Legal Procedures to Start a Small Scale Food Factory in India
Introduction
Welcome to the guide for starting a small-scale food factory in India, one of the most profitable sectors in the country. This article will walk you through the essential legal procedures and regulatory requirements to ensure that your food business is compliant and sails smoothly. Whether you are an aspiring entrepreneur or an established SME, understanding these steps is crucial before you hit the market.
Registering Your Food Business with MCA
1. Registering Your Food Business with MCA
The Ministry of Corporate Affairs (MCA) oversees the registration of companies in India. If your food factory plans to operate as a company, you must first register with the MCA. The process involves several key steps:
Setting Up a Business Name: Choose a unique business name that complies with MCA guidelines. Filing of Articles of Association: Prepare the articles of association that outline the rules of your company. Appointing Directors: Appoint at least one director, who must be a resident of India. Filing of Form INC-1: File this form electronically with the MCA, along with the relevant documents. Obtaining a Digital Signature: Ensure you have a digital signature to digitally sign the required documents.Obtaining Trade License
2. Obtaining a Trade License
A trade license is essential to operate a small-scale food factory. Here’s how you can get it:
Select the Appropriate Authority: Depending on your location, the authority could be the local municipal corporation or the state government. Prepare the Application: Fill out the application form and attach all the necessary documents, such as the IHFAL (Ilaali Haqeequi Farabiwali Liwaz) registration, if you plan to sell food items. Submit the Application: Submit the application in person or through an authorized agent. Wait for Approval: The license is usually granted within a few weeks. Ensure you comply with all conditions mentioned in the license.Obtaining Food License (FSSAI License)
3. Obtaining a Food License (FSSAI License)
The Food Safety and Standards Authority of India (FSSAI) oversees the production and distribution of food products. You must secure a food license to comply with the following steps:
Understand the FSSAI Regulations: Familiarize yourself with the Food Safety and Standards (General Food Products) Regulations, 2011. Genre Classification: Determine if you need to be categorized as either an Only Manufacturer, Manufacturer-Wholesaler-Distributor, or a Retailer. Get the Required Grade: Ensure your food factory meets the minimum requirements, such as having a minimum turnover of ?10 lakhs. Submit the Application: Fill out an online form and attach all necessary documents, such as the layout plan of your food factory, the food processing/handling procedure, and the list of food products to be manufactured. Wait for the License: The process can take a few weeks to a few months. Ensure you follow all the steps diligently to avoid delays.Securing Factory License
4. Securing a Factory License
If your food factory involves the manufacture of goods, you must also obtain a factory license from the concerned government authority. The following steps can help you secure this license:
Perform a Hazard Assessment: Identify potential hazards in your food factory and develop preventive measures. Prepare the Application: Fill out the application form, attach the meticulously prepared plan of the factory, and any other relevant documents. Submit the Application: The process usually involves submitting the application with the required documents to the local factory inspectorate. Inspection and Location Approval: An inspector will visit the location to ensure it meets safety and operational standards. Once approved, the license will be granted.Shops and Establishments Registration
5. Registering Under Shops and Establishments Act
If your food factory is located in a commercial area where you sell food items, you must register under the Shops and Establishments Act. Here’s how to do it:
Understand the Act: Familiarize yourself with the Act, which regulates the establishment of shops and establishments. Prepare the Application: Submit an application to the local authority, along with necessary documents such as the shop layout, a certificate of occupancy, and a true photograph of the signage. Get the Registration: Follow all the necessary steps and ensure you comply with the terms and conditions.Compliance and Professional Tax Registration
6. Professional Tax Registration
In certain states of India, a food factory owner may be required to register for professional tax. The registration process is as follows:
Understand the Taxation Laws: Research the professional tax laws applicable in your state or region. Register with the Relevant Authority: Fill out the required forms and submit them along with the necessary documents to the tax department. Pay the Professional Tax: Follow the money payment process, which varies across states.Conclusion
Starting a small-scale food factory in India is a significant venture, but with the right guidance and compliance, you can navigate the necessary legal procedures smoothly. We at are here to simplify the process for you, providing seamless and convenient services. Visit our site for more information and assistance.