Corporate Board Resolution Sample: Fill & Download for Free

A company being an artificial person can become a partner in a partnership firm.There are no requirements under the companies act 1956 and Indian partnership act 1932 in this case.However it is always a good corporate practice to pass a board resolution. This resolution is not required to be filed with ROC.Sample board resolution is :“RESOLVED THAT the Company be and is hereby authorised to become partner in Partnership Firm under the name and style of “XXX”“FURTHER RESOLVED THAT the company be and is hereby authorised to make investment in partnership firm “XXX” for the future prospects.”“FURTHER RESOLVED THAT Mr. M and/ or Mrs. M, Director of the Company be and are hereby authorized to negotiate and finalise the terms and conditions of proposed investment, to execute all such papers, documents, and agreements as may be required in this connection and do all such acts, deeds or things as may be required or considered necessary or incidental for giving effect to the above resolution.”Regards,My Legal Tax

Read this article - start-up registering business in india ?The information on starting or registering a business in india, is not one of those things that are very well available. The government staff who do it, don't want any layman to be informed, because their bread and butter is in the bribe money they get on each and each thing they do to accept your registration to helping you understand what and how to do it.But things are better with egovernance now.. read on. I think the company registration stuff is one of the first things to be a successful egovernanance project for India.About this post:I am setting up this blog post, and will be updating it regularly as I find more information on this and other interesting areas of starting businesses in India.. also I plan to write posts on my experience over years in helping people operate or handle their businesses... in the context of Indian companies only.If you have something to share/add/suggest, you can email me at harish.palaniappan @ Email from Google and I will find time to discuss with you and add your information and experiences in this blog as well.Information On Companies, Acts, and processes in IndiaMay be these links help to kick-off your information collection drive:Starting your own business in IndiaForming a company in IndiaStarting a business - by doingbusiness.orgThe Indian Ministry of company affairs websiteStarting a business in singaporeMCA21 : Online company registrations and other e-form processesThe Indian ministry of company affairs has setup an online governance website since september 2006 (delayed by almost 6 months) with the help of Tata consultancy services.* Note: Before you read further, understand that this post is not updated regularly when the ministry of companies of india's policies or processes change.. so you should look at this as a starter only.. and do find for yourself more information at the Registrar Of Companies offices around India.. or in the mca21 website.Types of companies:In the different types of companies that can be registered (or that can be created in India at all legally), there's no possibility of starting a single person company.. At a minimum, you can only start a private firm with 2 directors.But, the government has been recommended by an expert committee, to add a new class of companies which is proposed as 'One person company' and probably may have OPC Pvt. or OPC Pvt. Ltd. as the ending name of the company.If this recommendation is approved (which probably will be by amendments in the companies Act), then there will be a possibility of registering One Person companies in India. As of now, you atleast make a friendly legal entity as a director apart from yourself, like your mother or wife, or some friend, and register your company as a Private company with minimum 2 directors.Though it is technically bad that India hasn't still recognized 'one person companies', practically it is better to register as a private company since that will avoid further paper work when your 'one person company' grows to have employees which then requires a conversion in your registration or possibly re-registration.-- continuted --If you are a small enterpreneur, as it happens always, and probably into Software solutions, planning to be a product-based company, or services-based company, thinking of selling your software products / services within India or abroad, then registering your company as a Private firm with 2 directors would do. But this would allow you only to do business within the country. For legally allowing yourself to attract foreign currency through sales or service costs, all you need is an Import/Export number/code (costs somewhere less than 2000 rupees i heard...this number you will quote later while filing your filing your returns.. for foreign currency revenues)...but registering as a private company seems to be the first job to do.To register a private company:1. You can do everything onlineDoing the process online means, you download forms, fill them up digitally using adobe acrobat reader software, attach your digital signature and submit it in submission page on Ministry of Corporate