of the country’s most widely consumed foods. All across the world, a wide variety of chocolates and other related items are offered. The fact that it has a distinctive taste makes it a popular gift item. The permission required for a Chocolate business License in India is discussed in this article.

The products are made from cocoa and other cocoa-related materials, with the addition of sweeteners or sugars, milk products, and other authorized food ingredients and tastes as the demand for chocolate business licenses grows at an accelerated rate. Since chocolate is a food product, safety precautions must be taken.

Before the clearance of chocolate in the market, it is imperative to keep a check on the nutritional contents as children normally consume it. The product must be tested and checked as per food safety standards.

What Permission And License Are Required To Be Obtained For Doing Chocolate Business?

• Company Registration: In India government of India regulates authority for company registration. Chocolate Business License can be set up in India either through a sole proprietorship or Limited Liability Partnership (LLP) registration and by opening a private limited company to get its legal existence and access various sources of funding, as compared to the private limited company, LLP and sole proprietorship has minimal compliances and other related formalities.
• FSSAI License: FSSAI license is one of the most important licenses which are regulated by the Food Safety and Standards Authority of India (FSSAI) under the FSS (Licensing & Registration of Food Business) Regulations 2011. Every food business operator(FBO) who deals in food products is required to get a license through FSSAI. And it depends upon the location and turnover of the company.
• If the annual turnover is up to INR. 12 lakhs, then Basic Registration required to be done;
• If the annual turnover is more than INR. 12 lakhs but up to INR. 20 crores, then a State license is required to be obtained;
• If the annual turnover is more than INR.20 crores, then a Central license is required to be obtained.
• This license is a unique 14-digit license number given to the manufacturer and traders of the food business, and it should be printed on food packages. It ensures the quality of the product and is safe for ingestion by safety measures of food as per the Food Safety and Standards Authority of India (FSSAI)¹. Without a Food License will be treated as a legal offence, which would invite penalties under FSS Act, 2006.
• Health trade License: It is another important license that the food business operator must have. A health trade license is issued by a Municipal corporation or Department of health of the concerned State; it certifies that FBOs follow all the hygiene and safety norms. The license is issued within 60 days by submission of all the eligible documents. If a health trade license is not taken by the then Municipal Corporation, it has the power to cancel the permit.
• Labelling of vegetable fats: The guidelines which FSSAI issues related to labelling are that if the amount of vegetable fat is used in the chocolate, it must specify on the wrapper of the food product. If it contains other than cocoa butter, then it must be carried on the label in bold.

Contains Vegetable Fat In Addition To Cocoa Butter

• Trademark Registration: To protect your brand name of chocolates, you must take trademark registration as it protects from copy, and no one can take advantage of your brand name except you. http://ipindia.nic.in/. Trademark validity is for ten years, and it is essential for running a chocolate business successful
• GST Number: whenever you are providing taxable services to your customers, you have to apply for GST Registration and open a Current account with the bank.
• Import Export Code: If you plan to import or export chocolate and enhance the business globally, you must obtain an IEC code from the concerned authority.
• Trade license from local Authority: For doing a Chocolate Business License doing the business, you have to take the NOC Local Authority of your State.

Conclusion

Obtaining a permission or business license for a chocolate business is essential to ensure compliance with legal regulations and establish a legitimate operation. This license serves as a necessary safeguard, ensuring that the business meets health, safety, and quality standards while adhering to local, state, and federal laws. Additionally, acquiring the necessary permits demonstrates a commitment to ethical practices and consumer protection, instilling trust and credibility among potential customers and stakeholders. By obtaining the required permission, entrepreneurs can confidently pursue their chocolate business ventures, knowing that they are operating within the bounds of the law and contributing positively to the industry.

Frequently Asked Questions(FAQs)

Read our article:Food Safety and Standards Rules in India

1. https://www.fssai.gov.in/