" How to start food truck busines

Food truck business or a restaurant on wheels has been gaining popularity as a concept in India, among entrepreneurs and consumers alike. Food truck business was introduced in India in the earlier 70’s and 80’s itself, but only due to acceptance of western culture since the 21^st century we all are now aware of the term of Food truck. In fact, with threat of COVID-19 following us everywhere, a food truck is a safer bet. The advantage of mobility in a food truck gives the owner access to multiple locations. In this article, we will take you through everything you need to know about Food van: starting a food truck in India.

In India, the average price of starting a food truck business would be anywhere between Rs 15 lakhs to Rs 25 lakhs. It depends on the food that you will sell and the type of vehicle. The future of food truck seems bright with their projected revenue growth at a rate of 3.7% in the next five years. The meals on wheels concept have made its presence customary in Indian cities like food truck in Bangalore, Mumbai, Ahmedabad, Hyderabad, Chennai, Kerala, Delhi NCR by far and the need for it is rapidly increasing.

BENEFITS OF OWNING A FOOD TRUCK?

There are obvious reasons why Food van are a great way to encourage people into the Restaurant counterparts:

1. Low investment, low risk.
2. Fewer resources required.
3. Further customer reach.
4. Catering at events.
5. Leveraging your restaurant kitchen space.

Low investment, low risk.

A mobile food Van price or Fast-food truck price is around 10 lakhs INRif you carefully choose the right food truck manufacturers in India.

Fewer resources required.

One big advantage of a food truck is that you have a low dependency on resources. You can even get started with 1-2 resources (costing you around 4-8K INR per person).

Further customer reach.

The mobility of the food truck is giving the opportunity to the owner to reach more customers, resulting in direct interaction with a wider audience.

Catering at events

Besides your everyday operations, you should consider building a few partnerships and cater at events, corporate festivals and more. The Curry Up Now food truck, for instance, sells excellent Indian street food and caters to a large number of test and corporate events.

How to Start A Food Truck Business In India?

In order to commence a food truck business, it is significant to create a business plan which would act as a roadmap to the future growth of your food van. The following key points should be considered while starting a Food truck Business in India:

1. Choosing the right Food Truck or Commercial Vehicle.
2. Get the kitchen equipment and raw materials required in a food truck.
3. Apply for licenses and permits needed to start a food truck business in India.
4. Look for the workforce required to run the food truck smoothly.
5. Install POS software for your food truck.
6. Decide on the staff uniform for your food truck employees.
7. Market your business.
8. Decide on the total investment required to start a food truck business in India.
9. Other miscellaneous things required to keep your food truck business in India.

Different Types of Licenses required to start a Food Van in India

FSSAI Food License

Vehicle Registration

GST Registration

Fire NOC

Shop and Establishment License

Kitchen and vehicle Insurance

Approval letter from local municipal authority

NOC from RTO

Company Registration

Trademark Registration

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The different types of Food truck Licensing required to start a Food Van in India are as follows:

FSSAI License

As a Food Van Business comes under the realm of Food Business Operators (FBOs), it becomes a necessity for the owner to apply for FSSAI Food Licenseprior to initiating its business operations. Therefore, one of the significant licenses required to start a Food truck business in India is the FSSAI License.

Documents required for FSSAI License

1. Identity Proof in form of Aadhar Card
2. Address proof in form of utility bills
3. Valid Email Address
4. Affidavit
5. Phone Number
6. Declaration regarding the food safety management plan
7. List of food items and category
8. Kitchen Layout Plan
9. No Objection Certificate (NOC) from the owner
10. Water testing Report from an ISI approved facility
11. Medical Certificates of employees.

 

Types of Food License

• Basic License
• State License
• Central License

Basic License- Annual Turnover of less than Rs 12 lakhs.

State License- Annual Turnover between Rs 12 Lakhs to 20 Crores.

Central License- Annual Turnover of more than 20 Crores.

Applicable fee-2499/-

Team TAX ADVISORY will provide you with basic food license in just 2499/-. This Package includes:

1. 3 years validity of food license.
2. All FSSAI license government fee.
3. Preparation of FORM-A
4. Preparation of declaration signed by you.
5. Delivery of FSSAI LICENSE at your doorstep and email or WhatsApp.

If you want to apply for food license having 5-years validity, then by paying Rs 5499, you can obtain FSSAI license of 5 years validity.

If you want to apply for food license having 5-years validity, then by paying Rs 5499, you can obtain FSSAI license of 5 years validity.

Vehicle Registration

You will need food vehicle license as a commercial vehicle plays a great role in carrying out the business operations and affairs of a Food Van. Therefore, obtaining a food license from the RTO (Regional transport office) regarding the mobile food cart vehicle being used is a must for Food Van owner prior to starting the business operations.

GST Registration

The Taxpayer who falls under the GST criteria has to apply for GST Registration. The threshold limit for the GST Registration is 40 lakhs for the supplier of goods and 20 lakhs for the supplier of the services.

Documents Required for GST Registration

The Basic documents required for the GST Registration in India are as follows:

1. Registration proof of food business;
2. Address Proof;
3. Identity proof of the Food owner;
4. Address proof of the Food Owner;
5. Details of the business’s Current Bank Account;
6. PAN Card;
7. Rent Agreement or Lease Agreement

Fire NOC

Another important license requires to start a mobile Food truck in India is fire NOC or a Fire security certificate from the respective State fire department in which he/she desires to start a Food Van Business.

However, it shall be pertinent to note that the authorities will grant this certificate only after verifying proper installation of the fire extinguishers and other required safety measures in the van.

Shop and establishment license

The main aim of acquiring the Gumasta License or the Shop and Establishment License was to defend and safeguard the workers’ rights who are employed in the mobile Fast-food cart.

Documents required for Shop License

The Basic documents required for the GST Registration in India are as follows:

1. PAN Card of the Owner;
2. Identity proof of the Owner;
3. Address proof of the Food Owner;
4. Details of the Employees Employed;
5. Postcard photograph of the Food Van;
6. Address Proof

Kitchen and Vehicle Insurance- Nowadays, there is a need for every Food Truck or Food Van to compulsorily apply for insurance policies such as Kitchen Insurance, Vehicle Insurance etc.

Approval letter from the local Municipal Authority

After deciding the location of your mobile food cart business, you should obtain a written document that should get stamped by the Local Municipal body for commencing a food truck business.

NOC from RTO

Lastly, a food truck or food van owner requires to acquire a Commercial vehicle certificate from the respective RTO for selling the food items on mobile food truck

Company Registration

If you further want to set your business you can follow few legal procedures to your Company registered

Trademark Registration

If you own or operate a Food Truck, this means to fully protect your business you might need to apply for trademarks for the goods you sell and a trademark for the service your mobile food service company is rendering.

If you have any questions about how to protect your food truck, our team of experts would help you in such Trademark Registration.

Conclusion

In a nutshell, starting a Food Van in India you would require to have above license and permits for your food business. So, to regulate your business with confidence and diligence you seek any legal advice from our team of experts.

Further at TAX ADVISORY, our experts will assist you in acquiring FSSAI License, GST Registration, Shop and Establishment License, Company Registrationand all other license mentioned above to start a Food Van in India. You just need to contact us on 9193555055 or you can visit www.taxadvisory.in. 

 

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