Cloud kitchens and legal compliance

Before starting any kind of food business, the owner needs to issue some important licenses to run their businesses legally. These licenses certify their brands that they are obeying the rules and regulations imposed by various departments of Food security, government bodies, and police.

It is always recommended to issue the license before starting to run the kitchen in order to not pay any kind of penalty when the legal authorities do a check-up.

FSSAI

1. It ensures the security of food products (It ensures the food delivered/served from a particular kitchen follows the guidelines of the food safety standards)
2. It is mandatory to be issued to start any kind of food business.
3. It has a tenure of 1–5 years and can be renewed.
4. It consists of a unique 14-digit registration number.
5. Can be applied by filling up the application through https://foodlicensing.fssai.gov.in
6. Documents required — Id Proof, Address Proof, Kitchen Layout plan, affidavit, NOC from the owner, Declaration of food safety management plan, List of food category.
7. License registration fee — Rs. 100/-

Goods Service Tax(GST)

a. GST registration is mandatory for a cloud kitchen.

b. 5% is the GST charge for a food business.

c. It is issued on behalf of your brand.

d. It is applied by filling in necessary details in www.gst.gov.in

e. Documents required — photo of the owner, ownership details(electricity bill, property tax receipt), copy of the rental agreement(if rented space), details of the bank

f. License registration fee — Free

Trade license

a. It helps in ensuring that no unethical business practices are being carried out and all the guidelines are being followed by the kitchen.

b. Govt. has made this license a necessity for all businesses.

c. Eligibility — the applicant should be above 18 years, no criminal records,

d. It takes 7–10 days for the license to get processed.

e. Validity — 1-year

f. The license can be applied by visiting the respective state’s municipal corporation website.

g. Documents required — Aadhar Card, Property Tax Payment Receipt, a letter from the owner of the property, Sanction(Rent agreement/NOC from landlord)

h. License registration fee — Rs. 5000/-

Fire & Safety License

1. It is not mandatory for business but is recommended by the Fire and Safety Dept.
2. It adheres that the kitchen is following the safety rules and regulations.
3. Validity — 5 years
4. Can be issued from the fire station or department of a particular state.
5. Documents required — Copy of site plan, site agreement, and license(if any)
6. License registration fee — Free

Shop Establishment Act

1. To run a food business in India, one must register its kitchen under this act.
2. Registration should be done within 30 days from the business initiation.
3. License varies from city to city.
4. Can be applied in https://www.hubco.in/shop-and-establishment-registration
5. Documents required — Pan card, Aadhar card, address proof, details of employees.
6. Validity — 5 year
7. License registration fee — Rs. 2000/-

I hope this article helps you understand the legal compliances that need to be done before running a cloud kitchen. All the legalities can be done on vakilsearch.com under professionals.

Thank You!