How to start Food business in India

  • July 26, 2022
  • Dushyant Sharma
Want to know More ?

The food industry is something which never gets affected by the business cycle. This is one of the evergreen industry and when it comes to food how can Indian be lag behind because Indian loves food. If we go by numbers then Indian food and grocery market are the world's sixth largest, with retail contributing 70 percent of the sales. Food has also been one of the largest segments in India's retail sector, which was valued at US$ 490 billion in 2013.

Also Read: All about FSSAI Rules & Regulations

Having own restaurant may be a dream of every food lover but dreaming and taking action is two different things. Most of the people hesitate to take action because starting a business is not a child play. Being an owner you have to take care of each every aspect of business be it expense management or hiring people or complying laws etc, a list could be endless. Entering into food business can be so many like one can think about franchise model or having/creating its own brand by starting from the scratch.

To help young entrepreneur a little, a guide in the form of the following list has been carefully compiled which will definitely help you to avoid early stage pitfalls:

Choosing business entity

Firstly, be clear in mind regarding the entity type because that will help you to take a further decision in your business like from where to gets funds, what will be the liability of the business in case of defaults, how management or shareholders control the company etc. All these questions depend upon whether you want to incorporate private limited companies or LLP or public limited companies.

Each entity has its pros and cons which you have to take care before launching your business. Don’t adopt the hit and trial method to run your business.

Food business operating license

All restaurants operating throughout India are FSSAI, and all the restaurant has to obtain FSSAI license otherwise it is illegal to operate. This is one of the prominent requirements to start food business otherwise you can be stuck on a legal issue. FSSAI regulations make sure of Food safety from farm to the plate of the consumer.

Shops and Establishment License

Shop & Establishment Act is one of the legislation which requires a hotel, restaurant, boarding, or eating house, a cafe to take license or registration certificate.

GST registration

GST registration (Good and Services Registration) is the most important registration for Food industries in India, especially the Food Chains. There are different GST rates depending upon the location and type of Food businesses you are in. The lowest rate is 5 % with the ITC and the highest rate is 18% with ITC.

Trademark Registration

Every business, at last, requires a unique identity to make aware the general public about your business. Starting you business is one thing but creating a brand or value creation is different things. Trademark registration is one way to create your business image. Trademark establishes the relationship between the goods or service and trademark’s owner. Since trademark can be registered in the form of a logo, tagline, image etc, therefore can be visualised easily.


This is simple one sheet guides to start your restaurants business in India which can help the young entrepreneur to observe other aspects as well to avoid any hassle.

  • Share This Post

Dushyant Sharma
Author: Dushyant Sharma

Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.

Related Posts

to our newsletter