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Ordering food from Food delivery app have become the new normal. Gone are those days when we used to go out and eat but now you can eat delicious food of your choice by ordering it through delivery apps. The convenience they provide attracts lot of people to go for this option. In this article, we shall look at the license/permits required for a food delivery application.
Table of Contents
As per studies, the online food delivery business has grown to four times more than the physical stores. This could be attributed to the fact that people prefer to eat from the comfort of their homes therefore, food delivery applications have been widely accepted. Apps such as Swiggy[1], Zomato, etc., have grown tremendously in the last few years.
In a few years time, these apps have spread all over the country and with increase in internet and smartphone access, these apps are gonna grow even more. The scope of online food delivery business is more than just big in India.
With the Covid-19 pandemic spreading its havoc across the country, people were reluctant to go out and eat because of the social distancing measures, etc. Therefore they used this delivery application to order their food online and consume the same at the comfort of homes without going out.
So when you have decided to go ahead with this delivery application, there are certain things that you should be informed about concerning the creation of the same.
Some of the basic features that a food delivery application must have are as follows:
You are required to obtain certain licenses and permits to run any type of food business in India. The list of permits may vary as per your location as different states and municipalities have different laws.
In this segment, we shall look at some of the significant licenses/permits needed to operate a Food Delivery application in India.
Draft and sign d E-commerce agreements with your vendors and suppliers to define your relationship and establish it. It would make your partnership legal and also assist in removing any sort of ambiguity.
A majority of states require from you to get Trade License from the Municipal Corporation if you make the food yourself. It may take some time to obtain this license. It is valid for a year or so and serves as an assurance that the products are safe and hygienic to consume.
Incorporate your business to protect your assets when running this food business. You may opt for registration as a Sole proprietorship, LLP, or Partnership Firm as per your needs.
If you wish to promote your business through advertisements, signs, logos, etc., then you should get a signage license. This license gives you permission to advertise or to publicize your venture through external methods like signs and boards.
Register for tax payments as per your income and the products you sell. You need to obtain a GST certificate to make IT payments for your business. You may consider registering with MSME Udyam portal to receive different government mandated benefits.
This is the most essential License required by every food business operator in India. You can opt for Basic FSSAI Registration, FSSAI State or Central License based on your annual turnover. It ensures that the products sold are hygienic and safe for human consumption.
This may be required for your state. It is issued by the Department of Labour and takes about 30 odd days, and is state specific.
Apart from the above mentioned licenses/permits, you may also require some other things like trademark registration, Environmental Clearance Certificate etc. for your Food Delivery App. For more information, you are advised to consult a professional who can guide you through the entire process on legal terms.
Read our article:License Requirement for a Homemade Food Business
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 corporate law. He is a creative thinker and has a great interest in exploring legal subjects.
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