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How to Start your Bakery Shop in India?

Narendra Kumar

| Updated: May 29, 2018 | Category: FSSAI Food License

Bakery Shop

This decade is experiencing a huge surge in the number of entrepreneurs aiming to open their start-up. Many people strive hard to set up their own business instead of working at someplace. One of the options available these days is starting one’s bakery shop. There are many reasons for the same. The primary reason is that products available at a bakery never goes out of trend. The demand for muffins, cakes, pastries, cupcakes is, in fact, increasing at a rapid pace. Thus, the idea of starting a bakery shop holds a lot of merits. Many people who love whipping up delicacies are working to make their dreams come true.

Do you require FSSAI License for Bakery Shop in India?

When planning to start a bakery shop in India, it is imperative to create a Business Plan. A lot of factors need to be considered when designing a plan. Right from operations to budget, everything needs to be given due importance to make the business successful. You can adopt any business model, partnership, LLP, Company or proprietorship as per your convenience and budget.

A reasonable-sized bakery business operations require an investment of Rs. 15 Lakhs. Depending on the location being chosen and bakery equipment being purchased, this figure may vary.

Look for an appropriate location for the Business

The first step towards making your dreams come true is

  • To choose a suitable place for your business.
  • If you want heavy footfall in your bakery, you must select high-end shopping streets or a reputed market.
  • Ensure easy accessibility to the shop.
  • The area of the bakery must be enough to have a separate kitchen and a place where ready products can be displayed. Either it can have two floors, or it can be big enough to have two different areas.

A lot will depend on the rentals in the area and your budget.

Ensure Basic Facilities are in Place

Once the location of the shop has been decided, the next step is to make sure that the shop has proper water and electricity facilities. There should also be adequate drainage facility. Once you have checked everything, next, you need to prepare an appropriate legal agreement.

Get a No Objection Certificate

Take a No Objection Certificate from the owner of the business stating that he has no objection if his shop is going to be used for a food outlet.

Get Necessary Licenses

When planning to open a bakery business, you will need to apply for five licenses. It includes GST Registration, FSSAI License, Fire License, GST Registration, and Local Municipal Corporation Health License.

The most essential licenses that need to be issued before a bakery business can be started is GST, FSSAI, and Local Municipal Corporation Health License.

Also, Read: Setting up a Food Truck Business in India.

Getting FSSAI License

Getting a Food License is effortless. One needs to visit the online portal of FSSAI (www.fssai.gov.in). You can also get the license issued by using the services of various agencies. They charge no more than Rs. 5, 000 for these services and it includes a license fee and complete paperwork. One can also avoid renewal fees that have to be paid every year by getting a 5-year food license. The FSSAI License five years fee is Rs. 15, 000.

Getting GST Registration

Another critical step that is a must before launching your bakery business is to get GST Registration. You can seek the help of professionals for the same. GST registration is state-specific. Hence, it is imperative that GST Registration is sought in the state where your bakery is located. In case, you are planning to have outlets in different states; you will have to register in different states.

The documents required for this purpose are a photograph of the proprietor or the owner of the business and in case of a partnership, the photographs of designated or Managing Partner. You also need to submit proof of registration and proof of principal place of registration. You also need to submit bank account documents. Fill up the Form GST REG – 01 and upload all the documents mentioned above. You can also sign the documents using digital signatures. Once the documents have been deposited, these will be verified by the authorities. If the documents are accurate and authentic, you will be issued a GST Registration Number.

After availing these licenses, you are all set to embark on your new business.

Also, Read: Major Difference Between Registration and License from FSSAI.

Narendra Kumar

Experienced Finance and Legal Professional with 12+ Years of Experience in Legal, Finance, Fintech, Blockchain, and Revenue Management.

Business Plan Consultant


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