Affairs The website says it will give you service request number for every such submission and you can track status of application online with that number. Also, if a form is rejected and if it is put in 'resubmit with proper information' or something like that, then without additional cost you can refill and resubmit under the same request number.1. Get DSC (digital signature):For all this you need a digital signature. Since there is no paper involved you can only sign digitally.. and only legal and secure method is through digital signatures which are given unique to every person who buys one.Note that the digital signature has nothing to do with your manual signature, it is some very very long and undetectable code provided to you as a file through email or in a thumb drive like storage media.And yes, keep the file or DSC media safe once you buy, because anybody can just steal this file and attach your digital signature to all documents that accept digital signatures (which is only company incorporation or name change or efiling forms today.. but later many other processes in life, for example filing company returns, also might start being computerized and accepting digital signatures)You buy DSC from Digital Ceritifying Authorities in India like MTNL (delhi and mumbai), TCS(all over india), and otherslisted here.While visiting the above websites you will see that there are different classes of digital signatures, and might be confused on which one to buy. The one that is minimum required for our discussion is 'Class 2 individual' or higher classes but something that is for an 'individual'. It is worthy to note here that, 'Class 1 certificate for individuals' which is a basic type of dignital certificate, is for 'individuals' but this DSC is not given based on proof of identity or proof of address.. so the government may not accept 'Class 1 certificates'.Recommedation: Buy a 'Class 2 individual' certificate.2. Get DIN (Directory Identification number):This is probably the only low cost process in incorporation. It costs 100 rupees to get yourself registered as a director (or going-to-be-director) of some company within india.Seems like anybody can apply for a DIN, provided you have any of these.. driving license/passport/elector ID, which is a valid proof of identity, and proof of address.The step-by-step process of getting a DIN is given hereRemember to get a DIN for your mom / wife / partner also if you plan to ask them be the second director of your small company.MCA User RegistrationTo submit forms, on the MCA website, you need an identity on the website.For now, since you may not have a DIN and DSC, you can register as an individual, using the 'New user registration' link on Ministry of Corporate Affairs . Then you can login with your password just like in yahoo mail or hotmail.After you get a DIN and DSC, re-register as a Business professional, using the same link.. and then on you will use your DSC to login to the website.3. Form 1A - Company name availability and blocking.This application is for blocking the name of the company you want to register.All forms that we are talking about in this or other steps are available hereBefore you download and fillup form 1A, you should check whether your company name is available through this pageFill up form 1A, with 2 DINs, affix your DSC, if you have to attach any documents scan them and attach them as files in the end of the form as applicable. Then submit the form. Note your request number and track the form until it is approved. We are almost half done.The above 3 items are the main items and all or most processes below can be done simultaneously.4. Role CheckThis is a simple process where a DIN and DSC are matched and verified to be of the same person, and also that this person is a valid signatory of the company.I am not sure, but this process might be neccessary only for efiling of tax or returns.. not for incorporation..Details about this step is here. http://mca.gov.in/MinistryWebsite/dca/rolecheck/rolecheck.html5. Form 1 - Incorporation Application:Download Form 1, fillup, attach digital sign and submit.6. Form 18 - Office address formDownload Form 18, fillup, attach digital sign and submit.7. Form 32 - DIN appointmentDownload Form 32, fillup, attach digital sign and submit.Steps 5, 6, 7 constitute the main parts... and if the Forms 1, 18 and 32 are approved, you will get a CIN or company identification number which you should quote alongwith your Company's PAN number (apply for one, if you don't have), in all future forms like tax forms, name change or address change forms.The overall cost of registering a private company with 2 DIN's through online mode, could cost as less as 2500 Rupees.. but this estimate can increase based on your capital investment which you will mention in Form 1A and others.As mentioned earlier,All forms are available hereAll process applications should take only a few days to be processed.All above processes might not have their old manual form filing methods sooner and everything will become digital because the ministry of company affairs is overwhelmed by its data, and is strongly being computerized. Already tax forms I think, are no more accepted in paper and government has