Required Registrations for Food Businesses in Hyderabad

Hyderabad is a city of food lovers, where you can find a variety of cuisines and delicacies to suit every taste and budget. Whether you want to start a restaurant, a bakery, a catering service, or a food truck, Hyderabad offers a great opportunity for food entrepreneurs. However, before you launch your food business, you need to obtain various licenses and registrations from different authorities to ensure compliance with the food safety and quality standards. In this article, we will discuss the main legal requirements for starting a food business in Hyderabad.

Food License from FSSAI

FSSAI stands for the Food Safety and Standards Authority of India. It is the apex authority that regulates and monitors the food business in India. Every food business operator (FBO) involved in the manufacture, import, processing, packaging, storage, distribution, or sale of any food product must obtain a food license from FSSAI. The FSSAI license is of three types:

• FSSAI Registration: For food business with annual turnover less than ₹12 lakhs.
• FSSAI State License: For food business with annual turnover more than ₹12 lakhs and less than ₹20 crores, operating within Telangana, including Hyderabad.
• FSSAI Central License: For food business with annual turnover more than ₹20 crores, or operating in more than one state, or dealing with imported food products.

The FSSAI license can be applied online through the Food Licensing and Registration System (FLRS) portal or offline through the designated licensing authority. The license is issued with varying validity from 1 year to 5 years. The FBO must display the FSSAI license number at the premises of the food business and on the food packaging labels¹.

Trade License from Municipal Corporation

Trade license is a permission granted by the municipal corporation to carry out a specific trade or business activity at a particular location. It is also known as an eating house license for food businesses. Any food business operator must obtain a trade license from the concerned municipality before starting the food business. The trade license is valid for one year and must be renewed annually. The trade license ensures that the food business follows the sanitary, hygiene, and safety norms prescribed by the municipal corporation².

Liquor License from State Excise Department

If the food business intends to serve alcohol along with the food, it must obtain a liquor license from the state excise department. The liquor license is a permission to sell or serve alcoholic beverages at a specific place. The liquor license is granted by the state government and varies from state to state. The liquor license is subject to various conditions and restrictions such as the type of liquor, the quantity, the timing, the age limit, etc. The liquor license is also valid for one year and must be renewed annually. The liquor license ensures that the food business complies with the excise laws and regulations³.

Fire Safety NOC from Fire Department

Fire safety NOC is a no-objection certificate issued by the fire department to certify that the premises of the food business are safe from fire hazards and have adequate fire-fighting equipment and measures. Fire safety NOC is mandatory for food businesses that involve cooking, heating, or storing inflammable materials. The fire safety NOC is issued by the fire department after inspecting the premises and verifying the fire safety standards. The fire safety NOC is valid for three years and must be renewed thereafter. The fire safety NOC ensures that the food business minimizes the risk of fire accidents and protects the lives and property of the customers and employees⁴.

Shops and Establishment Registration from Labour Department

Shops and establishment registration is a registration of the food business under the shops and establishment act of the respective state. The shops and establishment act regulates the working conditions, hours, wages, holidays, leaves, etc. of the employees working in the food business. The shops and establishment registration is required for every food business that employs more than 10 workers. The shops and establishment registration can be done online or offline through the labour department of the state. The shops and establishment registration is valid for one year and must be renewed annually. The shops and establishment registration ensures that the food business follows the labour laws and provides fair and decent working conditions to the employees.

Pollution Clearance from Pollution Control Board

Pollution clearance is a clearance certificate issued by the pollution control board to certify that the food business does not cause any environmental pollution or harm. Pollution clearance is required for food businesses that generate or discharge any waste, effluent, or emission that may affect the air, water, or soil quality. Pollution clearance is issued by the pollution control board after assessing the environmental impact of the food business and prescribing the necessary pollution control measures. Pollution clearance is valid for five years and must be renewed thereafter. Pollution clearance ensures that the food business adopts eco-friendly practices and contributes to the conservation of the environment.

License for Playing Music or Videos from Phonographic Performance Limited (PPL)

License for playing music or videos is a license to play or broadcast any recorded music or video in the premises of the food business. License for playing music or videos is required for food businesses that use any music system, television, projector, or any other device to play or show any music or video to the customers or employees. License for playing music or videos is granted by the Phonographic Performance Limited (PPL), which is a collective body of the music producers and owners. License for playing music or videos is subject to the payment of royalty fees and adherence to the terms and conditions of the PPL. License for playing music or videos is valid for one year and must be renewed annually. License for playing music or videos ensures that the food business respects the intellectual property rights of the music or video creators and pays them their due share.

Tax Registrations from Income Tax, GST, and Professional Tax Authorities

Tax registrations are the registrations of the food business under the various tax laws and authorities. Tax registrations are required for every food business to comply with the tax obligations and file the tax returns. The main tax registrations for food business are:

• Income Tax Registration: It is the registration of the food business under the income tax act. It involves obtaining a Permanent Account Number (PAN) and a Tax Deduction and Collection Account Number (TAN) for the food business. PAN is a unique identification number for the food business for the purpose of income tax. TAN is a unique identification number for the food business for the purpose of deducting and collecting tax at source from the payments made to the suppliers, employees, etc. Income tax registration is mandatory for every food business and can be done online through the income tax portal.
• GST Registration: It is the registration of the food business under the goods and services tax (GST) act. It involves obtaining a GST Identification Number (GSTIN) for the food business. GSTIN is a unique identification number for the food business for the purpose of GST. GST is a comprehensive indirect tax levied on the supply of goods and services in India. GST registration is mandatory for food businesses with annual turnover more than ₹20 lakhs (₹10 lakhs for special category states). GST registration can be done online through the GST portal.
• Professional Tax Registration: It is the registration of the food business under the professional tax act of the respective state. Professional tax is a tax levied by the state government on the income earned by the professionals and employees. Professional tax registration is required for food businesses that employ any workers or professionals. Professional tax registration can be done online or offline through the professional tax authority of the state.

Labour Law Registrations from Employees’ Provident Fund (EPF), Employees’ State Insurance (ESI), and Employee’s Compensation (EC) Authorities

Labour law registrations are the registrations of the food business under the various labour laws and authorities. Labour law registrations are required for food businesses that employ any workers or staff. The main labour law registrations for food business are:

• EPF Registration: It is the registration of the food business under the employees’ provident fund and miscellaneous provisions act. It involves obtaining an EPF code number for the food business. EPF is a social security scheme that provides retirement benefits to the employees. EPF registration is mandatory for food businesses that employ 20 or more workers. EPF registration can be done online through the EPF portal.
• ESI Registration: It is the registration of the food business under the employees’ state insurance act. It involves obtaining an ESI code number for the food business. ESI is a social security scheme that provides medical and cash benefits to the employees and their dependents in case of sickness, injury, or death. ESI registration is mandatory for food businesses that employ 10 or more workers. ESI registration can be done online through the ESI portal.
• EC Registration: It is the registration of the food business under the employee’s compensation act. It involves obtaining an EC policy for the food business. EC is a social security scheme that provides compensation to the employees and their dependents in case of injury or death due to an accident arising out of and in the course of employment. EC registration is mandatory for food businesses that employ any workers. EC registration can be done online or offline through the EC authority.

Infrastructure Licenses from Electricity, Water, and Gas Authorities

Infrastructure licenses are the licenses to avail the basic infrastructure facilities such as electricity, water, and gas for the food business. Infrastructure licenses are required for every food business to ensure the smooth and uninterrupted operation of the food business. The main infrastructure licenses for food business are:

• Electricity License: It is the license to obtain the electricity connection for the food business. Electricity license is granted