What Licenses Required For Cloud Kitchen Business Start?

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What Licenses Required For Cloud Kitchen Business Start?

The cloud kitchen is a new thing in the market and most of the people who want to start their own food business are unaware of the concept of cloud kitchens. Cloud kitchens are the food businesses but they don’t have a physical location, they operate through technology. 

For example, Swiggy and Zomato are the two most popular online food ordering and delivery platforms in India. Small food businesses, cloud kitchen businesses, and even big restaurants are registering themselves on these platforms to connect with customers. 

Cloud kitchens are using this system very well to operate the business at a low cost. Let’s understand, how technology is helping the food businesses, especially the cloud kitchens. These food delivery platforms take responsibility for picking up the food packages from the kitchen and deliver it to the customer. Their service is quick, efficient and budget-friendly. That’s why the concept of a cloud kitchen is becoming popular among customers. 

However, to operate the food business across India an FSSAI license is important to obtain even cloud kitchens require a license. In this article, the process of obtaining a license is provided.

What is a Cloud Kitchen?

The cloud kitchen is also known as a ghost kitchen or virtual kitchen. It is a space where the food businesses can operate a business without any pressure of high-rent and customer service. A cloud kitchen operates on technology and requires online marketing to grow its customer base. 

With the increased popularity of the business, the size of the Indian cloud kitchen market reached US$ 969.5 Million in India. As per the reports of IMARC Group, the market will reach US$ 2,948 Million by 2032, exhibiting a growth rate (CAGR) of 13.2% during 2024-2032. 

Benefits of Cloud Kitchen License

The online system makes the process of selecting a food item and placing an order easy. That’s why most customers now prefer online options over offline. So, the growth chances of these businesses in future are higher. Below are some benefits of a cloud kitchen license, and these are as follows:

Experiment Opportunity

A cloud kitchen concept allows operators to experiment with new offerings, and recipes, without any pressure of cost and customer services. In today’s time, customers are looking for different tastes through dishes. In the experiment, just make sure your dish looks appealing for people to choose it.

People nowadays take pictures of food to post on social media. So, the look of the dish is important which restaurants and other food businesses are doing perfectly. For example: Pot Pot is an Indian cloud kitchen business that delivers food in eco-friendly pots and they claim that their packaging is easily recycled and upcycled.

Property and Location

One of the biggest expenditures in a business is the location. If you purchase the land and build a kitchen or restaurant on it, then it will not be cost-effective. In case, you rent a restaurant, then the amount of rent will be higher if you choose a place in a crowded location, then you have to pay high rent because of the popularity of the location but it has the benefit that you get higher visibility.

On the other hand, in the case of a cloud kitchen, you don’t need to own a specific location you can start a cloud kitchen from your house as well. The other options for location are the basement, catering kitchen, warehouse, or even your parking lot. This benefit serves well especially when you are tight on budget.

Documents Required to Open a Cloud Kitchen

As per the FSSAI official website, the required documents to open a cloud kitchen are different for the state or Central. The documents are as follows:

Basic Documents for Registration

• Authorized person address proof
• Passport size photo
• Business name and address
• FSSAI declaration form
• Nature of business details

Documents for FSSAI State License

• Rental Agreement of Business Premises.
• ID Proof of the Concerned Person (Aadhaar Card / Driving License / Passport / Voter ID)
• Government Registration Certificates such as GST registration, or company registration (if have any)
• MoA & AoA or partnership deed copy (in case of a Pvt Ltd. company)
• Trade license, Shop and Establishment Registration, Panchayath License, Corporation License, Municipality License (any one is compulsory)
• Nature of Business.
• FSSAI declaration form

For the Manufacturing or Repacker category, these other documents are required:

• Manufacturing unit photos
• Plant Layouts.
• Machinery details used for production in your company letterhead (capacity and horsepower details)
• Product details on company Letterhead.

Required Documents for FSSAI Central License

• Rental Agreement of Business Premises.
• ID Proof of the Concerned Person (Aadhaar Card / Driving License / Passport / Voter ID)
• Government Registration Certificates (if have any)
• MoA & AoA or Partnership deed copy. (In the case of a Pvt. Ltd. company)
• IE Code (Import Export Code) Certificate (for the category of export and import IE code is compulsory)
• Authority letter from the company letterhead to the concerned person stating that he is authorised to file an FSSAI application.

For the manufacturing category submit the below written other documents.

• Manufacturing unit photos.
• Plant Layouts and product details.
• Machinery details used for production in your company letterhead (Capacity and horsepower details)
• In case your business is to a mineral water plant then a water test report is compulsory.
• List of food categories desired to be manufactured (In case of manufacturers).

How to Apply FSSAI License for Cloud Kitchen?

To start your cloud kitchen, you require an FSSAI license and for that follow the below-written steps:

1. Visit the FSSAI official website.
2. Click on Login Food Business, fill in the details such as License/ Registration/Application number and Proceed. You can also apply for a new license or registration.
3. To apply for a new license or registration, first choose the location of the premise of operation such as general, railway station, airport or seaport.
4. Select the State, and then the type of license such as Manufacturer, Trade/Retail, Food Services, or Central Govt. Agencies, Head Office.
5. Choose Food Services and then Food Vending Establishments. You can choose other options as well as per the requirement.
6. In this choose the option that your annual turnover is less than or upto 12 lakhs and the second option is more than 12 lakhs.
7. Click on proceed, an option will appear on a new window that you are eligible for a license. Click on the option and a new window of the application will open.
8. In this, fill in the details such as premises details, product selection, communication details, required documents and lastly payment. 
9. After completing all the details, the details of your license will appear on the screen.
10. Note: A Food Business Operator (FBO)'s premise can have only one food business License or Registration on which any number of kinds of businesses (KoB) can be endorsed.

Conclusion

To conclude, cloud businesses are a new concept and businesses are opting for this for growth and profit. Also, the benefits of these over restaurants are making it easier for new businesses to set up and make those businesses sustainable. If you are looking to start a cloud kitchen, then reach out to Registrationwala. We assist you in the process of applying to finally obtaining an FSSAI license. 

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