recruited filing officers who help those who are not able to use a computer and do the process digitally.All above processes are part of a system called MCA21 and is managed and authorized for use by the ministry of company affairs and all its registrar of companies (RoC) offices.Initially, me and my friend hired a consultant for doing my friend's company's Registration(/Incorporation).Though this consulting company does it through Ministry of Corporate Affairs website only, they put in their experience of dealing with government processes.But, yes, you don't need to hire a consultant if you have the time to do it online, and if you know people who can attest your proof of identities (a gazetted officer), and if you know some lawyer who has authority to notarize with his signature anything that you produce on a stamp paper.Our consultant, was an authorized 'Company secretary'. It seems Ministry of Company affairs (MCA) has training and certifications for 'company secretary', which people take up and get authorized/certified (by the govt.) to provide these services to people. Company secretaries are obviously people authorized to do more than just incorporation.. like handling disputes between directors of companies, handling buyouts of companies, and many other things like that.. which require people with legal and indian acts and policy knowledge to do it.For us, our consultant would take care of verifying all documents, getting them attested, getting any legal papers notarized, and submit them through Ministry of Corporate AffairsCertain processes are easy.. and you can go to a consultant after these processes and save a few thousands in fee.For example, if you are a techie, and understand browsing and related technologies, then you are actually better than the consultant for getting your digital signature... and this one thing itself could save you more than 500 rupees. because I understand consultants cost 700 - 1500 rupees for filing your DSC application itself.Digital Signature:Just apply for a digital signature as mentioned above.. in TCS or MTNL websites.They will ask you to send some documents to a verification authority.The verification company will just verify your id proof and address proof and send you a digital signature kit with an eToken.An eToken is a protected pen drive/flash drive/usb drive, in which you can't do any data transfer but it will have your digital signature in it and when you insert it into any PC usb key, it installs the signature on the machine...not everything.. just the general part of it. you have to keep the key on the machine until you sign documents and remove it after.This kit and the digital signature costs 1,200 rupees for two years of validity.. (cost from TCS)If you apply from your machine, yourself, you will pay 1200 to the verification authority. nothing else. But if you use a consultant, he will do the online part also for you (assuming you are not the tech friendly person) and charge you twice or even more than the actual cost.Form 1A, and DIN application:These two forms are the initial steps, and probably easy steps for incorporation.Form 1A:Ministry Approval of Form 1A that you submit, means your company name and location is approved and you can start incorporation process. The name is valid only for 6 months and you should incorporate within 6 months.. or you can renew the name for another 6 months. The cost is a flat price of 500 rupees payable on http://Ministry of Corporate Affairs through credit card.If you are starting a software company, Form 1A will have no problems.. since the ministry won't question your address of manufacturing. Other businesses might have problems if the ministry feels your address is a residential area and you business is not proper to be there.. or things like that.In Form 1A, you have to give 6 or 7 company name choices.You type names... likeSample solutions Pvt., Ltd.,Sample software solutions Pvt., Ltd.,Sample Pvt., Ltd.,One of it gets approved.Director Identification Number (DIN):In India, to incorporate a company you need minimum two directors.. (yes, the law is outdated, and only recently government is considering recommedations that single person companies should be allowed to register)If you don't have another director, pull some friend you like.. or easier, get your mother or father as another director. So, atleast two directors should apply for and get a DIN to register the company under them. Later you can always change your directors, company name, address, anything.. just by submitting that form or application alone...and ofcourse paying for that change alone.If you are two or more people who will be directors, and if all of you have a valid passport, no other proof is required for submitting to government anywhere in the full process. A valid passport stands proof for name, address, and father's name most of the time... and the company affairs ministry seems to approve all applications with passport as proof for people, very smoothly.You don't need a consultant for submitting DIN if you follow the instructions clearly on the DIN pages that the ministry has.I think on Digital signature, and DIN .. ministry's website is clear.. and process itself is clear and easy to do by anybody