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Starting a spices business in India is a very profitable option as India is a major producer and exporter of spices. Spice manufacturing or spices powder is a type of business that ensures the owner with good returns with low investment. Spice powder is very essential ingredient in cooking; none of the Indian food is made without the spices. Spices manufacturing is very beneficial business in India.

Powdered spices are convenient to use, as it saves your time and efforts for preparing different delicious food. Every commercial food industry like restaurants, hotels, and many more are using powder spices on a daily basis.

Going to start spices manufacturing & don’t know how to start, no need to worry as in this article we discuss the procedure to start a spice business in India with relevant information.

How to start spices company in India

Cost involved

The spices market of India is forecasted to reach approximately USD 18 billion by 2020, with growth in the sector expects to be led by spices and spice mixes. A business man can start this business with small-scale investment. There are some other additional expenses like maintenance, employee salaries and marketing cost.

Licenses required for spice business

Here are few licence required for spice business which are as follows;

1. Food License
2. GST Registration
3. Udyam/MSME Registration
4. Trade License
5. Trade Mark Registration
6. Company Registration
7. IEC Code
8. BIS Certification

Food License

The FSSAI food license acts as a proof and permission for any place or shop dealing in food to be a legal manufacturerand distributor of cooked and processed foods which are to be sold commercially to the masses. Spice powder is a food item, so you need to get a food operation license or FSSAI Registration, which is compulsory for every food industry.

Documents required for FSSAI License

1. Aadhar Card
2. Address proof in form of utility bills
3. Email Address
4. Mobile Number
5. List of food items and category
6. No Objection Certificate (NOC) from the owner

Types of Food License

There are three types of FSSAI License:

FSSAI Registration

It is required for every small food businesses with less than 12 lakh turnover annually.

State Registration

State registration is required when you have small spice business to mid size spices business with annual turnover between 12 lakh to 20 crores.

Central License

Central license is required when you have large spices business and spice business chains with more than 20 crores annual.

Applicable Charges - 2499/-

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

1. 3 years validity of food license.
2. Preparation of FORM-A
3. All FSSAI license government fee.
4. Preparation of declaration signed by you.

If you want to register for food license having 5-years validity, then you need to pay Rs 5499. By paying this, you can obtain FSSAI license of 5 years validity.

GST Registration

GST registration is mandatory for you if your annual turnover is exceeding Rs. 40 lakhs, or you are e-commerce trader and making interstate supplies.

If these conditions are applicable on you, you can freely contact Tax Advisory for GST Registration.

Documents Required for GST Registration

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

1. Registration proof of spice powder business;
2. Address Proof;
3. Identity proof of the spices business owner;
4. Address proof of the spices business Owner;
5. Details of the business’s Current Bank Account;
6. PAN Card.

Company Registration

Registration of firm should be depending upon the scale of business. For starting spice business in India, firstly you need to get Company Registration. If you have started your business as One Person Company, then you have to register your firm as a proprietorship.

For partnership operation, you need to register as a limited liability partnership or private limited partnership with ROC.

 For making your spice business as registered company you can visit www.taxadvisory.in.

Trade Mark Registration

Trademark can be described as a unique identity that makes your organization and administration stand out from the rest. Having a trademark builds a Trust and Goodwill among the society. Trademark registration process is completed by filing the application under the Trademark Act.

If you have any queries regarding Trademark Registration, you can contact us.

Udyam/MSME Registration

If you register your business with Udyog adhar MSME registration, it will help you to get the facility & subsidy from the state government.

Trade License

It is a document that gives permission to the applicant to initiate a particular trade or business in a required area. So it is essential to obtain Trade License from local authorities.

IEC Certificate

If you are going to export of spices you need to apply IEC code. It is the first registration needed for the business entities who are dealing in exporting or importing of goods and servicing from India.

BIS Certificate

You need to acquire the BIS Certification. The ISI specification for ground spices are;

1. Blackhole and ground ISI-1798-1961
2. Chilli powder ISI-2445-1963
3. Coriander powder ISI-2444-1963
4. Curry powder ISI-1909-1961
5. Ways of sampling and test of spices and condiment ISI-1997-1961
6. Turmeric powder ISI-2446-1963.

Space required

There is no huge space is required when it comes to commencing a business with spices, around 250 sq yard can be use for processing of spices and around 250 sq yard is needed for packaging of spices.

Raw material required

There are two types of raw material required;

1. Underground spices
2. Packaging raw material

Machine Usage

Grinding machinery is essential machinery needed in spice business depending upon the scale of industries the equipment is used. Other than griding machinery, spice grinder, weighing scale, packaging machine, compressor and roster are also required.

Spices Manufacturing process in India

Cleaning Process

It is a primary process of spice producing in which the below ground spices are clean manually by removing impurities like stone, dust, and dirt.

Drying Process

After the removing the impurities from spices, place them in sunlight so that the spices will dry. The character of spice powder will depend upon the well-dried spice.

Roasting Process

After spices being dried, now they are going through the roasting process. The roasting process of spice is necessary because it will aid to give the fragrance, colour and food taste to spice powder.

Grinding Process

Grinding machine is used for pulverizing to convert the different spices into the powdered form.

Grading Process

Grading is a procedure which is the basis of the inclusion and dimension of spices mix with their raw material utilized; it also depends upon the type of spices, shape, size and color etc. 

Sieving Process

Make certain that the spice powder has a static mesh dimension.

Packaged Spice

It is essential to protect and preserve your spices and seasonings with stand up pouches with zip locks and such packaging bags will help you to choose the best size, and features for your spices.

Once the spices transformed into powdered form, then the spice powder weighted as per the quantity that needs to pack. After weighing, the spice are then wrapped in a polythene bag and sealed with the help of sealing machine.

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