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License Requirement for a Homemade Food Business

Ashish M. Shaji

| Updated: Jan 29, 2021 | Category: FSSAI Food License

License for Homemade Food Business

If you have any liking for cooking, then consider starting a homemade food selling business. You may sell your food through food aggregating apps such as Zomato or a swiggy. However, do not forget to get the License before you commence the homemade food business. In this article, we will provide you with every piece of information on the license requirement for this business.

Homemade Food Business: Introduction

The Indian government gave its permission to join all the laws relating to food and establish the Food Safety and Standards Authority of India[1]. FSSAI makes standard based on science for the food items and regulates the manufacturing, storage, distribution, sale, and import to ensure safe food for human consumption. FSSAI license is crucial for starting any food related business.

When commencing a business of homemade food, make sure you get the license and certification because selling food items from your home is treated on equal levels to selling food in a restaurant.

Moreover, it’s very important that you follow the rules and regulations of the health department; therefore, before commencing your business, contact the local health department for information on regulations, certifications, licenses, and insurance. The local health department inspects the area, which will be used as a kitchen for preparing homemade food.

What are the essential food standards codes that you must comply with for homemade food business?

Homemade businesses are required to comply with the following parts of food standards codes:

  • Standard 3.2.2- Food Safety Practices and General Requirements;
  • Standard 3.2.3- Food Premises and Equipment;
  • Part 1.2- Labeling and other Information requirements.

The food safety officers are required to inspect the home businesses in order to check if these requirements are being met.

Licenses required for starting a homemade food business

The licenses/permissions needed for starting a homemade food selling business are as follows (it may be noted that it can differ from state to state):

Licenses required for starting a homemade food business
  • FSSAI License for homemade food business

FSSAI is the ultimate food authority that grants FSSAI Registration/License. This license is required for food business from home.

  • Health Trade License

This license allows the business to trade in any items or services that directly impact public health. It can be obtained from the municipal corporation or the health department of the state.

  • Shops and Establishment

A food business is required to enroll under this Act of the State where it has established its business.

  • Liquor License

In case the business mulls serving liquor within its premises, it has to apply for a liquor license. It can be obtained from the Local Excise Commissioner. They provide this to those wishing to serve liquor.

  • Eating House License

It is required for businesses where any sort of food or drink is served to the public.

  • Environmental Clearance

This may be taken from the State or from City Pollution Board. Environmental clearance is provided once the authority estimates the impact of the business on the environment.

  • Signage License

This allows a food business to promote itself by inserting any words, signs, or pictures. You may apply to the local municipal body for this.

  • NOC from Society

You would also be required to get Society’s NOC (No-Objection Certificate).

Procedure for registration under food (FSSAI) license for Homemade Food Business

The following steps are to be followed to obtain the license for Homemade Food Selling Business:

Procedure for registration under food (FSSAI) license for Homemade Food Business
  • Fill Application

The first step involves filling an application form. You may be required to fill either application Form A or B depending upon your business turnover. Currently there are three types of FSSAI license- FSSAI Basic Registration, FSSAI State License, and FSSAI Central license.

Fill Form-A if your business turnover is below 12 lakh rupees per annum and fill Form B in case your business turnover is between 12 lakh to 20 crore rupees or above 20 crore rupees.

  • Documents Submission

After you fill the form, you are required to email the required documents. The following documents are required for Homemade food selling:

  1. 2 passport sized photos;
  2. PAN card of FBO owner/proprietor/partner/director;
  3. Possession proof of the premises;
  4. Utility bills or rent agreement if the property is on rent;
  5. Partnership Deed;
  6. Declaration form;
  7. Authority letter;
  8. Form IX;
  9. COI or AOA in case of a company;
  10. List of food items
  • Issuance of FSSAI License

You will receive a mail of the license which shall act as a food license online after regular follow ups with the food safety department. It may take 2-4 days for the license and certificate to be delivered.

Read our article:FSSAI Registration of Petty Food Businesses

Validity period of Food license for Homemade Food Business

It may be noted that an FSSAI license is valid for a period from 1 to 5 years. As per FSSAI rules, a homemade food selling operator can apply for the renewal of the same in 30 days before its expiry. Any such application filed after the expiry, a late fee of 100 rupees shall be levied for each day of delay. Therefore check if your license is valid and renew it if required well before time.

Things to know for online Homemade Food selling Business

Keep the following points in mind:

  • Before you commence this business, make a market analysis to know what to make and how to sell. Look how you can make a mark in this business.
  • Come up with a brand conscious packaging and labelling system that differentiates you from your competitors.
  • If you seek to expand your business, obtain GST registration as you may cross the taxation threshold. 
  • For once, contact your local health department to be informed about legal requirements.
  • Decide if you wish to join in with other e-commerce food platforms for delivering your food items. If yes, register on their portal.
  • Create a readymade food website. List your menu along with its prices.
  • Be creative when it comes to marketing and branding. Try out different methods in this regard.
  •  Come up with marketing strategies that can boost your brand and business organically.

Conclusion

You must keep in mind the above mentioned points in order to kick start your homemade food business. Don’t forget to apply for all essential licenses/certifications. In case of any query, consult a professional who will guide you through the process and requirements of this business.

Read our article:How to Setup Home-Based Bakery Business in India

Ashish M. Shaji

Ashish M. Shaji has done his graduation in law (BA. LLB) from CCS University. He has keen interests in doing extensive research and writing on legal subjects especially on criminal and corporate law. He is a creative thinker and has a great interest in exploring legal subjects.

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