Are you starting a Bakery business? Do you have all the necessary licenses and permits in place?
Many new bakery owners often tend to skip the legal aspects of their bakery business and focus only on setting up the business and the other technicalities. This can often result in a messy situation when the local licensing commissioner or health officials make a surprise visit to your shop and find that you don’t have any necessary licenses obtained. Instead of getting caught up in this legal mess, I am sure you would like to know about the essential licenses that you need to obtain prior to opening your bakery shop. This will not only allow you to stay far away from getting charged with penalties but will also ensure a smooth operating of your bakery business.
Well, worry not because we have made a list of all the essential registrations and licenses that you need to secure before opening your bakery to the customers. Most of these licenses are easy to procure and you can get it over within just a month.
Licenses and Registrations Required to Open a New Bakery
Here is a list of the significant licenses that you need to procure before commencing your bakery business.
1. FSSAI License, aka Food License
Anytime you start a new food business, the first thing that you need to get is the Food License from Food Safety and Standards Authority of India (FSSAI). Food license is often known as FSSAI license too and actually acts as an approval from the authority to serve food in your shop. This license will inform your customer that the items prepared at your bakery shop are safe to eat and conform to the food standards of India. It is a special 14-digit number which is provided to food business owners to be added to their food packaging so that your customers know that they are eating at the right bakery which follows all the safety standards. Make sure that you definitely print this 14-digit registration number on all your food packages. This will not only help you in staying on the right side of the legal activities but will also help you in luring more customers to your bakery.
#How to Get it
To get the FSSAI license, you need to fill an application form and submit your documents along with a fee of roughly around Rs. 2000 each year to maintain the license. You will need to submit the following documents to get your FSSAI application approved:
- Your Id and Address Proof
- Your valid Email address
- Your Phone Number
- Medical certificates of your employees
- Blueprint of your Kitchen
- Food Safety Management Plan
- List of Foods being served
- Water Testing Report (Approved by ISI Facility)
- NOC from the Business Owner or Partner
Once you have gathered all these necessary documents, you just need to go to the www.foodlicensing.fssai.gov.in to register for a new account. Once you have successfully registered, you will need to use your user Id and password to log in. After you log in to the FSSAI website, you will need to fill out the application form for getting the food license and fill your document details too. Once the form is completed, you have to take a printout and then submit it to your Regional/State Authority along with the mentioned documents. This needs to be done within 15 days of the online submission so that your application doesn’t expire.
Once it is all done, you can expect to get your Food license in maximum 30 – 60 days of the submission.
2. Health Trade License
Apart from getting the Food license, you will also need to procure the Health Trade License so as to show that your bakery is safe and healthy and poses no health threat to your consumers. This is an important license under the Municipal Corporation Act of 1957 and failing to do so will result in legal consequences and shutting down of your bakery store.
The Health Trade License states that a food store is safe and hygienic and isn’t likely to cause any health problems to the public who trade from the place. You can get this license from Delhi’s civil authorities like the Health Department or maybe the Municipal Corporation.
#How to Get it
Getting a Health Trade License is quite easy and straightforward and one can apply either online for it or from a CSB (Citizen Service’s Bureau). It will cost you approximately in a range of Rs. 500 – Rs. 50,000 and will take around 60 days or less for the whole process to be complete. You will need to get the application form for the Health Trade License from the Zonal CSB or from the Municipal Corporation and fill it out while providing the supporting documents for it. Once you submit the form, you are likely to get your license within 60 days which might also include some kind of inspection by the government officials. To get this license, you will need to provide the following documents along with the application form:
- Bakery Shop Ownership Proofs i.e. Shop lease deal, rental agreements, NOC from the landlord, etc.
- Indemnity Bond
- Electricity Bill and Water Bill of Bakery Shop
- Water Testing Reports
- Xerox of Bakery Shop Layout and Plan (3 Xerox)
- Structural Stability Certificate
- Proof of Sewer Connection
- Medical Certificate for Bakery Employees
- Property Tax
- Medical Fitness Certificate
Make sure that you properly submit all the documents and apply for the Health Trade license on time. If you don’t get the license, then the Municipal Corporations can even shut down your bakery and you would take another 2-3 month to get it reopened now.
3. GST Registration
Since the GST has been introduced in India, business owners also have to register their shop for GST to be compliant with the government rules. If you are opening a bakery then make sure that the first thing that you do is to register your business for GST for a smooth operation. If you avoid doing that then you might get visited by the Income Tax officers and heavily fined for not following the tax process.
#How to Get it
If you are opening a bakery business then GST would be helpful in doing your billing and business and due to its simple process, it won’t take up a lot of your time too. To get your company GST registered, you will need to simply fill out the basic documents and forms on the GST website (www.gst.gov.in). You will also need to submit the following list of documents along with your application form to get GST registered:
- Xerox of Pan Card of Business Owner/Proprietary/Partnership Firm.
- Xerox of the Shop leave or Rental Agreement
- Xerox of Id and Address Proof of all the Partners
- 1 Photograph of all the Partners
- Xerox of the Partnership Deed
- Email Address and Phone Number of all the Partners
- Recent Bank Statement with full name, address, and transaction details
- List of Products to be merchandised (Counter Service)
- List of Products to be created/merchandised
- Digital Signature of all the Authorized Partners
- Authority Letter in favor of the Business Owner
It might feel a little overwhelming to register your bakery shop for GST and make the most use of it but there are several channels and websites which are trying to help the users in understanding GST. So, try to garner more information about GST before opening a bakery and see the legal process and implications of opening a business before you move forward.
