List of Licenses Required to Open a Bakery and How to get them

Planning to start a bakery business? Well done! However, remember that starting a new bakery is no cakewalk and actually requires a lot of planning and brainstorming sessions. You will need to find the right location, hire a diligent and trustworthy staff, promote your bakery properly, but that’s not all. You will also need to get the right licenses for your bakery business if you don’t want to end up in a legal mess once you have opened your bakery.

This is why it is important that you take care of all the legal formalities beforehand and only once you have all the necessary permits with you, open your bakery shop to the customers. Not sure what and how you can obtain these licenses?

Don’t worry, we understand your pain and so we have compiled a list of licenses that you might need in India to start your own bakery. Read on to know more about these licenses and how you can get them.

Licenses Required to Open a Bakery in India

Here is a list of the essential licenses that are needed to open and operate a bakery legally in India:

1. Food Safety and Standards Authority License

The Food License, aka FSSAI license, is one of the most prominent licenses needed to open a food business like a bakery shop and can be obtained from the Food Safety and Standards Authority of India (FSSAI). This license basically provides you approval from the authority to sell your food and informs the customers that the food served from your bakery is safe and healthy to consume. This basically means that the food baked at your bakery attests to India’s food safety standards. The Food license is a 14-digit registration number which is provided to the traders, manufacturers, and food business owners which needs to be compulsorily printed on the food packages. This helps your customers know that they are eating at the right bakery which properly follows all the food safety standards.

=> Documents Needed for the Food License

In order to get the Food license, you need to prepare the following list of documents so that you can submit it for the FSSAI license.

  • Working Email Id
  • Personal Phone Number
  • ID Proof
  • Address Proof
  • Affidavit
  • List of Food Category
  • Declaration of Food Safety Management Plan
  • Kitchen Layout
  • ISI approved Water Test Report
  • NOC from the Bakery Owner or your Partner
  • Medical Certificates of the Staff

=> How to Get the FSSAI license for your Bakery

Once you obtain all the necessary documents as mentioned above, then you can simply apply for the food license and pay the fee of approximately around Rs. 2000 per year. Don’t worry, if you don’t want to pay every year separately then you can get a 5-year food license without having to pay the renewal fees. The entire application process for getting the FSSAI license is quite simple and straightforward. You just need to log in to the FSSAI website, create a username and password for yourself and finish the sign-up process. Once that’s done, you will need to sign in to your newly created account, complete the online food license application form along with all the necessary documents.

Once done, you will then need to take a printout of this completed application form to your Regional/State Authority along with the supporting documents as early as possible. Make sure that you submit it within 15 days from the date of your online submission if you want your food license application to be considered by the authority.

2. Health Trade License

According to India’s Municipal Corporation Act in 1957, the health of the consumers is of utmost importance which is why anyone who is trying to open a food business like a bakery needs to get the Health Trade License in order to proceed. You can get this license from your local civil authorities’ like the Health Department or the State’s Municipal Corporation.

=> Documents Needed for the Health Trade License

You will need the following list of documents to obtain the Health Trade License for your bakery.

  • Ownership Proof (Rent Agreement for the Bakery Place or the NOC from the Landlord of the Location)
  • Multiple Copies of the Bakery Site Layout (3)
  • Surety Bond
  • Paid Electricity and Water Bills
  • Structural Stability Certificate, attested by a Structural Engineer
  • Proof of Sewer Connection
  • Water Testing Reports
  • Plan of the Bakery Site
  • Medical Certificates of the Staff
  • Property Tax Proof
  • Lal Dora Certificate, if required
  • Medical Fitness Certificate of the Workers

=> How to Get the Health Trade license for your Bakery

Again, the application process of getting the Health Trade License for your Bakery is quite easy and simple and will cost you roughly around Rs. 500-50,000. You can apply for the Health Trade License either online or at the Citizen Service Bureau (CSB). You can get the necessary forms from the Zonal CSB or at State’s Municipal Corporation website. Once you submit the application form for the Health Trade License, you are likely to get the License in the next 60 days. If you don’t get this license, then the Municipal Corporation has the authority to shut down your bakery without so much as a pause, so make sure that you get this license before opening the bakery shop.

3. Shop and Establishment Act

Every food business in India must be registered under the Shops and Establishment Act, regardless of a dining bakery or a small Food truck. This registration needs to be completed within the 30 days of the start of your bakery business. This license will roughly cost you Rs. 200 to Rs. 4000 per year and is actually relative since it depends on the location of your bakery and the number of employees employed at your bakery.

=> Documents Needed for the Shop and Establishment Act License

You will need the following documents to register under the Shops and Establishment Act.

  • Pan Card of the Applicant
  • ID Proof of the Applicant
  • Address Proof of the Bakery Owner, Partner or the Shop
  • Details of the Bakery Employees

=> How to Get the Shop and Establishment Act license for your Bakery

Once you get all the required documents together, you will need to submit the documents along with the application form with the details of the bakery shop. This will include the name of the bakery shop, postal address of the bakery shop, and the ownership proof of the bakery shop (Rent agreement form or the Shop lease papers). You will need to submit all these documents and information to the Local Chief Inspector or the other Inspectors. If the verification is successful by the government officials then your bakery shop will be registered in the Register of Establishment and you will receive a registration certificate for the same. Make sure that you display with certificate explicitly at your bakery shop and always get it renewed before it gets expired.

