FSSAI Food License

License required for running a Food Delivery App

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.

Online Food Delivery Business in India

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.

What to ensure before you create an online Food Delivery App?

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.

• Conduct research to understand your target audience;
• Gain insights as to what your ideal market would be and what type of audience you want to reach, and what are their likes and dislikes;
• Test the products of your competitors to gauge what features they are missing so that you can add those to your final product;
• Identify the gaps in the system and create a plan that bridges that gaps and provides you with a unique selling point;
• Prepare a menu with all these things in mind which will help you in meeting the demands of your customers;
• Ensure the availability of raw materials and cooking expertise while creating a menu so that you don’t overwhelm yourself; and
• When you have prepared your meal plan, prepare the pricing plan that is comparable to your competitors and provides you with a good margin.

Features of an online Food delivery app

Some of the basic features that a food delivery application must have are as follows:

• A sign up page that allows for registration of users by themselves;
• A profile page that shows all the essential details regarding the users;
• An option to search food that allows users to search the food items and restaurants within the app;
• A locator page that shows the address as well as the location of the listed restaurants;
• Real time tracking that allows the users to track the exact location of their delivery partner;
• For a quick placement of orders, a feature called the Easy Order Placement should be included;
• In order to ensure that the app opens fast, there should be a minimum load time;
• Forecast the needs of the user by remembering past orders and displaying frequently visited restaurants on the top of page;
• A simple payment portal; that executes transactions in no time and securely;
• Finally, the app should be a user friendly app that is easy to operate and features simple navigation for exploring the app.

License/permits required for running a Food Delivery App

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.

• E-commerce agreement

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.

• Health/Trade License

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.

• Business Registration

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.

• Signage License

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.

• Tax registration

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.

• FSSAI License

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.

• Shop and Establishment License

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.

Conclusion

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