How to Start Agri and Food Processing Firms in India?

  • July 26, 2023
  • Registrationwala
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Food Industry is booming in India, the revenue of the market is around 905 billion dollars. The market is expected to grow annually by 8.40% CAGR from 2023-2028.


Similarly, processed food is becoming famous and entrepreneurs are looking to set up food processing firms. In food processing raw material turns into consumable products through different techniques. So, there is a process to start an agricultural and food processing business. Check how to get an APED license and start a food business below.

Benefits of Food Process Business

The benefits of food processing business are as follows:

  • Reduce the wastage of perishable produce
  • Add value to the agricultural produce 
  • Enhance shelf life of products
  • Ensure commercialization of agriculture
  • Create ample job opportunities
  • Improve farmer incomes
  • Creating surplus for the export of agro produce

Documents Required for Food Processing Business

The following documents are required to register a food processing business:

  1. Photograph of all the Directors/ partners/ Proprietors.
  2. PAN Card of all the Directors/ partners/ Proprietor (not mandatory in case of foreign Director).
  3. ID proof of Director/ partners/ proprietor (must have anyone Driving license/ passport/ Voter ID).
  4. Electricity bill or any other utility bill for the address proof of the Registered Office.
  5. Passport (Mandatory for Foreign Director, must be in English language)
  6. If the proposed Director is in Foreign country then all the documents must be duly apostle by the home country & if the director is presently in India then such apostle is not required.

Process to Set Up a Food Processing Business in India

The process to start a food processing business includes APEDA registration and to register with APEDA includes the following steps:

Business Research and Market Analysis

In the start, analyzing a product is important and focuses on finding the product which fills the gap in the market or solves a problem of a specific group. Businesses can do this by conducting market research and surveys and then take a decision. You can also include current food processing industry, economic and industrial changes, this will also help in taking a mindful decision.


After the basic market research gets done, next make the business structure legally stable. Choose any type of company such as Private Limited Company, Public Limited Company, Partnership Firm, Limited Liability Partnership, etc. 


However, the final decision to follow a particular structure will depend on the size of manufacturing unit, yearly turnover, objective, and other mandatory requirements. In case you can’t decide on a structure, seek help from legal professionals, who will recommend the right type of company.

Location of the Factory

Choose a location which is easily accessible to get the resources such as manpower, raw materials, electricity sources, transportation, etc. Remember, in some states the government is providing subsidies and tax exemption, so choose accordingly. In order to reduce the cost and faster the process, the location should be perfect to get the raw materials.

Business Plan and Strategies

All the above information must be in-line with the requirements of processing units. Create a blueprint about the new policies and strategies which are followed to operate the business process. Through this future plans and results can be roughly decided. For setting up a processing unit, one must keep in mind the future outcomes of the industry.

Collect Funding

To bring the material and maintain the food chain, having funding in business is required. The funds will depend on the size and nature of the industry. Businesses can take the funding by listing the shares in the Equity Market, through crowdfunding, pitching to angel investors, and others.

Legal Requirements

Once the company gets formed, it should be registered with the relevant authorities before reaching out to customers. As per the Companies Act 2013 the companies must be registered by submitting the certain documents and required form to register a company in India. Having APEDA license is required as well.


Other than this, the company must register with the various taxes such as Sales tax, Excise and customs registration, service tax, etc. Trademark, IPR registration which includes patents, copyrights, etc is mandatory to receive. Along with this, the Food Safety and Standards Act, 2006 and Standards and Weight Measure Act should be followed.


After taking all the steps and collecting information, now it is important to strategically implement these steps, so everything needs to be put in place. The different workers should be used to improve the sales and the quality of the product.


Starting up a company in India requires a clear and extensive approach. Also the business owners must have a clear understanding of legal implications to ensure the seamless process of business. But to complete the process, you are required to have tons of documents and do paperwork. Connect with Registrationwala, we make the APEDA registration process seamless and will comply with existing bylaws.

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