A Quick Guide to Starting a Food Transport Business

In one of the fastest growing economies in the world, business ideas are everywhere. The food sector is easily the fastest growing and the most lucrative of them all, and finding a business within this space is an excellent opportunity for commercial success.

Starting a Food Transport Business

The Indian food industry is currently regarded as one of the fastest-growing industries. A food transport service is the most important mode of connectivity between the manufacturer and the consumers. It ensures the food items are carried from the place of processing/manufacturer to the end consumer. Because of the high demand, the food transport services sector has experienced substantial growth of late. So, it’s no surprise that a food transport service is a great option for people looking to start a transport business. From the ways you can set up your business to the licences you need to get, we will discuss everything you need to start a food transport business.

Getting the Right Equipment

When you are starting a food transport business, you must first consider what kind of food you want to transport. Based on that, the type of vehicle and equipment you need will differ. For example, if you want to transport frozen food, there are special vehicles that are equipped for that.

Once you have decided this, you can go ahead and buy the equipment. Other things to consider in the starting stage are deciding on how much you want to be able to deliver, the frequency of delivery, etc. This will also dictate how much you need to invest in equipment.

Leverage E-Commerce

In the present day, one cannot fail to leverage the power of technology. If you follow age-old techniques, you will be left behind. Having a website has become a basic necessity for all businesses, and a food transport business is no different. 

You need to get a website and add all the relevant information about your food transport company in a way that makes people want to work with you. You should include features such as location finders, maps, search options, etc. on the website so that your potential customers can reach out to you in minimal time. The site should also mention how your company is different from other similar food transport services in the locality.

Get an App for Your Service 

Having a mobile app will give you direct access to the mobile phones of your potential customers. This will ensure better personal communication and a higher conversion rate. In the app, you should incorporate features such as account creation, vehicle tracking, payment, etc. 

Everyone has a phone these days. Using apps is the best way to reach and acquire more customers.

Build a Strong Delivery Network

You cannot provide quality food transport services without having an efficient delivery network. You need to build a network of delivery partners with good track records and solid experience. As you are dependent on others, without an efficient network, you might have a lot of troubles while running your business.

Obtain Licenses

You must obtain all the necessary licenses before you start a food transport business in a particular area. These include GSTIN registration, a trade license, and an FSSAI registration. All these licenses are necessary for the smooth operation of your food transport business.   

One of the most important licenses that you need to get is the FoSCos fssai food license. Many people who are involved in the food transport business forget this license and end up facing a penalty.

Please note that you need only one ‘license to operate’ from FSSAI for all the vehicles used in your food transport business.

Here Is the Procedure to Obtain the License for Your Food Transport Business:

1. There are 3 types of FSSAI licenses: basic, central, and state. These are divided on the basis of the turnover criteria. If you have a turnover of up to ₹30 crores or have up to 100 vehicles, you will need the state license for your food transport business. If your turnover exceeds ₹30 crores or you would like to use more than 100 vehicles, you will need the central FSSAI license
2. You need to fill in appropriate location details related to your business. If your business is operating in multiple states, you need separate state licenses for each of these states. Also, the central FSSAI license is a must in this case
3. In the online application form, you need to select the appropriate business category, capacity, and turnover
4. You need to fill in only generic names of the food items you want to transport. Also, make sure the food products are approved as per the provisions of the FSSAI Act, 2006.
5. After entering the details, you will be directed to the payment page. Upon successful submission of the payment, your application will be accepted for necessary approval
6. The FSSAI officials may contact you in case they want any more clarifications from your end. Also, they may ask for any other documents to ensure you own the required infrastructure to meet the requirement of the authority.

Alternatively, Vakilsearch can take care of the entire process of FSSAI registration for you! This way, you can focus on other aspects of starting your food transport business. We can also do your Company Incorporation and GST registration to make this easier for you.