Anyone who wants to start a business of food delivery has to first get the mandatory food delivery business license, and in some cases, licenses. Thus, through the course of this blog, we are going to make you aware of every license required for online food delivery business in India.
Background of the Food delivery business in India
As you can see from Swiggy and Zomato, starting an online food delivery business has been quite profitable for those who are running it. And the reason can be summed up in two words: Easy eats.
Students who have to stay away from their parents, and professionals who have to venture far off from home to earn money, often don’t have access to fresh home-cooked meals. Online food delivery businesses have made that accessible for them. With a few taps on a food app, these students and professionals can order anything that they want to eat at that time. In other words, they have access to easy eats.
Let’s now talk about the statistics. Swiggy in 2018, saw an increase in its revenue by 232 percent. In the similar fashion, other online apps also experienced amazing increase in their income.
However, none of them would have been able to make this much money if they didn’t have the online food delivery license. Let’s now discuss the types of licenses that are there suitable for an online food delivery business.
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Shops and Establishments Act License
There are some places in India where before you start any kind of business that involves setting up a shop you need to acquire the Shops and Establishments Act License. Regulated by the Department of Labour, it’s a state-wise license and isn’t implemented all over the country. However, it’s implemented where it matters the most, like Mumbai. Thus, if you’re looking for Shops and Establishment’s act license, reach out to our experts of Regalguru.
You can think of FSSAI food license as the second most crucial permit to start a food business in India. The Food Security and Standard Authority of India, is not just responsible for issuing this license, it’s also responsible for ensuring that those it has issued this license follow the right procedures while preparation so that people’s lives are safe.
Health Trade License
In case your wish is to start an eating establishment like a restaurant or a hotel, you need to obtain the health trade License. Department of Municipal Corporation, more popularly known as the MCD department is the one that issues this license. To get it, there is no online path for you to follow. You’d need to pay a physical visit to the office and obtain the license.
Furthermore, the license is not just issued for eating establishments. If you’re running any manufacturing facility that can possibly have an impact on people’s health, you have to obtain the Health Trade License.
No one would think the “trademark registration” to be a mandatory requirement to run an e commerce food delivery business. However, when you think about it from a business perspective, it’s probably one of the most import business license. There are many active online food delivery businesses these days. To stand apart from all of them, you need to have a mark that represents your particular business. That’s why, you choose a trademark and you register it. It will tell the customers that it’s you who’re providing them food via online delivery when they are hungry.
According to the Section 2 (44) of the CGST Act, 2017, businesses involved with the activity of providing products and services online have to obtain GST registration. However, that’s only the case if their annual revenue is over 40 Lakh.
Shops and Establishments Act License allows you to setup your eating establishment, FSSAI lets you run your food business. To gain the trust of the people, you need the GST registration, trademark registration and definitely the Health Trade Registration. If you’re looking for any of them, reach out to Regalguru.