who has used software like browsers, adobe acrobat, etc.,After two DIN's get approved, you can use the DINs and DSC of one director to apply for the actual, main, important form .. FORM 1. .. so this is why the first form we submitted was called FORM 1A (I was wondering why isn't called form 1 if its the first step in incorporation)For Form 1, we need the following.1. Form 1A approval (approving the name of the company)2. DIN numbers of directors (minimum two directors for pvt. ltd. company)3. Articles of Association (a stamped paper agreement signed by directors stating their claims of part ownership of company, has all about holding of shares, how they could be sold, how they could be bought back, blah blah..)4. Memorandum of Association (again a stamped paper document signed by directors stating what all are the objectives of the business, what all they want to sell/buy/resell/import etc., through the operations in the business, what all rights they will exercise in doing the business like renting space/real estate, having employees, etc., blah blah.. important part will be statement of objectives of business.. its like asking for incorporation only to do business on these lines.. if the operations or objectives change, you have to change the memorandum and resubmit for approval until which you can't do the new business)5. Form 18 stating the address of registered office of the company. (a simple form)6. Form 32 stating the DIN numbers of directors of the company. (a simple form)Sample word document templates for 3. and 4. can be downloaded from here (3) and here (4).Before you download, check up whether the ministry website has latest template of these files downloadable there.. as of this writing the ministry website hasn't put a link since this is a legal document and obviously it is a very important step which needs complete understanding by the person before signing it. The links above are provided only for you to have access to samples so you can read in detail before you get into doing it. Also, if you get to read, the 'Memorandum document (4)' read the 'objects' part carefully, because it says what you want to do with your business and you know this better than your consultant.Submitting Form 1 means, submitting all the above.In submitting Form1, you will need a consultant or help with the text from a Chartered Accountant, or company secretaries, or simply referrence documents from friends who have already done this.That's if.. you submit Form 1 digitally scanned and signed with the digital signature of one of the directors, through Ministry of Corporate Affairs... originals also have to be submitted to the registrar of companies.While submitting Form 1, you have to pay a registration fee which is based on a slab for the capital you are mentioning.. minimum capital is 1,00,000 rupees.. I mentioned just that, and the fee was 4,800 rupees for that.. (so that means it takes a minimum of 4800 rupees for registering a private limited company in India, not like I thought earlier that it could be done with around 2500 rupees).Government generally approves Form 1 submission in 1 day after the originals are submitted.Sometimes if the objectives of business stated in the memorandum is not clear / the AOA (3) or MOA (4) documents have mistakes / incomplete, then the registrar office raises a query or asks for deletion of objectionable points, or asks clarifications.. and the form has to be resubmitted if changes are made.. and I believe you don't have to pay again for corrections but I am not sure. For this part, probably being proactive, my consultant took a power of attorney from me and my mom for doing such changes himself, if they are raised, and to resubmit the memorandum himself without signatures from the directors (me or my mom).Once, your Form 1 is approved, within a day or two you will receive an email with a one page pdf certificate of incorporation(unsigned) with a Company Identification Number (CIN).. probably they will send an original signed one later which I am yet to receive.Actually, you should start business transactions, only after you receive this certificate.. though it happens usually that everybody does registration or incorporation a couple of years after starting business.Import / Export Code - IEC:After Registering the company, a software solutions provider, who wants to be able to provide services to foreign clients, or sell products online to people outside India, MUST apply for an Import/Export license.Bank account:For getting IEC, you need to have a current account in a bank under your new registered company's name. The bank will obviously ask your documents of company registration. Other than that, the bank will ask you a 'Board Resolution' from your company, signed by all registered directors of the company, authorizing one or more of the directors of the company to open and operate the account in the company's name. The board resolution is just a letter/statement from the people who represent the company, but some banks like it in a specific format and you can ask the bank to give you the board resolution format if they have. Some banks even have this format downloadable on their websites 'corporate banking' sections.The current