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How to start Food business in India

How to start Food business in India

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 [1]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.

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.

Service Tax Registration

Service Tax registration is one of the requirements which is applicable to the food industries especially fast food chains business. Therefore, if you are going to enter into the arena of food industries then do obtain service tax registration if the value of your taxable services exceeds Rs. 9 lakh because it is the mandatory requirement under the service tax laws.

VAT registration

VAT stands for Value added tax and it is an indirect tax which recovered by the restaurants’ owner from the customers and deposits the same with the state government. So, VAT is applicable on the foods which are cooked in the restaurants because in this way restaurants create value addition. VAT rate vary from state to state, so you have to follow the VAT as per state wherein you are running your food business.

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.

[1] Google Source

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