Everything You Need To Know About Online Food Business

Introduction

The development of e-commerce businesses is inevitable, every business needs an online presence to survive in this digital era, including the food business. The developments in e-commerce business such as quick delivery and increasing demand for quick, delectable and healthy food have resulted in the setting up of an uncountable number of cloud kitchens and other online food businesses. 

The Indian food industry has a worth of over $500 Billion. It is one of the largest food markets, and it is multiplying. It is expected to grow by 10% within the next 5 years. Several factors are responsible for growth such as increasing population with disposable income, increased demand for packed and processed food, health and lifestyle awareness and urbanisation.

Therefore this is the best time to make the strategic move to bring your existing or new food business online. This decision will not only bring convenience, automation and digitalisation to your business, it will also give access to a large online customer base. Moreover, your operation cost may also be saved along with increased sales and profitability. This article is a complete guide on making the online move and will let you know everything you need to know about this industry.

Understanding Online Food Business

An online food business is similar to a traditional food business, the only difference is with the customer base and how they order. In an online business, the customer is not required to come physically to the establishment. They can order online through their phones. There are various online platforms which facilitate online food ordering such as Zomato, Swiggy, Foodpanda, UberEats etc. The business may opt to register with any one or all of them to facilitate online food ordering.

However, there are certain requirements, which you need to fulfil before you apply for registration with these online platforms and start your online food business. Those requirements include Business Registration, FSSAI Registration, GST and other registrations.

Starting Your Online Food Business

To start your online food business, you need to either register with online platforms like Swiggy and Zomato or go solo by developing your own app or website. However, the first method is recommended for young and new businesses initially. Even the big food giants like Domino’s, McDonalds, Pizza Hut etc are also registered with these platforms besides having their own independent food ordering and delivery system. Therefore registering with such platforms will be a wise decision and for that, you will require the following documents:

• FSSAI Registration: This registration is required for each and every food business operating in India.

• Business Incorporation: You need to give your business a legal identity by registering it. Your business can be registered as a sole proprietorship, partnership, LLP or company.

• GST: If your business has an annual turnover of more than Rs 20 Lakh, then you’re required to register your business under GST.

• Other: Besides these essential registrations, you may also require other registrations or licences to operate your online food business depending on your business type, such as Fire Safety Licence, Liquor License, Health Trade Licence etc

FSSAI Registration

FSSAI stands for Food Safety and Standards Authority of India, which is a regulatory body which oversees food safety and standards in India. The main responsibility of the authority is to ensure the implementation of the Food Safety and Standards Act of 2006 along with the Regulations of 2011.

The registration of your food business with this very authority is called FSSAI Registration. It’s nothing but a 14-digit unique identification number which is allotted to every registered food business.

FSSAI Registration and licensing is divided into different categories and levels, in the following manner:

1. Basic Registration: If your online food business has an annual turnover of up to Rs 12 Lakh, then you need to opt for this registration. 

2. State Licence: If your business has an annual turnover of more than Rs. 12 Lakh and up to Rs 20 Crore, then you will be required to have a State Licence.

3. Central Licence: If your business has an annual turnover of more than Rs 20 Crore or if your business operates in Central Government agencies such as Railways, Airports etc. Then you require a Central Licence.

Document Requirements: Required documents depend on the category of licence, every category requires different documents. Therefore you need to first decide the category and then look up the required documents for that particular category.

Registration Process: The FSSAI registration and licensing process are completely online. You can visit the official FSSAI website to fill out the registration form and get your business FSSAI registered.

Other Registrations and Licences

As stated above your business might also be required to obtain other registrations and licence depending on the type of business and other factors. Other registration and licences, which may be required are as follows:

1. Fire Safety Licence: If your premise is of such as nature it requires a Fire Safety License, then you may be required to obtain it through fire safety inspection.

2. GST Registration: If your business satisfies the GST registration threshold or if it falls under the mandatory registration category then  GST registration may be required for your business.

3. Liquor licence: If your business serves alcohol, then you may be required to obtain the licence to store and serve alcohol from the excise department.

4. Miscellaneous Licences: Your business may be required to obtain other licences as well such as Health Trade Licence, if applicable.

Costs Involved

The government fees for FSSAI licence depend on the category of registration, for basic registration the fee is merely Rs. 100 per year. For a State Licence, the fee may be between Rs. 2000 to 5000 per year depending on your state. For Central Licence, the fee is Rs. 7500 per year. Moreover, these fees are subject to other taxes as well and may be revised. The cost involved may increase if other mentioned registrations are also required for your business. Other than these costs you may also be required to pay the professional fee if you opt for professional assistance in these processes.

Professional assistance definitely adds some more cost but is always advised because they have expertise in these fields and will make the process seamless and bring you success in one go. At RegsiterKaro we understand your aspiration to take your business online and make your cut in this booming market. That’s why we offer expert registration services for your business so that you can focus on your business while we take care of legal requirements. We have a team of expert professionals including CAs, CAs and Lawyers, who have years of experience in these processes, who will ensure you get the best for your business.