A lot of people have recently started to get into the food business and have started opening bakery shops, restaurants, etc. However, many of the new business owners are still not aware of the legalities involved with opening a new food business and often become a victim of some legal spots which they find difficult to maneuver. Like every other business in the world, food business also requires you to obtain some necessary licenses and registrations before opening up your place. If you happen to neglect or avoid it then you might have to face some legal consequences for it.
It is quite understandable that as a new business owner, you might not be aware of all these licenses that are required to open a bakery shop. Don’t worry, we are here to change that.
In this article, we have listed down all the important licenses and registrations that you need to obtain prior to inaugurating your bakery business for a smooth and completely legal operation. So, make sure that you get all the licenses in time to start your bakery business soon.
Important Licenses to Acquire before Opening your Bakery
We have listed the list of crucial licenses that you need to get to open and run a bakery.
1. Food License
One of the most crucial licenses that one must get is the Food license i.e. the FSSAI license in order to open their bakery business. The Food license can be acquired from the Food Safety and Standards Authority of India by applying online. This license will confirm that the food prepared in your bakery store conforms to the food standards of India and is safe for consumption. This is not just a license, it is an approval from the authority to serve food to the consumers and also acts as an insurance to the customers that the food at your bakery is safe to consume.
The FSSAI license is actually a 14 figure registration number which is specified to the traders and food shops and is supposed to be displayed on the food packages. This will confirm to the customers that your food package adheres to the safety standards of FSSAI which can be a great way to attract more customers to your establishment.
Documents that you will need to obtain Food License for your Bakery
You need to get the following documents at the earliest so that you can apply for the FSSAI license.
- A valid Email Id of the Applicant
- Phone Number (where you can be reached)
- Id Proof of the Applicant
- Address Proof of the Applicant
- List of Food Category
- NOC (No Objection Certificate) from your partner or the owner
- Water Testing Reports (should be approved by the ISI Facility)
- Layout Plan of your Kitchen
- Food Safety Management Plan for your Bakery
- Medical Certificates (of all the employees of your bakery)
Steps to follow to obtain a Food License for your Bakery
Once all the required documents are gathered, you are all ready to register for the FSSAI license. It will cost you somewhere around 2000 INR for every year and you will need to renew it every year in order to be compliant with food safety. To apply for the food license, you will need to navigate to the FSSAI website and then register for a new account. Create a username and password for yourself and complete the entire Sign-Up process appropriately. Once you have your user ID, use it to log in and then enter the complete details into the application form. Make sure that you fill the form without any mistakes along with the required documents. Once it is done, you will need to print the completed application form and then submit it to the State/Regional Authority with the supporting documents.
One important thing to remember is that make sure you submit the printouts to the Authority within 15 days of application submission to ensure that your application form is considered by the officials. Once the officials verify the information and do a little routine check, you will receive the Food license which you will need to display in your bakery packaging and shop.
2. GST Registration
The next thing that you need to do is register your bakery for GST in order to be compliant and to avoid paying unnecessary taxes. GST Registration is comparatively a new additional process which everyone who owns a Food truck or a food store needs to complete if they want to avoid the legal complications. The process of getting your bakery in the GST Registration is quite simple and easy and would barely take your time.
Documents that you will need for the GST Registration of your Bakery
Here is a list of documents that you will require to acquire the GST Registration for your bakery business.
- PAN of the Applicant or the Business (Bakery company, in this case)
- Address and ID Proof of the Owner or Partner along with the photographs
- Proof of Business Registration (In case you have a Partnership Firm in place)
- Bank Account Details (Should display full name, address, and few transactions made from the account)
- List of items going to be Traded (In case you have a Bakery Counter Service)
- List of items going to be traded/created
- Digital Signature of the Authorized Owners
- Address Proof for the Bakery Location
- Copy of Registered Lease Deed (For Ownership proof)
- Electricity Bill
- Property Tax Receipt
- Rental Agreement Copy (For Rent proof)
- Affidavit for Bakery Space (If there is no rental agreement available)
- Certificate by the Indian government (For Special Economic Zone, SEZ)
Steps to follow to obtain the GST Registration of your Bakery
If you have all the documents in place, then you can go ahead with and apply for the GST Registration by completing the online form at www.gst.gov.in. Once you register for GST, it becomes easy for you to do your own billing too. Although the whole GST process is still confusing and a lot of food businesses are worried about further changes but GST is certainly a great way to handle taxation. This is why it is important that you register your bakery for the GST as soon as possible.
3. Health Trade License
Another important license that every food business needs to get is the Health Trade License which comes under the 11th schedule of India’s Municipal Corporation Act of 1957. This license states that the concerned food store ensures public safety and health and doesn’t employ anything which might be seen as harmful to the consumer’s health. You can easily get this license by the Health Department or the Municipal Corporation of Delhi.
Documents that you will need to obtain the Health Trade License for your Bakery
Below is a list of documents that you need to present when applying for the Health Trade License for your bakery.