account, will also be useful for you to do transactions in your company's name, which is a MUST for accounting your company's cash flows. Also, you will be able to accept payment from your clients in the name of your company through Cheques, direct wire transfer, etc., which clients will like since they will understand that your company is a permanent entity, and you are not somebody who takes money and can go missing.IEC application process is simple:You get an application form from the Zonal director general of Foreign Trade.. or download from their website (like their Tamilnadu/Chennai office website).Major attachments to this process are:1. your company registration form,2. a letter from your bank attesting that a current account is held under your company's name operated by one of the director's of the company, and the bank should attest in the letter the photographs of the directors of the company.The zonal director's office will guide and help you in the application process by rejecting the application with corrections mentioned clearly for you to correct and re-submit, each time you do it.Some consultants take close to 3000 rupees to do the IEC process.. my recommendation Do it yourself if you have not done this before, you will like to know and be clear of what is happening.

FSSAI registration is a crucial step for any institution in India looking to sell food commercially. This article will provide you all the information that you need to know about an FSSAI License.Here are the key headers that would be covered.What is FSSAI License and Registration?About the FSSAI Registration and License Issuing authorityWhat documents do you need to apply for an FSSAI Registration?How to get an FSSAI License?Checking FSSAI Registration application statusTypes of FSSAI LicensesCost of an FSSAI LicenseValidity of an FSSAI LicenseSteps for renewal of the FSSAI LicenseWhy restaurants need an FSSAI License? (Benefits and legal aspects)Other licenses you need to have at your restaurantFrequently asked questions around the FSSAI License and registrationWhat is an FSSAI License and Registration?FSSAI the acronym stands for Food Safety and Standards Authority of India. The license issued by the FSSAI is an authorization that allows an institution to sell food commercially. According to the FSSAI official website, any food business operator that is in the business of manufacturing, processing, storing, distributing and sale of food must mandatorily apply for and have an FSSAI Registration. So, the scope of the FSSAI goes above and beyond restaurants. Apart from serving as a legal certificate, an FSSAI License is a mark of a benchmark food quality. When you register with the FSSAI, you are given a unique 14 digit registration number. Your institution will be provided with a license depending upon the scale of operation. This serves as a unique license number for your restaurant.Issuing authority of the FSSAI LicenseFSSAI License is issued by the Food Safety and Standards Authority of India. The FSSAI is an autonomous body that was established under the Ministry of Health & Family Welfare, Government of India. It has been established under the Food Safety and Standards Act, 2006 (FSSA Act, 2016) which is a consolidated statute related to food safety and regulation in India. FSSAI is primarily responsible for the protection and promotion of public health through its key functions of regulation and supervision of food safety.What are the documents do you need to apply for an FSSAI License?The basic FSSAI registration is pretty direct and uncomplicated. These are the documents that you need for it.1. Photo Identity of the Institution’s Operator (Restaurant Owner).2. Proof of the complete possession of property (eg. Rental Agreement ).3. A Partnership Deed or a Certificate of Incorporation.4. List of food products (that would be inputs as well as the final menu) to be dealt with.5. A detailed food safety management plan.The following are the documents required for the FSSAI State License:1. You would need a government ID proof (Voter ID card, Passport, Driver’s License, Aadhar card).2. You need to have the Form-B that is duly filled up and signed (in Duplicate) by the Proprietor or Partner or the authorized Signatory.3. You will need to have a blueprint or a layout plan of the restaurant having the exact specs (showing the dimensions in meters) and the operation-wise area allocation, this would include all kitchens or manufacturing spots of your restaurant.4. All the important personnel of your restaurant which would include the list of Directors or Partners/Executive Members of Society/Trust with the complete address and contact details. This is a mandatory detail for any restaurant.5. A comprehensive list of all equipment and machinery along with the individual details. This is of importance particularly when you have a kitchen or manufacturing unit.6. You would need an identity and address proof that is issued by the Government Authority for Proprietor/Partner/Director(s).7. You would need to share a list of food categories to be offered to the customers.8. An authority letter that includes the key details such as name and address, the responsible person nominated by the