4. NOC for Fire
One of the most important thing that you will need to acquire is a No Objection Certificate from the Fire Department for your bakery shop. The Indian government is quite strict about the food shops maintaining a fire safe zone for their customer and anyone who doesn’t comply with this might face permanent shut down of their food business.
So, if you don’t want to face this issue, make sure you contact the Fire Department to get the NOC and operate your bakery smoothly and carefully. The NOC from the fire department will state that your bakery has all the measures in place to protect the customers from injurious food products and fire hazard.
#How to Get it
Getting a NOC from the Fire Department is actually quite straightforward and barely takes any time. If you are not renting a place and are actually building a bakery shop from scratch then you will need to register at the Fire Department before the construction and get the NOC. In case, you are renting a bakery store then you will need to get the NOC from Fire Department before you start operating your bakery store. Since you can find the application form online on the state government’s site, the entire process has become a cakewalk. Also, there is actually no fee associated with the NOC so you just need to submit the form online and ask the Chief Fire Officer to inspect your bakery store to get the NOC.
5. Eating House License
Another essential license that most food businesses need is an Eating House License. Although, for a bakery business it actually depends on the style of a bakery that you are planning to open. If you want an Eating House space in your bakery shop then you will need to get it else you can simply skip it. This license is provided by the Licensing Police Commissioner and is specific to the city. So, if you are opening a bakery in Delhi then the Licensing Police Commission of Delhi will give you the Eating House License.
You will get the Eating House License at a cheap cost of Rs. 300 for around three years so you don’t have anything to worry about really.
#How to Get it
In order to procure the Eating House License, you will first need to register at a website which helps customers in getting the Eating House License. Once you have a user Id and password, you can utilize it to log in and then fill up the form to get the Eating House license. After filling the form, attaching the necessary documents, and choosing an appointment date, you can submit the application form.
Then, take a Xerox of all the documents mentioned in the application and self-attest it for verification. Make sure that you have the following documents with you if you wish to get the Eating House License for your bakery.
- Document for Ownership Proof of the Eating House Area i.e. Rental Agreement, NOC from Landlord, Shop lease, etc.
- Bakery Shop Plan with the Eating House area details
- Multiple photographs of the Bakery Shop displaying the Eating House space
- Residence Proof of the Business Owner
- Xerox of the NDMC/DCB/MCD/Airport Authority on India trade license along with fee receipt
- Fire NOC
- Affidavit on Rs. 10 stamp paper, attested by Notary Public
- Undertaking in respect to the installation of CCTV cameras which should have a recording facility of 30 days
- Undertaking regarding amusement activities like games, music, etc.
6. Shops and Establishment Act License
Once you have all the above-mentioned licenses and registrations in place, you will also need to get your bakery business registered under the Shops and Establishment Act, 1957. You will need to get your bakery shop registered 30 days before you open the bakery and get the license for the city where you are opening the bakery. The complete cost of this license will depend on the location of your bakery store and the number of staff members that you have hired and can often fluctuate between Rs. 200 – Rs. 4000.
#How to Get it
Getting your business registered under the Shops and Establishment Act is quite simple and doesn’t require a lot of documents too. You will just need to submit your Pan card details, Photo ID Proofs, Address Proofs of you and your partner and the complete information of your employees. Once you have these documents ready, you can submit them with the application form for this license along with the complete details of your bakery shop. This will include your bakery shop name, the valid address of your bakery shop, ownership proofs of your bakery shop, etc. If you don’t own the bakery shop then you can simply show the Rental Agreement or NOC from the landlord but if you do own the bakery then the Shop Lease will work fine. You will need to submit all these documents, forms, bakery details, etc. to the Local Chief Inspector or the other inspectors. Then, the government officials will verify your documents and if everything looks good then they will register your bakery’s name in the Register of Establishment. You will be issued a certificate as well which you have to display in your bakery at all times. The entire process will take approximately just 7-10 days and won’t require too much effort from your side.
Once the license is issued, you can make the changes within 15 days of the issue by informing the inspector who will then make the changes in the register and issue you a new registration certificate. When you are closing the bakery shop, you will again need to inform the local inspector so that they can update the register accordingly and revoke your certification.
7. Music and Signage License
Lastly, you might need to get the music license and the signage license for your bakery shop if you are planning to play music and market your bakery shop. According to the Copyright Act(1957), any non-private place or a commercial company will need to get the music license from the Phonographic Performance Limited (PPL) if they want to play CDs, Cassettes, Records, etc. at their place.
If you don’t get the music license and still play pre-recorded music then you will have to face the legal consequences of your actions and might end up paying a huge penalty fee
Then, you have the Signage license which allows you to market and promote your bakery with the help of posters, photographs, etc. This can be easily obtained by the local civil authorities including the state municipal corporations.
So, now that you have more idea of the various licenses and registrations that you need, you better start working to procure them in order to successfully open and operate your bakery shop.