Which License is Required to Open a Foodtruck in India

• Home
• /
• Knowledge Base
• /
• Business Registrations
• /
• FSSAI Registration
• /
• Which License is Required to Open a Foodtruck in India

Which License is Required to Open a Foodtruck in India

Preface: This post was originally published in 2019 and has been updated on July 22, 2025, to provide you with the most current and accurate information.

A foodtruck business is one of the most popular food businesses across the world. It is especially popular among entrepreneurs who want to start a food business but have a limited budget. In this blog post, we shall discuss all the necessary licensing requirements to start a food truck in India. 

So, if you’re planning to open a food truck business anytime soon, going through this blog post will help you learn about the mandatory requirements. 

Why Start a Food Truck in India?

Starting a food truck business is an affordable option for those who cannot afford the high costs associated with renting a cafe or restaurant space. Foodtrucks often attract regular customers by providing cost effective alternatives to expensive meals that sit-down restaurants generally offer. This model is especially appealing to individuals who prefer takeaway meals during their work breaks or while heading home. 

By launching a foodtruck, you can cater to such customers and generate profits. In addition to this, the maintenance costs for a foodtruck are usually lower than those for a traditional restaurant. 

Also, fewer employees are typically required to manage a foodtruck as compared to most food businesses. All these factors make starting a foodtruck business a promising and appealing business venture for the entrepreneurs.

Mandatory Licenses and Certifications for Setting Up a Food Truck

For setting up a foodtruck in India, the following licenses and certifications are required. Make sure you secure them in a timely manner for smooth business operations.:

(a) Business Registration

You must choose a business model for operating your food-truck business. You can choose to establish it as a sole proprietorship. For this, no business registration is required. However, this business structure comes with unlimited liability against losses and debts. Therefore, it is recommended to register your business. 

You can choose to register your business as a one person company or private limited company for greater business credibility and easier access to funding. For this, you must file an application (using SPICE+ form) with the Registrar of Companies (ROC) and secure a business incorporation certificate. 

(b) FSSAI License

FSSAI license, issued by the Food Safety and Standards Authority of India, is mandatory for food business operators. Since a foodtruck serves food, it is necessary for such a business to obtain an FSSAI license.

There are three different types of FSSAI license. The exact license you require depends on the annual turnover of your business. If the annual turnover is less than Rs. 12 lakhs, then you need to secure FSSAI basic license. However, if the business turnover is between Rs. 12 lakhs to Rs. 20 crore in a year, then FSSAI state license is the required license. 

In case the yearly turnover is more than Rs. 20 crore, then you need to obtain FSSAI central license. To apply for the basic license, you must file an application using Form A. To apply for a state or central license, you must use Form B to file an application.

(c) License under Shop and Establishment Act

To conduct any business in India, it is essential that you obtain a license under the Shop and Establishment Act. You must obtain this license within 30 days of commencing the business operations. 

Each state/union territory has its own Shop and Establishment Act. So, the process for obtaining the license depends on the Act applicable to your state/union territory.

(d) Health Trade License

Health trade license is a mandatory permit that must be obtained by businesses operating in industries that impact public health, such as the food industry and healthcare industry. So, make sure to secure this license for your foodtruck business since it is a part of the food industry.

The municipal corporation is responsible for issuing the health trade license for businesses in India. This license ensures compliance with health and safety standards and protects the public from potential health hazards. 

(e) GST Registration

If your business falls under GST criteria, it is mandatory to file for GST registration. The threshold limit for GST registration is Rs. 40 lakhs for goods and Rs. 20 lakhs for services. You must complete the process for the registration online via the official GST portal.

Once you are registered under the GST regime, you will receive the GST registration Certificate. This certificate will contain Goods and Services Tax Identification Number (GSTIN), which is a 15-digit number unique to your business. 

Things to Keep in Mind While Establishing a Food Truck Business

Here are certain things you need to keep in mind when establishing a food-truck business:

(a) Go for an affordable food truck

Accessibility to places and affordability on the pocket are the two main reasons that most choose foodtruck business. As the foundation of this business, a foodtruck, therefore, should be as per your exact requirements. 

What are you selling? How are you going to prepare for it? How much space is needed? How are you going to interact face to face with the customers? What kind of terrain are you going to ride your truck on? Take note of these questions, and answer them.

As you answer these questions, you are going to automatically formulate the budget that you need to get started. 

(b) Decide the raw material needed

What are you going to make in the foodtruck – is the deciding question when you are looking for raw materials to set it up. You are going to need a specific table to serve and communicate with your customers to take their orders.  

Then, you have to get kitchen equipment. As the foodtruck is in India, you need a bit of Indian flare to make your business resonate with your customers. So, your kitchen equipment can be like a stove, rolling pin, rolling board, skillet (tawa), knives, paltan, kadhai (frying pan), chimta (tongs), fryer, and some food preservation and reheating equipment such as refrigerators and microwaves.

They are only general equipment that you might want to purchase – there is no compulsion that you have to purchase these exact equipment. However, if you do, you can expect the cost of these equipment to be around 2 to 3 Lakh rupees.

Other than the raw materials to set up the kitchen, there are also other raw materials needed to set up the food. Meats, veggies, spices, and even fruits can be purchased in bulk. However, if you want to actually make a profit, you need to find a cost-effective way to combine the quality and affordability of your food.  

(c) Pick the best route and area to run your food truck in

If a foodtruck is the foundation of the foodtruck business, the best route is the foundation to make this business successful. Therefore, the fourth thing that you have to decide upon is the route and area upon which you are going to sell and market yourself. 

Let us give you some hints for the location:

• The tired office workers are always looking for good food. Mostly because many of them are from another state, and therefore, don’t have access to meals from home.

• If you want to be a fast foodtruck, you cannot go wrong with establishing your route around schools and colleges.

• If you want to establish a healthy foodtruck – for healthy foods and juices – right beside the gym is the winning location.

(d) Fulfill licensing requirements in a timely manner

Without proper legal license and registration, you cannot legally operate the food truck. There’s no two ways about it. So, make sure you get all the necessary licenses and registration certificates in a timely manner. 

Once you commence your business operations, it is essential that you ensure timely license renewals for smooth and continuous business operations. 

Conclusion

Foodtrucks are popular not only in India, but also in most countries across the world. For individuals who want to start their own food business but are hesitant to invest in a full-scale fancy restaurant, launching a food truck can be a great alternative. To get started, it's essential to ensure that you meet all legal and regulatory requirements. For help with this process, you can consider reaching out to the Registrationwala team! 

Frequently Asked Questions (FAQs)

Q1. Is FSSAI license required to operate a foodtruck in India?

A. Yes, since a foodtruck is a food business, it is essential to secure a FSSAI license.

Q2. Can I run a foodtruck without registering my business?

A. Yes, you can run a foodtruck without registering your business if you opt for the sole proprietorship model. However, this model comes with unlimited liability against debts and losses. If you’re okay with that, then you can go ahead and choose this model.

Q3. How can I register my foodtruck business in India?

A. To register your foodtruck business as a in India, you must file a business incorporation form via the MCA portal. After filing the form, you must receive approval from the Registrar of Companies (ROC). If you get the approval, your business will be registered in India.

Q4. Which exact FSSAI license do I need to run a foodtruck?

A. The exact FSSAI license to run a foodtruck depends on the annual turnover of your business. If it is less than Rs. 12 lakhs, then you need FSSAI basic license. If it is between Rs. 12 lakhs to Rs. 20 crore, then you require FSSAI state license. However, if the yearly turnover exceeds Rs. 20 crore, then you must secure FSSAI central license. 

• 5096 views