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After rice, wheat is the second most important staple food in India. It is primarily consumed in the northern and western parts of India in the form of roti, chapati or phulka. If you’re wondering how to open an atta company in India, check out this blog post. Here, we shall explain all the legal and regulatory requirements.
In India, atta is a staple that is widely consumed, particularly in the country's north and west. Because it is made by grinding whole wheat grains, it is regarded as a nutrient-dense, high-fiber and high-protein substitute for maida or refined flour. Given that wheat is a necessary, everyday staple in the nation, starting an atta business can be a profitable endeavor.
Many people are switching from unorganized local mills (chakki) because packaged, branded goods adhere to more stringent laws as well as hygienic standards. Additionally, traditional chakkis typically do not offer specialty attas like gluten-free atta, oatmeal atta, almond atta and other variations that some brands offer. This is a big advantage for health-conscious consumers.
As consumers become more conscious of quality, hygiene and nutritional value, packaged attas that are reliable, safe and convenient are becoming more and more in demand. This gives business owners a great chance to start a profitable atta company that satisfies contemporary dietary requirements while adhering to all the industry standards.
Here are some of the best atta brands in India:-
Aashirvaad Atta
Pillsbury Atta
Fortune Atta
Patanjali Atta
Nature Fresh Atta
Annapurna Atta
Organic Tattva Atta
Supreme Harvest Atta
To start a wheat company, here is a step-by-step process:-
You have to choose between running a large-scale atta business with an automated manufacturing facility or a small-scale atta business. Generally, only a few kilograms of atta, i.e., between 10 to 50 kilograms, can be produced in an hour by a small business.
In the case of a large-scale business, approx. 200-1000 kg of atta could be produced in one hour. Apart from choosing the scale of business, you have to choose whether to sell value-added goods like multigrain flour, maida or sooji or just plain whole wheat flour.
After deciding the business model and scale of operations, you must choose a suitable business structure. If you want to operate a small-scale business, you can opt for a Sole Proprietorship or Partnership Firm. For both these structures, formal business incorporation is not mandatory. However, it is important to note that they impose unlimited liability on the owners. In case of losses, the personal assets of the owners may be used to repay business debts and liabilities.
For large scale operations, it is recommended to register a Private Limited Company or Limited Liability Partnership with the MCA and obtain a Certificate of Incorporation. Both a Private Limited Company and LLP provide limited liability protection, meaning the personal assets of the owners will generally remain protected from business liabilities.
If not the most important, one of the most important requirements for operating an atta business is obtaining FSSAI license from the Food Safety and Standards Authority of India. Securing this license demonstrates that your company complies with the Food Safety and Standards Act 2006. Further, it ensures that the flour the business produces or sells is safe to eat, not expired, is hygienic and up to the required quality standards. An FSSAI license is not only required by law but it also enhances your brand's credibility as well as boosts consumer confidence.
There are three types of FSSAI licenses, namely, FSSAI basic license, FSSAI state license and FSSAI central license. The one you need to obtain for your business depends on the scale of operations, annual turnover and nature of your food business activities. If the business turnover is up to Rs. 12 lakhs, then FSSAI basic registration license for business must be obtained.
The state license is required for medium sized businesses with a turnover between Rs. 12 lakh and Rs. 20 crore. For large scale businesses with a turnover exceeding Rs. 20 crore, or for businesses involved in import/export or operating in multiple states, FSSAI Central License is mandatory.
For pre-packaging atta for sale, you need to obtain the legal metrology certificate for your business. By securing the certificate, your business will showcase compliance with the packaging rules like mandatory net weight declaration, manufacturer details, etc.
To secure the certificate, you need to file an application with the Legal Metrology Department of the state/union territory where the business is located. The application must be filed in the prescribed format.
GST registration is required for a business if its annual turnover exceeds Rs. 40 lakhs for goods or Rs. 20 lakhs for services. However, for export business, this registration is required regardless of annual turnover of the business. To secure the GST registration, you need to file an application online via official GST portal.
After successful registration, you will obtain a GST registration certificate. It’ll contain a GST identification number, which is unique to every business registered under the GST system.
Starting an atta company can be a profitable business. However, you need to carefully decide the business model as well as scale of operations. Additionally, you must secure all the mandatory licenses as well as registrations to operate your business legally in a compliant manner. One of the most important licenses is the packer license, which is required for pre-packaging atta for sale. You can get in touch with our LMPC consultants at Registrationwala if you need professional help in getting this license for your company from Legal Metrology Department. We'll make the entire process for obtaining this license easy as well as seamless for you.
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.
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