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With the ever-evolving corporates, IT parks, hospitals, schools, colleges, and other businesses in India, Catering business is the one common thing to all. It serves as the backbone to all these sectors and provides ample employment opportunities in a country like India. However, don’t presume the business of catering means serving food to the guests in the big fat Indian wedding. Catering is a diverse business, for which there is a number of legal formalities and other aspects that one needs to fulfill. In this blog, we will guide you on how to start your own catering business from scratch and adhere to all the norms and regulations that government imposes.
In India, it is seen that people often talk about
business ideas, even so, when it comes to
executing those ideas they compromise upon the legal requirements of the
business. Same is the case with the catering
business. If you are a chef, good cook or a passionate food enthusiast, that
wants to enter into the business of catering, then you must decide the kind of
business entity you want to set up.
Either you can
set up a private limited
company or a limited liability partnership. Now the question arises is that
when you have so many options of business structures available in India then
why will zero in on to these two business entities?
If you set up
your business of catering as a private
limited company or a limited liability partnership, then these business
entities are transferrable and provide limited
liability to the owners of the business. And these are two of the core
advantages that cannot be leveraged through another
form of business entities.
If the annual
sales of your catering business lead to a turnover of less than Rs. 40 lakhs and the
capital requirement are lesser than Rs. 25 lakhs then you have an upper hand,
which helps you to be relieved from an audit.
If the turnover
exceeds Rs. 40 lakhs, then you need to set up a private limited company. This
is the case with almost all the businesses involved in the catering, as the
business of catering is on the boom.
In addition, private limited works as a tag of recognition, trustworthy, and attract investors in the market. Because at the end it comes down to the right funding at the right time for the unhindered growth of your business.
Once you decide the right type of business structure, you need to obtain various licenses from the Government Authorities. Some of them are as follows:
Entering into a food business without getting a food license!
Don’t even think about it.
Obtaining an FSSAI license for your catering business must be on the top of your list. Otherwise, the FSSAI will slap you down with such hefty charges and penalties that you will not even able to recover from the damages incurred from the imposition by the FSSAI authority. Forget about starting again from scratch.
But don’t you
get all bog down; we are not here to demotivate you. These are just preventive measures to run your food business
without being caught up in the legal battles.
FSSAI is basically a Food Safety and Standards Authority of India that grants a Food License to all the food operators in India. FSSAI authority let the food operators carry on the activities related to the Packaging, manufacturing, storage, processing, distribution of food, transportation, import & export of food products and services, catering services, the sale of food or food ingredients.
license is mandatory for all the businesses mentioned above.
To obtain an FSSAI License in India for your food
business, you need to provide the documents of incorporation of the business.
Along with this you just need to submit the documents related to the address
proof, identity proof as per the format of the Application.
Now you have a
business entity and food license to start your food business. But who is going
to take care of the other accounts such as tax registration?
Do you know, you need a GST registration as well?
business in India requires a certificate of GST registration as per the
turnover and the state in which you decide to run your business.
You must get a
certificate of GST registration if the
annual turnover of your business exceeds Rs 40 lakhs (Rs. 20 lakhs in northeastern states).
either visit the web portal of GST registration or contact any reliable service
provider to get the GST
registration. For this, you just need
to provide a few basic documents and you
will have your GST certificate within 7 working days.
start your catering business and have established your name in the market, then
how do you protect it from not being taken away by someone else. Well here
comes the role of trademark registration.
Trademark is a
unique and distinct identity of your business. It helps in the creation of the
brand image. When you get your trademark registered, you own the intellectual
rights of that trademark.
In this fiercely competitive market, cases of business
identity thefts are not unheard of. Trademark registration
will protect the identity of your business. None of the competitors will be
able to use the same trademark for their business. What about the growth of
your catering business? You are successfully running one catering business and
making profits out of it, it is time to open a new branch then trademark will
play a major role in this.
You are entering
into a multidimensional industry; prepare yourself to face the unexpected. And
if you want to be a player in the long run, you need to have a proper set of the
business plan. Following are the things
that you must keep in mind before starting
a catering business-
To be the main
player of a catering business in the
market, you must have the right kind of manpower and inventories.
Basic Checklist of the Inventory to work for
If you are
looking to start your own catering business, then you must go for it. This is
the best time to enter the market. You have the right skill set, know the art
of delivering delicious delicacies; Great! The only hustle is to fulfill the
legal formalities involved in the business. But don’t you worry there is a single
platform where you can get all the registration certificates, fulfill other
Contact Enterslice to start your catering business today.
Read our article:New Food Packaging Regulations Which You Must Be Aware Of
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