restaurant. Apart from this, you should also include other important persons and the powers vested with them so that the POC for any inspections, sample collection and so forth can be easily reached whenever necessary.9. An updated analysis report of water that is used as a key ingredient in the food preparation process. This should only be done from a recognized public health laboratory.10. A valid proof of possession of premises. This could be a sale deed or a rent agreement.11. You will need to furnish a Food Safety Management Plan or a certificate of the same.12. In case milk is used as an ingredient/raw material – you’d need to demonstrate the source of milk or procurement plan for milk including location of milk collection centers (in case of Milk and Milk Products processing).13. In case your restaurant serves non vegetarian options, you would also need to mention the sources of raw materials for meat and meat processing plants.14. In addition to the water analysis point mentioned under point number 9, you would also need to produce the pesticide residues report of water. This is in the specific instance of units manufacturing packaged drinking water or mineral water and/or carbonated water from a recognized public health laboratory.15. You may also have to show the business plan.16. You would need a NOC certificate from the Municipality or local body.17. A completed version of Form IX: Nomination of Persons by a Company along with the Board Resolution.18. Certificate provided by the Ministry of Tourism.How to get an FSSAI License?The FSSAI has now launched an online application process called the FLRS which is an acronym for Food Licensing and Registration System. You can access the page here (FLRS)FLRS now provides users the option of checking the eligibility for the license and apply for it online. In addition to this, it also sends out automated alerts to entrepreneurs via a text message and email so that the registration and license can be renewed timely.Online Application of the FSSAI LicenseFollow these Steps to apply for the FSSAI License online1. Go to FSSAI’s official website (Link – http://foodlicensing.fssai.gov.in) and check your eligibility for the registration or state/central license.2. Fill out the sign-up form for the given criteria and have your account activated.3. Log-in to your newly created account and start filling out the application form. Make sure that you have all the documents that are required for the criteria you selected.4. Once you have filled out the form, click submit and take a print out and keep it as a copy. A reference number would then be shared with you will help you keep track of the status of your application.After receiving the application, the designated authorities would examine it and will then carry out an inspection. If the appointed inspector is satisfied with the details and the physical inspection, he or she would then forward the report and the license would then get issued by the concerned authority. This may take a period of 60 days.Offline ApplicationIf offline mode of payment is more convenient for you, FSSAI provides you a provision for that as well. Within 15 days of the submission of your application form, the applicant should take a printout of the Online Application Form, attach a demand draft of the amount (in case the fees is not paid online) and submit the supporting documents along with the application to the State Authority.How to check the application status of your FSSAI registrationIt is pretty easy to check the application status of your Food License.1. Go to the FSSAI website – FSSAI2. Enter your unique tracking details as shown on the form below.(You would need to keep handy of a 17 digit application number that you get on first signing up for the food license.)Upon entering your details, you would be routed to the status page.Types of FSSAI LicenseFSSAI License can be of three kinds.FSSAI Central LicenseThe Food Business Operators (FBOs) are required to obtain a Central Food License issued by the Central Government. A central food license operates only when a state is operational for more than a month. The central license then applies to the central office alone but covers all the offices across the country. Usually, a central license is procured by restaurants (FBOs) having an annual turnover of greater than 20 crores. The maximum tenure of the Central License is 5 years and the minimum is 1 year.FSSAI State LicenseSmall to mid-sized restaurants are expected to obtain the FSSAI state license. This license is issued by the government of that particular state where the party wishes to open a restaurant. So if a restaurant has an annual turnover falling between 12 lakh to 20 lakh INR then it would need a State license. The maximum tenure for this license is also 5 years and the minimum is 1 year.Basic FSSAI RegistrationThe small and low turnover restaurants with annual revenue of up to 1 lakh are required to obtain an FSSAI registration (basic). This FSSAI registration is also issued by the State Government of the concerned state. The maximum and minimum tenure of this license are 5 years and 1 year respectively.Cost of an FSSAI LicenseThe cost of an FSSAI license varies according to the type