In this article we shall discuss the requirements to run a food delivery service from a regulatory point of view
Online food delivery service applications have become quite popular in recent years. The convenience they provide and the variety of offers and discounts they offer have attracted a lot of attention. In metros and other cities, food delivery service applications get a lot of orders as they feature most of the city’s most popular restaurants. Hence, food apps for delivery have become sensations that help both consumers and hotels. Are you planning on creating an online food delivery application? If so, read on to learn more about the licenses and permits required to create or run a food delivery app in India.
What Is The Scope Of The Online Food Delivery Service In India?
Studies show that online food delivery service businesses will grow almost four times more than brick-and-mortar stores. As people get more comfortable eating at home, such food delivery service applications will become even bigger hits. We have already seen the growth of apps like Swiggy and Zomato, which are doing quite well for themselves. Within a few years, these apps have spread across the country, moving to even Tier 2 and Tier 3 cities. As internet penetration and smartphone access increase, these food delivery applications will grow even more. Hence, it is safe to say that the online food delivery service business has immense scope in India.
Things To Do Before You Create An Online Food Delivery Service Application
Here’s a quick look at the things you need to do before you create an online food delivery service application.
- Make sure you conduct thorough market research to understand your target audience truly.
- Try to gain insights into what your ideal market would be, what audience you want to cater to, and what their likes and dislikes are.
- Test out the products of your competitors to gauge what features they are missing out on so that you can add those to your final product.
- Identify gaps within the system and create a plan that does away with such gaps and provides you with a unique selling point.
- Create a menu with all these factors in mind so that you can meet all your customer demands and expectations.
- Make sure you consider the availability of raw materials and cooking expertise while creating a menu so that you don’t overwhelm yourself later.
- Once you have a meal plan, go for a pricing plan that is comparable with your competitors, but provides you with a good margin.
What Features Does An Online Food Delivery Service Application Require?
Some of the basic UI features that a food delivery service application requires are as follows;
- Sign-up Page which allows users to register themselves
- Profile Page, which displays all the essential details about the users
- Food Search enables users to search for food items and restaurants within the app
- Locator Page which displays the address and location of the restaurants listed
- Real-Time Tracking which enables users to view the exact location of their delivery partner
- Easy Order Placement feature allowing users to place their orders quickly and efficiently
- Minimum Load Time to ensure that the application opens quickly and works fast
- Forecast User needs by remembering past orders and displaying frequently visited restaurants on top of the page
- A user-friendly application that is easy to operate and intuitive and features simple navigation for exploring the app
- Simple payment portal that completes transactions quickly and securely.
Do You Require A License To Run A Food Delivery Service Application In India?
Yes, you need certain licenses and permits to run any food-related business in India. In most cases, the list of permits you will need depends on your location, as various states and municipalities have different laws. However, here’s a look at the most significant licenses and permits you need to run an online food delivery service application in India.
- E-commerce agreement: You will need to draft and sign various such agreements with your vendors and suppliers to establish and define your relationship. Not only do they make your partnerships legal, but they also help in removing any confusion and ambiguity.
- Health or Trade License: Most states require you to obtain a Trade License from the Municipal Corporation in case you are making the food yourself. These permits take about 30 days to obtain and usually remain valid for a year or so, and serve as an assurance that your products are safe and hygienic.
- Business Registration: The best way to protect your assets when running such an operation is to incorporate your business. Depending on your requirements and scale, you can opt to register as a Sole Proprietorship, LLP, or Partnership Firm.
- Signage License: In case you want to promote your business through the use of advertisements, promotional signs, and logos, you will need to get a signage license. The license essentially gives you permission to advertise or publicize your venture through the use of external methods, such as signs and boards.
- Tax Registration: Depending on the income you generate and the products you sell, you will need to register for tax payments. First and foremost, you will need a GST registration certificate to make the IT payments for your business. You can also register with the MSME Udyam portal to receive various government-mandated benefits. However, to do all this, you will need to register your company and obtain a company TAN and PAN first.
- FSSAI License: One of the most significant permits needed by any food business operator in India is the FSSAI registration. If you wish to make the food yourself, you have to choose between an FSSAI Registration, State License, and Central License depending on your income and area of operation. In most cases, new businesses may start with a basic FSSAI registration online. This remains valid for a year and ensures consumers that the products sold are safe and hygienic.
- Shop and Establishment License: Most states also require businesses to obtain a Shop Act license. This license, issued by the Department of Labour, takes about 30 days to obtain and is state-specific.
Other Licenses And Permits You Might Need to Include
- Trademark Registration to protect your brand identity
- NOC from the Fire Department
- Environmental Clearance Certificate
- Employee Provident Fund Organisation Registration
- Employee State Insurance Corporation Registration
Conclusion
For expert consultation regarding the licenses, you will need to start a food delivery service. It can be anywhere in India, reach out to us at Vakilsearch. Our expert lawyers have the technical and legal know-how to guide you on how to go about starting such a business. We also offer end-to-end legal support, with everything from documentation to filing returns.
