The age of online marketplaces.
In today’s world, to start a business in an e-commerce industry will prove to be a successful venture. The accessibility of all the items in an online space is increasing at a great speed. E-commerce is gaining momentum. All of a sudden, consumers have started relying on online marketplaces for fulfilling their needs for everything starting from clothes to electronics and everything in between.
Giving into the online trend, the food delivery system made it easier for the consumers to order whatever they want from any restaurant they want while at home. Zomato, Swiggy, FoodPanda, UberEats are some of the pioneers and game changers in the food delivery business. This trend has already taken over the urban and semi-urban areas and is slowly taking over the entire country, one city at a time.
The FSSAI guidelines
It is required to get the Food Safety and Standards Authority of India to start a business of any kind, including the food-related business in the country. It is mainly done to ensure that the quality of the food is up to the mark and the food that is delivered is safe for the customers. A well-trained staff and hygienic working spaces standards must also be adhered to.
For starting an online delivery system, it is very important to obtain a GST license as well as an MSME license.
What are the licenses that are to be acquired to start a business in the food delivery industry?
For an online food delivery marketplace in India, it is mandatory to comply with the registrations listed below :
- To start a business, the business should be registered as a sole proprietor firm, partnership firms, LLP, one person company or a private limited company.
- For all the E-commerce businesses, a GST registration is mandatory.
- A Memorandum of Understanding or an agreement has to be signed with every seller and manufacturer stating that the products are adhering to the FSSAI standards, rules and regulations and the FSSAI license number should be clearly stated therein.
- A Vendors Agreement has to be signed with each supplier. The terms and conditions of trade and any other relevant terms applicable must be stated therein.
- To restrict the liability of the website or the application used, a list of terms and conditions should be drafted.
- User agreements and data privacy agreements are to be drafted.
- A food license from FSSAI needs to be obtained.
- A GST and an MSME license have to be obtained.
FSSAI Guidelines concerning food delivery businesses.
According to the guidelines issued by FSSAI in 2017,
- All the food delivery platforms are defined as Food Business Operators (FOBs) under schedule 1 of the FSSAI regulations, 2011.
- It is mandatory for all the FOBs to get a central license from the Central Licensing Authority.
- Such a license has to be obtained for the entire supply chain.
- The license also includes the head office of the Food Business Operators.
- Manufacturers, distribution units, transporters, and storage units are also included.
It is no doubt that all the food delivery businesses which don’t adhere to the guidelines put forth by the FSSAI will have their business shut down immediately. It is absolutely mandatory to comply with the said guidelines and non-compliance will lead to immediate closure of the business. Adhering to the GST and MSME rules and regulations is also mandatory.
The Food Safety and Standards Authority of India (FSSAI) has directed leading food delivery services including Zomato, Swiggy, and UberEats to de-list all restaurants and eateries that do not have an FSSAI license or registration.
This move was taken after receiving a series of complaints about the standards and the quality of food. The customers complained that the food received was inadequate and not satisfactory.
To tackle the said problem, 10 online delivery platforms have been ordered to de-bar the restaurants which are unregistered and don’t follow the FSSAI guidelines. The platforms are:
The FSSAI has also come up with a new set of guidelines for the e-commerce food services platform in February. According to these guidelines, it is mandatory for the FOBs to display the FSSAI license number of the restaurants listed on their platform.
GST and MSME registration
In order to start any business in India, it is important to have a GST registration in compliance with the CGST Act, 2017. This act regulates the payment of GST tax, the amount, the time period and everything that comes with it.
MSME stands for Micro, Small and Medium Enterprises. After the start of the business, it is important to register your startup under this forum.
At CompanyVakil, all you registrations that are needed to start a business are taken care of by experts. We take care of all your registration, right from the company registration to GST and MSME registrations. Our experts can make the process quick, easy and hassle-free.