of license issued. Here are the fees for all license types.FSSAI Registration – 100 INR per yearFSSAI State License Registration – 2000- 5000 INR per yearFSSAI Central License Registration – 7500 INR – per yearValidity of an FSSAI LicenseThe validity of an FSSAI license is anywhere between 1 to 5 years. The licenses usually get renewed yearly upon payment of the license fee.Renewal of the FSSAI LicenseAs stated by the FSSAI, the FSSAI food license must be renewed for a period of 1 year or 5 years (depends on a case to case basis). The renewal should be done not later than 30 days before the expiration date as given on the license. A late renewal fee of 100 INR per day applies for each day of delay post the expiration date.FSSAI license can be renewed online or offline.Online Renewal of the FSSAI License1. Create a User ID and password that would be used to log in. This User ID and password would be only applicable for a period of 30 days.2. Fill out the renewal form.3. On filling out the form, you will get a unique 17 digit number that can be used by you to track the status of the renewal.4. Typically, the renewal should be completed in a 30-60 day window.Offline Renewal of the FSSAI License1. Fill out the FSSAI form A, B, and C that are publicly available on the website.2. Submit a self-attested declaration of ownership of the business.3. The FBO will conduct a check and ensure that all the details provided are in order.4. If all the documentation is in order and the inspection result (as conducted by the authority) is satisfactorily, then the license would be issued in a 30-60 day window.The FSS Act, Inspections and UpdatesFSSAI’s prime objective is to ensure the compliance of a basic set of standards in the entire value chain of production, distribution, storage, and sales. To meet this requirement, a certain act was passed called the FSS Act of 2006 which sets down clear rules and regulations pertaining to food safety and quality management. FSSAI is the body that makes sure that all restaurants are following the laws laid down on the FSSA. A failure to adhere to the same puts restaurants at risk of delisting.FSSAI also brings about certain updates to keep up the practice of food safety and quality compliance.Eat Right Movement – A program that aimed at getting citizens to opt for healthy food options (August ‘19)Delisting of 10,000+ restaurants (August ‘19)20 lakh street food vendors to come under the ambit of FSSAI (August ‘19)Banning of Plastic for distribution of food (December ‘18)Why restaurants must have the FSSAI License?Entrepreneurs or restaurant owners know that the FSSAI License serves an important legal objective. However, most oversee a few of the other important functions that the FSSAI License serves. Here are some of the ways in which an FSSAI License can be used.Consumer awarenessFSSAI is the gold standard when it comes to food quality. Consumers are aware of this especially in the wake of recent happenings. FSSAI is often found on the news with restaurants being delisted across multiple locations. An FSSAI registration stamp then acts as an authority and quality control measure for a restaurant, which in turn builds brand credibility.Legal necessityNeedless to mention, the FSSAI registration is a legal necessity for any restaurant whatever be its scale. The FSSAI registration process is indeed time-consuming (takes around 2 months) and entails multiple rounds of quality check. If a restaurant is caught without a valid license a heavy fine is involved, thus having one is always the first step for any entrepreneur wanting to open his food business.FSSAI Logo – A marketing toolAn FSSAI logo lives to serve a marketing objective also, Restaurants use the logo at the outlet in their menu cards and other places where it catches the eye of the customer. The logos along with the unique FSSAI ID can be used by restaurants. It is seen as a strong mark of validity, quality and also an assurance standard for the consumers.Business expansionA State License to a Central Ln FSSAI registration makes business expansion easier. If you are upgrading from a single city to a multiple city presence, then you may have to upgrade your FSSAI License as well (from license). If you already have multiple city presence then adding a new city will not be hard. With a central license, you are legally allowed to commercially sell food across India (as long as you have the other essential licenses). The FSSAI License helps you build your brand and makes it easier for you to grow your business. The license also makes it easier for you to avail of bank loans and for funding which is needed for expansion.Other licenses (besides the FSSAI) that you need at your restaurantAn FSSAI License is perhaps the first license that puts a restaurant legally into the business. But there are a host of other licenses that a restaurant needs in order to be legally safe. Here is a comprehensive list of all the other licenses that you need at your restaurant.Liquor LicenseIf you plan to sell liquor at your restaurant, then getting the Liquor License is a mandate. You can obtain this from the Local Excise Commissioner, forms for which are available at the respective State Government websites. Having