It would take approximately 7-10 days to obtain this registration certificate and if there is any change in information, let the inspector know within 15 days so that he/she can make the required changes in the registered establishment. You will also receive a fresh registration certificate in this case. Another thing to keep in mind is that you need to inform the inspector about the closure of the bakery shop within 15 working days of the closure.

4. GST Registration

Although GST has come into play recently i.e. 1st July 2017, it has become an important part of any food business that is currently operational or is planning to be operational soon enough. So, if you want your bakery to run smoothly and without any illegal activity then you need to register your bakery in GST.

=> Documents Needed for the GST Registration

Here is a list of documents that will be needed to obtain the GST Registration for your bakery.

  • PAN details of the Bakery Business or the Applicant
  • ID and Address Proof of the Proprietary/Partnership Firms/Other Person in Charge of the Bakery along with Photographs
  • Proof of Business Registration, for Partnership Firms
  • Address Proof for the Bakery Place
    • For Own premises – Electricity bill, Property Tax Receipt, Copy of Registered Lease Deed, etc.
    • For Rented/Leased Premises – Rental Agreement Copy, Electricity Bill, Municipal Khata copy, etc. If no rental agreement is available then an affidavit for the same along with a copy of the electricity bill.
    • For Special Economic Zone premises – Necessary certificates by Government of India
  • Bank Account Statement displaying full name, address, and a few transactions
  • Digital Signature of Authorized Partners
  • List of Items to be Traded (For Counter Service)
  • List of Items to be traded/manufactured

=> How to Get the GST Registration for your Bakery

One of the best things about GST is that you don’t have to pay several smaller taxes for your food business and can pay it all in a single go in the form of GST tax. You can start the application process by simply completing the required documents online at the website www.gst.gov.in

Once you have applied, you will get the GST Registered in a few days and then you can open your bakery shop without worrying about any legalities.

5. Fire Department

Apart from all the important registration and licenses, No Objection Certificate (NOC) from the Fire Department is equally crucial to operating a bakery business. This certificate will showcase that your bakery has the necessary protective measures in place to protect the customers from injurious food products or fire hazards

=> How to get NOC (No Objection Certificate) from the Fire Department

To get the NOC, you will need to contact the State Fire Department before your bakery becomes operational. You will find the application form for this on the State Government website. There is no fee associated for getting the NOC from the Fire department but you will need to invite the Chief Fire Office for the inspection of your bakery once you have the necessary fire safety equipment in place.

Once the Chief Fire Officer inspects your bakery store and finds everything in order, you will receive a NOC from the Fire Department in the next few days.

6. Eating House License

If you want to have a seating area in your bakery shop and want to let people eat in your shop too then you definitely need the Eating House License. You can get this license from the Licensing Police Commissioner of Delhi when opening the bakery shop here. The rough estimate for getting this licenses will be around Rs. 300 for around three years.

=> Documents Needed for the License

Here is a list of required documents for getting the Eating House License for your bakery.

  • Documents to prove you own the Eating House site legally or a NOC from the landlord who rented you out the place
  • Site Plan of your Bakery which will include the Eating House size
  • Pictures of the Bakery depicting the Eating House usage
  • Residence Proof of the Bakery Owner
  • Fire NOC, if you have eating house’s seating capacity as 50 or more.
  • Photocopy of the valid DCB/MCD/NDMC/Airport Authority of India Trade license and their fee receipt
  • An affidavit on the stamp of Rs. 10, attested by the Notary Public
  • Undertaking with regard to the amusement activities, if any
  • Undertaking for the installation of the CCTV cameras which consists of 30 days recording facility

=> How to Get the Eating House license for your Bakery

Once you have the necessary documents in place, you will need to register yourself on a website for Eating House License. Once you register, you will receive a user Id and password which you can use to submit your application form. Use the mentioned user Id to fill up your application form, upload all the required documents, and get an appointment. You will need to carefully self-attest the copies of all the documents that you have uploaded to ensure proper validation.

You will need to meet with the Addl. Commission of Police Licensing in Delhi in the appointment and follow up with the government department on the update of your application. It will take around 45-60 days to get your Eating House License once you have submitted the application form.

Other Licenses that you Might be Interested In

Apart from the above-mentioned licenses for opening your bakery, you might also need to check out the following licenses for additional legal measures.

1. Music License

If you want to play music at your bakery to provide an entertaining and soothing environment to your customers, then you will need to obtain a license for this too. This is because of the Copyright Act of 1957 in which if a person wants to play a pre-recorded music in a commercial or non-private establishment then they need to get a music license issues by PPL, Phonographic Performance Limited. If you play music in your bakery without getting the music license then you might face legal penalties for the same.

2. Signage License

Every business needs to be marketed well in order to grow and expand so that you can get more profit out of it. However, if you wish to promote and market your bakery shop via logos, posters, word of mouth, etc. then you need to get a legal permit known as Signage license. This license needs to be obtained from the local civil authorities like the Municipal corporations.

So, make sure that you have all of the above-mentioned licenses, registrations, and permits in place before you open your bakery place to the public. If you do this, then you can run your bakery smoothly and avoid any legal hindrances.