Are you planning to start a cloud kitchen in India? But confuse how and where to start? however starting a new business is not a piece of cake for everyone, you must have a clear mindset on the concept of the cloud kitchen business model.
Along with the selection of the right location for cloud kitchen, marketing, budgeting, and all, you’ll need to invest an amount of time in gathering legal licenses required to start a cloud kitchen in India.
Getting the right license will save you from many legal difficulties, also it gives customers a sense of security, safety & satisfaction. You can promote these on your website and in your marketing campaigns to convince your customers that you prepare high-quality food and providing safe online food delivery.
Here’s a list of important license required to open cloud kitchen –
1. FSSAI Food Safety And Standards Authority License (Mandatory)
The FSSAI license, also known as the Food License, is one of the requisite licenses to open a restaurant and is collected from the FSSAI (Food Safety and Standard Authority Of India). This license is not only a license, but It ensures the customers that the food of that particular outlet follows the guidelines of the food safety standards of India.
This license is necessarily a unique 14 digit registration number, it’s mandatory for food-related business in India. The license period can range from 1 year to 5 years and must be renewed before expiry.
Documents Required For The FSSAI License
1. Id Proof and Address Proof
2. Valid Email Id
3. Phone Number
5. Declaration Of Food Safety Management Plan
6. Kitchen Layout Plan
7. List Of Food Category
8. Water Testing Report from ISI approved Facility
9. No Objection Certificate (NOC) from the owner or the partner
10. Medical Certificates of Employees
How to apply for FSSAI?
Gather all the documents & process the application by login to the FSSAI website, fill up the online application with all the required documents. Submit the printout of the filled up online application form to the Regional/State Authority with all the supportive documents within 15 days from the date of making the online submission, to ensure that your application is considered.
2. GST Registration (Mandatory)
GST came into force since the 1st of July, 2017, registering in GST is one of the essential steps to starting a dark kitchen, which will ensure that your business runs seamlessly.
It also helps to secure licensed vendors, as it reduces the tax amount if have a GST number. Upon obtaining a bank account, we will apply for a GST number.
The process of GST registration is simple wherein an Individual, any Partnership firm or Company can get number by filing necessary documents online at www.gst.gov.in.
Documents Required For The GST Registration
Photo of the restaurant owner/proprietor
Picture of Managing partner/designated partner in case of a partnership
1. If you own the property, then ownership documents like electricity bill, tax receipt/property tax receipt, or registry documents of that place.
2. If you are on rent, then copy of the rent agreement/lease agreement with electricity bill in the name of the owner.
3. Suppose, you neither own the property nor on rent, then submit electricity bill along with the copy of NOC (No Objection Certificate)
Documents that are required related to bank bare-Scanned copy of bank statement/bank passbook or scan copy of canceled cheque containing Name, bank account no., MICR, IFSC, and Branch details including code.
3. Health/ Trade Licence (Mandatory)
Every business is required to possess this license and so does the cloud kitchen. This license can be obtained by the local civil authorities like the State’s Municipal Corporation or the Health Department by furnishing all necessary documents. According to the Municipal corporation act, the public’s health should be given the highest concern.
Document Required to obtain Trade Licence
1. Sanction and Completion (Includes Ownership proof, Rent Agreement or NOC from landlord)
2. Indemnity bond for Rs. 100
3. Letter from local police
4. Structural Stability Certificate signed by Structural Engineer
5. Power and Water paid Bill
6. Water Testing Reports
7. Medical Certificates of Employees
8. Proof of Property Tax
9. Lal Dora Certificate (Only in Delhi)
10. Medical Fitness Certificate of Workers
How to apply for Trade License
One can apply for Health/Trade License either at CSB or apply online. Simply collect the application form from the State’s Municipal Corporation website or Zonal Citizen’s Service Bureaus. Generally, The license is issued within 60 days of submitting the application form.
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4. Fire and Safety License
For Cloud kitchen, it’s not mandatory to start with, but it helps to save yourself from future troubles. This is an important part of the law, and fire and human health agreements are required for any workplace.
5. Shop And Establishment Act
Be it a Food Truck, cloud kitchen, or a restaurant, To run a food business in India, you must register your restaurant under the Shops and Establishment Act. One needs to register the kitchen within 30 days of the initiation of your business. This license is city-specific.
Documents Required For The Shop And Establishment Act License
Details of the employees
How to Apply for The Shop And Establishment Act License
When you have gathered all the documents mentioned above, submit these with the application form. Your form should indicate the name of the shop, the postal address, and the proof of ownership, such as the Rent Agreement or Lease Papers in front of the Local Chief Inspector of the shop or other Inspectors. Once the government officials verify all the documents, they register the Establishment and issues a registration certificate.
The main licenses to start a cloud kitchen are FSSAI, Shop & Establishment, GST Registration, Fire Department NOC, etc. Make sure you have these before starting a dark kitchen business. Other can be Pollution certificate, Certificate of Environmental Clearance (CEC), PFA Act Clearance Certificate, Night Operations License, etc. Make sure to get all the main licenses on time because it takes a long process and it is important to possess the required license to save from legal difficulties.