this license is a must since selling liquor without a license is a punishable offense.Liquor License Cost- 5,000 INR must be paid on document submission and an additional 50,000 INR is required to be paid for each additional spirits brand (like whiskey, rum, gin, brandy, vodka)Health/Trade LicenseThis license will ensure that your restaurant is cleared of all the possible health concerns as on the list shared by the Health Department. It will need around 60 days to be issued to you after your submission of the form and documents.A restaurateur can apply for Health/Trade License either at CSB or online. The forms are available at the State’s Municipal Corporation website or Zonal Citizen’s Service Bureaus. Municipal Corporations hold power to shut down restaurants that do not have this license.Eating House LicenseThe Eating House License is provided and authorized by the Licensing Police Commissioner of that city where you would want to open the outlet.Eating House License Cost- The approximate cost required to issue the Eating House license is Rs. 300, applicable for a period of three years.Shop and Establishment LicenseTo run a food business in India, you must register your restaurant under the Shops and Establishment Act. For anything from a cloud kitchen to a fine dining restaurant, a Shop and Establishment Act is needed. Your restaurant needs to be registered within a 30 day period of the commencement of your business. This license is city-specific.Shop and Establishment Cost- The total cost you would incur for this license is between 200 INR to 4,000 INR per year. The cost of the license is relative as it depends on the number of employees and the location of the restaurant.Fire Safety LicenseAs a legal mandate, a restaurant must protect the customers from all things dangerous, be it adulterated food products or fire hazards. Thus, a No-Objection-Certificate (NOC) from the fire department is needed to run a restaurant.Fire Safety License Cost- Currently, there is no fee associated with Fire Safety.Lift ClearanceIf you wish to install a lift in your restaurant, you have to get a clearance from an inspector from the electricity department and the Labour Commissioner of the city. The Electrical Inspector issues this license from the office of the Labour Commissioner after verifying the details – that would be the installation of life, layout, safety gear, and the likes. State-wise applications are also available for obtaining the lift clearance.Music LicenseTo be able to play music at your restaurant, you would be needing a restaurant music license. In India, this license is issued by the Phonographic Performance Limited (PPL). If a restaurant does go ahead and play music and operates without the said license (within the restaurant premises), they will be charged a legal penalty fee.Certificate of Environmental ClearanceA restaurant is legally and morally bound to ensure that its operations do not have any negative impact the environment. Keeping this in mind, you are supposed to apply for the Certificate of Environmental Clearance.Signage LicenseYou need to market your restaurant well to ensure that your business does well and gets the maximum profit. You need to mandatorily obtain the signage license from the Municipal Corporation or a local authority for legally being allowed to use posters, graphics and paintings to market your restaurant in the nearby areas.Quick and Important FAQs – FSSAI Registration and LicenseHow much time does it take in India to get an FSSAI registration done?A basic FSSAI License can be issued in 7-10 days. A State and Central license can take a time period of 30 days.Can an FSSAI License be transferred?FSSAI License can be transferred upon the death (or other mitigating circumstances) of the license holder. In this case, the license gets passed onto a family member or another legal representative.What is the fees of a duplicate FSSAI License?A duplicate FSSAI fee is INR 10 and can be applied for from the FSSAI website.What is the maximum tenure for an FSSAI License?The maximum tenure of an FSSAI License is 5 years and the minimum tenure is 1 year. Upon completion of the license period, it must be immediately renewed.Do I need an FSSAI License for a home-based food business/restaurant?Yes, FSSAI License is needed for any food business and should be acquired for any home-based business or a cloud kitchen.What is FSSA 2006?FSSA is short for Food Safety and Security Act 2006. It is the updated legal document that sets the standards for food products, and the production and distribution of foods. Its main objective is to maintain a certain quality to prevent any adulteration in the food.Do consultants help in the FSSAI registration process?FSSAI registration is pretty direct and can be done by individual restaurant owners themselves. However, consultants can be hired for a given fee that ranges from 1000 – 4000 INR.What kind of restaurants fall under the purview of the FSSAI registration?All restaurants need an FSSAI License. Be it QSR, pubs and bars, casual or fine dining, all restaurants need to have the food license. Not having one is a legal offense.For Free Restaurant business consultant, mail us [email protected] or call 6290719173