- Sanction for Bakery Space (Ownership proof or Rent Agreements/NOC from the landlord)
- 3 Duplicates of the Bakery Space Layout and Plan
- Indemnity Bond
- Structural Stability Certificate (duly signed by Structural Engineer)
- Power and Water Bill
- Evidence of Sewer Connection
- Plan of the Bakery Premise
- Water Testing Reports
- Evidence for Property Tax
- Medical Certificate (Of all the employees)
- Medical Fitness Certificate (Of all the workers)
- Lal Dora Certificate, if applicable for your Bakery space
Steps to follow to obtain the Health Trade License of your Bakery
After you have collated all the document, you can apply online or reach out to the Citizen Service’s Bureau for getting the Health Trade License for your bakery. The whole process is quite simple and will cost you somewhere around Rs. 500 – Rs. 50,000. You can find the application forms at the Zonal Citizen Service’s Bureau or at the website of Delhi’s Municipal Corporation. You will be issued the license within 60 days of submitting the application form if approved.
Make sure that you apply and get this license on time else Municipal Corporate will shut down your bakery and you won’t be able to open it without the due procedure.
4. No Objection Certificate from Fire Department
Every food store needs to ensure that their customers are well protected from injurious scenarios like fire hazards, food hazards, etc. As a result, every new food business owner needs to get a NOC (No Object Certificate) from the Fire Department. If you are found without a NOC for Fire then you can face some legal issues and might even be shut by the authorities. So, make sure you don’t skip out on this one and make your bakery safe and secure for users.
Steps to follow to obtain the No Object Certificate (NOC) from Fire Department of your Bakery
For your bakery, you will need to get a NOC from the Fire department before you start the construction or start operating the place. You can easily find the application forms on the Delhi government website and fill it out to proceed with the process. Once you have submitted the application, you will need to set an inspection date with the Chief Fire Officer to check out your bakery space. Make sure that you have the necessary safety equipment in place before you proceed with this. Once the inspection is complete, you will get the NOC from them which you can then display in your bakery shop.
5. Shop and Establishment Act
Apart from the GST Registration, you also need to get your food business registered under the Shops and Establishment Act. This stays true for a food truck, bakery store, counter service, and so on. So, you need to register your bakery space within 30 days of the start of your bakery business. You will have to pay an approximate value of Rs. 200 to Rs. 4,000 for every year which will actually vary depending on the number of employees that you have hired and the location of your bakery.
Documents that you will need to obtain Shops and Establishment Act License for your Bakery
Here is a list of important documents that you will need to provide for getting the license.
- Pan Card of Business Owner
- Address Proof of Business Owner
- Details of Bakery’s employees
- Address proof of the Bakery or your partner
Steps to follow to obtain Shops and Establishment Act License for your Bakery
After gathering all the necessary documents, you will need to submit your application form for the Shops and Establishment Act license along with these documents. You will also need to provide the full name of your bakery shop, the address of the shop, and the ownership proof for your bakery site which includes shop lease papers, rental agreement, etc. You will need to submit this all together to the Delhi Chief Inspector or some other Inspector. Once your documents are verified carefully by the officials, the inspector will register your shop in the Register of Establishment and issue a certification for your use. It will barely take 7-10 days to get this license which you will then need to display in your bakery shop explicitly. Make sure that you renew the license prior to its expiration date.
In case there are any changes to be made in the provided information then you will need to contact the inspector within 15 days so that he can rectify the information in the register and get you a fresh certificate. Also, you will need to inform the inspector again when you are closing the bakery shop, within 15 days from the date of closure.
6. Eating House License
You will also need to get the Eating House License from the Licensing Police Commissioner of Delhi if you want to have a seating section for your customers. It would cost your roughly around Rs. 300 for this license for 3 years and will allow you to put aside sufficient space for your customers to sit and enjoy their desserts.
Documents that you will need to obtain Eating House License for your Bakery
In order to acquire the Eating House License, you will need to gather the following documents:
- Site Layout of your Bakery along with the Eating House arrangement
- Photographs of the Eating House area in your Bakery
- Ownership Proof for the Eating House site (Rental Agreements or NOC from the Landlord)
- Address Proof of the Bakery Owner
- Fire NOC (if you are going to seat more than 50 people)
- Affidavit stamped on Rs.10, signed by the Notary public
- Duplicate of the valid DCB/MCD/ NMDB/Airport Authority of India trade license along with their receipts
- Undertaking for installing CCTV cameras with 30 days recording feature
- Undertaking with regards to music, games, and other entertainment activities
Steps to follow to obtain an Eating House License for your Bakery
Before you apply for the Eating House License, you will need to register yourself at the website and obtain a user ID and password for yourself. Once that is done, you will need to fill the form, upload all your essential documents, and set an appointment with the Delhi’s Licensing Police Commissioner.
Make sure that you self-attest all the documents that you will be attaching to your application form so that you can successfully get your license processed.
7. Signage License
Apart from the above-mentioned licenses and certificates, you will also need to get the Signage license if you want to market your bakery properly. This license will allow you to spread the word about your bakery through pamphlets, posters, pictures, etc. and if you neglect to get this license, then you could end up in deep trouble later on. You can easily get this license from the Local Municipal Corporation.
8. Music License
A lot of bakeries form a nice and soothing environment for their customers by playing music in the bakery shop but what a lot of new bakery owners don’t realize is that this needs a special type of license too. According to the Copyright Act of 1957, you need to get the music license from Phonographic Performance Limited (PPL) to play pre-recorded music in a commercial space. If you ignore this rule and play music without a license, then you will face legal penalties in the future.
Now you have more knowledge about the necessary licenses that you need to open a bakery in Delhi and how you can get them. So, make sure that you don’t skip out on any of these licenses and avoid getting roped into some legal issues. Hope you are able to start and run a successful bakery business in no time at all!