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Get Your Food Business Online with FSSAI Registration

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Introduction

Business owners are coming to terms with a realization that bringing their business online would probably be a profitable venture. Considerable change in lifestyle is welcoming the relatively newer concepts of ready to eat food, food at doorstep and home delivery etc.

The traditional way of visiting the restaurants is now slowly diminishing owing to the arrival of the era of smartphones, E-commerce platform and information technology. The Internet has enabled us to set up a common platform for customers, food businesses and other entrepreneurs.
Read Our Blog: FSSAI: Food Safety and Standards Authority of India

Food can be ordered online with just one click. Customers can now browse online through various options of restaurants and food varieties. The best part is that the food that is ordered online can also be tracked via the application.

Quite recently, there has been a surge in the food delivery startups in India who are busy fulfilling the demands of its ever enlarging customer base. Online food delivery systems come packed with benefits like time saving, home delivery and cost economies etc.

Market-based on online food delivery

With the online food delivery industry setting its foot, the conventional system of restaurants is constantly suffering a blow. The market is flooded with many key players placed internationally, nationally or locally. Orders by these players are received via mobile applications or any other online platform.

Food is delivered well within time and the bookings can also be made on advance basis. The payment is received by various online methods, cash on delivery etc. Some of the major players in Indian food industry that are capturing a major chunk of market share include Zomato, food panda, swingy etc.

Is online food delivery business a future prospect?

This sector carries the potential to grow tremendously. Let's have a look over the future prospects of the online food business, which are as follows:

  1. A collaboration or tie up can take place between the Hospitals and that of the online food enterprises and in a way can help with the delivery of the specifically cooked food for different patients.
  2. The online business can be kept going with the customers being offered with lucrative discounts and coupons.
  3. The business can even deliver food to far away locations and where there is only remote access.
  4. Varied food items can be delivered including snacks, sweets and other delicacies. Also home cooked food is much in demand and hence it can also be delivered smoothly.
  5. The food can be delivered in environmentally friendly packaging.
  6. The food business can offer additional nutrition related advice, health tips and weight loss management.
  7. Customer base can be increased by offers rolled out on a routine basis, which can take place during season’s time and on holidays.
  8. In order to deliver the food, personal vehicles can be brought in use.
  9. Another innovative idea would be to pool the orders and deliver them collectively.

Online food business: Licenses required

Before you plan on starting your online food business, the first step is to get hold of all the requisite licenses so that you can function smoothly and to keep all the hindrances at bay. 

In short, if we can list the much-needed licenses, we can list them up, as given below:

  1. Shops and establishments Act license
  2. Registration under the trademark
  3. Registration of the GST
  4. Agreement related to E-commerce
  5. Health License
  6. FSSAI license

Shops and establishments Act License

This license must be fetched on a prior basis before you start your business online. The license can be obtained from the relevant authority situated in a particular state or area. The Department of Labour is the one that works in lines with regulating this license.
Read Our Blog: Why Should Food Industry Need A Fssai License

In addition it is highly crucial to know that this act of shops and establishment is confined to statewide enactment. In a lay man’s language, if you are planning on starting the business in Delhi, then you have to get a license by the relevant authority situated in Delhi.

If in case, any process related inquiries crop up and you are stuck with any difficulty, you can very well get in touch with FSSAI License consultant, namely, Corpseed. They will lend a patient ear to solving all your queries and would also help you out in fetching one.

Health Trade License

This license, which is called a health trade license, must be obtained by some specific businesses who are involved in selling and manufacturing the food related items. Generally this license is liable to be issued by the Department of Municipal Corporation. Consequently, to obtain this license you are required to approach the municipal corporation of your area respectively.

Once you are granted with this certificate, you are endowed with the permission to carry out the specific food business since it casts direct implications on the health of the people. Health trade license is necessary when it comes to ensuring that no compromises are being done with the quality of the food. It also extends to the customer, the satisfaction that the food they are consuming is apt for consumption.

In addition, it assures that the establishment abides with the safety and health norms.

Trademark Registration

Trademarks can be anything ranging from a design to a logo. Trademark is basically used as a distinguishing method that differentiates between the products of one source from that of the other. 
Read Our Blog: What is Trademark Registration?

Here comes the interesting part as to why one would require the trademark registration. The point is very clear, it being that with the food business going online, you would make use of a website or an mobile friendly application. Also the business owner would need to have a logo to prevent other players in the market from stealing your ideas and products. This will act as a safeguard.

While registering for the trademark, choose carefully and select the appropriate class of category from the given classes of trademark. Know that you can get your logo registered with the help of a trademark registration consultant. Corpseed is one such consultant, get in touch with them for trademark registration.

E-commerce Agreement

This agreement establishes a contractual relationship between the owners of the website, in this case the owner of the food business and that of any other third party. Taking the example of the food business operation, we can say that the contract is set to be formed between the owner of the food business, the restaurants providing food and the delivery guy.

