Starting a Healthy Snacks Business in India

Narendra Kumar

16 Jan, 2021

Snacks Business in India

Are you planning to set up a healthy snacks business in India? If yes, you need to know about various rules and regulations that need to be followed. The reason for complying with these rules and regulations is to ensure the health and safety of the consumers as any negligence in manufacturing food can prove to be fatal for the consumer. Thus, it is mandatory for food businesses to ensure compliance with these regulations.

When setting up a healthy snacks business in the country, you have to be aware of the extensive legal formalities that you have to fulfil so as to safeguard yourself from future troubles. Here, we bring you accurate information about legal compliances to be ensured when setting up a food business.

Licenses and Registrations Required for a Healthy Snacks Business

Since food can have a direct impact on one’s health, the sector needs a lot of permits and licenses before a business is allowed to be established and start operating. If you are planning to enter this field, you will be referred to as FBO or Food Business Operator. On the basis of the business, the food business operator will have to seek the following licenses and permits.

Food Safety and Standards Authority of India License

The most important license every food business operator is required to obtain the Food Safety and Standards Authority of India or FSSAI. The major objective of this agency is to regulate food business in the country and ensure the best standards of consumer safety. Three types of FSSAI Licenses are available.

Central License– This license is meant for head offices that operate in more than one states with other businesses and importers. Moreover, if your annual turnover is more than Rs. 20 Crores, you need to apply for this license. This license can also be obtained by 100 per cent EOUs, importers, and FBOs who deal with non-standardized products.

State License– If your annual turnover is between Rs. 12 Lakhs and Rs. 20 Crores, you need to apply for this license.

Registration– If your annual turnover is not more than Rs. 12 Lakhs, you need registration.

Also, Read: Procedure for Chicken/Mutton Shop License in Delhi and UP.

Obtaining Health Trade License

An FBO also needs to visit the local municipality office and apply for this license. It is significant to note that municipality laws differ from state to state. For instance, all eating joints in the capital city need to apply for a health trade license. You can also apply for the same at a local municipality office. It is easy and hassle-free to make online applications. This way the process becomes easier and more straightforward.

Seeking NOC from the Fire Department

Every state has a Fire Services Act and Building Bye-Laws, and when setting up a food business, it is mandatory to seek a No Objection Certificate or a NOC from the Chief Fire Officer. If Fire Services Act notifies your building, you need to fill up a questionnaire and submit documents –

• Duly filled questionnaire
• Two sets of Building Plans with information as mentioned in the bye-laws
• Building Model
• Architect certified Checklist

GST or Goods and Services Tax

If you are planning to take your business across various states and if your business exceeds GST threshold, you will have to ensure GST Compliance of your business.

Shop and Establishment Act

Another Act that you may have to comply with is the Shop and Establishment Act^[1]. As per this act, the terms and conditions of employment are duly regulated in commercial establishments. This Act under the Ministry of Labor not only regulates working hours but opening and closing hours, rest intervals, overtime pay, paid leaves, public holidays, maternity leaves and more. The following information needs to be shared with the Area Inspector along with an application.

Employer’s and Manager’s Name

Establishment address

Establishment Name

Number of employees, etc.

It is significant to note that within 30 days of commencing work, the application needs to be submitted along with necessary documents. Once the application and documents have been verified by the Inspector, a Certificate will be issued. The validity of this Certificate is five years, and it needs to be renewed after five years are completed.

Compliance with rules and regulations is mandatory if you wish to set up a healthy snacks business in India. Seek expert help and guidance regarding compliance to ensure smooth operations