Essentially, an E-commerce agreement must contain the following aspects as mentioned below:

  1. In the first place, you would be displaying the information with respect to the restaurants who are providing food, for that matter you would be using their logo on your website and for that you would be requiring their permission.
  2. In the second place, the agreement must contain the detailed information pertaining to the kind of food you would be offering.
  3. The E-commerce agreement must mention the term of the agreement, in other words for how long the agreement would subsist, together with the conditions of termination.
  4. Further, the agreement must include about the payment method and how other monetary transactions would take place. This has to be mutually decided.
  5. Next thing to be included should relate to the mode of payment to be opted by the customer. The mode of payment can include cash on delivery or other electronic modes.
  6. It must be made clear well in advance by introducing a clause in the E-commerce agreement that who would be the owner of the business. These things must be sorted at first instance so that no future claim by any third party arises.
  7. Other things must also be considered well in advance and must be made part of the agreement. These can include the things like jurisdiction, confidentiality related matters, other liabilities etc.

GST Registration

As mandated by the law, it is deemed necessary that any business offering services on an online platform must obtain the GST registration. 
Read Our Blog: GST New Updates

Signage License

The business needs to expand via marketing it digitally, for resolving this issue, you would require a signage license. After you fetch it, you can market it very well through posters and other advertisements.

FSSAI Registration: online food business

  • What is FSSAI?

The Food safety and standards authority of India looks into registering and governing any food business. This authority works towards ensuring food safety and monitors all the activities of the food business.

Food safety and standards Act, 2006 is the governing statute under which the FSSAI authority is formulated. The authority makes sure that the quality is maintained and is kept upto the mark using quality control methods.

Rules and regulations are invariably laid down by the FSSAI authority. In line with these rules the food business operators must function and carry out all their activities.

FSSAI license/FSSAI Registration

Every food business owner who wishes to bring their business online and is involved in selling food items, is very well required to obtain the FSSAI license or get their business registered under the FSSAI or in other words obtain FSSAI registration.

The FSSAI registration number entails a number consisting of 14 digits which is duly issued by the FSSAI authority and gets to be printed on the package of the food. This registration number indicates the limit of the producer and also mentions the details about the state in which it has been assembled.

The registration is deemed utterly necessary to put a check on the Food business operators as to if they are adhering to the quality standards.

FSSAI Registration: Types

FSSAI license finds its basis on the volume of the business and its associated premises. The applicant would be issued the FSSAI license which is dependent on the turnover or the installed capacity of the business.

The license can be categorized under mainly 3 categories which can include:
a)    State FSSAI license
b)    Central FSSAI license
c)    FSSAI registration

FSSAI license: what is the procedure?

The registration begins by filling out the Form A and Form B and it has to be submitted to the Food and safety department. Applications can be made on the online portal available which is known as the FoSCos portal.

The acceptance of the application by the Food and safety department is based on discretion and can even be rejected if all the formalities are not complied with. The applicant would be informed within a period of seven days as to whether their application is accepted or rejected.
Read Our Blog: How to Start Food Business in India

In the event, the application is accepted, then the applicant would be granted with the certificate of registration together with the registration number and the applicant’s photo. This certificate of registration must be displayed in the most visible places at the office premises that too during the business hours.

What Documents are Needed to be Submitted for FSSAI Registration?

The following documents must be uploaded or submitted together with the application, which are as follows:

  1. In the first place Form B must be uploaded which should be aptly filled and should hold signature.
  2. In the second place, the plan with respect to the processing unit displaying the dimensions must be uploaded.
  3. Next, the list of all the directors and partners must be made together with their contact details and photo Id.
  4. All the machinery and equipment to be used and employed must be specified along with their capacity.
  5. The food to be delivered must be categorized in the list of food categories.

Conclusion

In the nutshell it can be concluded that the online food business is set to trigger a change in the lifestyle of the people. The online food delivery companies are regularly including innovative ideas to serve the interest of their clients in the best possible ways.

Sustenance of the online food delivery business is ensured by the enormous benefits offered to both the customers and the online restaurants. This sector is proving to be a lucrative field for entrepreneurs to try their hand. Also investors are taking keen interest in this field.

In order for an online food business to be successful, the main ingredient of experienced marketing and other technical aspects must be well catered to. All the stakeholders and other aggregates must be streamlined into a dynamic powerhouse backed by motivation.

It is advisable that FSSAI license or FSSAI registration must be fetched by anyone wishing to start an online food business.

BOOK A FREE CONSULTATION

Get help from an experienced legal adviser. Schedule your consultation at a time that works for you and it's absolutely FREE.

Author
Vinay Singh
Vinay Thakur is Managing Partner in Corpseed. He focused on payments, digital transformation, and financial technology for over 15 years and holds strong expertise on fintech startups, banking innovation, and investors with a keen understanding of the trends and activities of startups, banks, and investors in the space.