Starting an Organic Food Business: Legal Requirements

Companies that sell organic food are growing in popularity as consumers’ concerns about the environment and their own health get higher. But entrepreneurs need to know the legal and regulatory requirements before starting an organic food business. In this blog, we have included all the information you need to start an organic business in India!

What is an organic food business?

“Organic” food business refers to a type of business that focuses on growing, preparing, and selling food without the use of artificial fertilisers and pesticides. These companies place a strong emphasis on employing environmentally friendly and sustainable farming methods. Organic food businesses sell food products to people that don’t contain chemicals and toxins that could impair your health and well being.

Benefits of starting an organic food business

Nowadays, organic food is becoming more and more popular, and for a good reason! Organic food benefits our world and promotes a better way of life. But what particular advantages come with kicking off an organic food company? Let us go through  some of the advantages of starting an organic food business:

1. Healthier option:

Compared to their conventionally cultivated equivalents, organic foods frequently taste better and are more fresh. They contain more nutrients, so you get more food for your money. By providing your clients with more nutritious and delicious options, you not only enable them to live better lifestyles, but you also develop an active customer base. Organic food also contains less harmful chemicals and more vitamins and other nutrients, and  is healthier for our general health.

2. Social and Environmental Responsibility:

You’re taking on a significant responsibility of both the environment and our society by setting up an organic food company. A great motivation is the knowledge that you are fostering a more sustainable and healthy future for everyone.

3. Better taste:

Contrary to conventionally farmed food, which is typically chosen before it is ready so that it can ripen during shipment, organic produce is typically selected when it is. As a result, the inherent flavours and smells of organic vegetables can flourish, making the final product taste better.

4. Promotes local farming:

By starting an organic business, you’ll encourage eating local food while benefiting small farmers. You will need to get the products from nearby farms that engage in organic farming if you want to start an organic food business. This encourages sustainable agriculture, helps regional agriculture, and keeps small farmers in business.

Requirements needed to start an organic food business?

Now that we have seen the benefits of starting an Organic business, let’s now discuss the basic requirements which are required to start an organic food business. All entrepreneurs of food businesses engaged in the organic food industry are required to apply for FSSAI Registration, certificates,  licences, and other permits.

• Food safety regulations
• Intellectual property
• FSSAI Licence
• Permits and Labelling
• Environmental regulations

Food safety regulations

To guarantee that goods are safe for consumers to consume, you must adhere to food safety rules set by the Government of India. This includes keeping your workplace tidy and hygienic, handling and storing food properly, and labelling your goods with accurate and reliable data.

Intellectual property

You could choose to use trademarks or patents to secure protection for your original business name. This will make it more difficult for anyone to “copy” or “steal”  your designs or logo.

FSSAI licence

The FSSAI regulates and maintains track of the procedures, registration, and standards necessary for the efficient running of the organic food sector in India. Organic food business owners  should operate them in a legal manner. Therefore, it is mandatory to obtain FSSAI registration and licensing. Food business operators who operate organic food business must obtain the FSSAI licence and registration mentioned below.

• Businesses who sell organic products and have annual revenue under INR 12 lakhs must register with the FSSAI with Basic Registration.
• Organic businesses that have a revenue of more than 20 crores should obtain an FSSAI Central Licence.
• Organic businesses should get an FSSAI State Licence if your organic business generates an annual revenue of more than INR 12 lakhs.

Permits and Labelling 

It is essential to carry out a thorough research and confirm that you have complied with all laws and regulations prior to starting your business. Businesses who don’t have the necessary permits could later face imprisonment or legal consequences. However, don’t lose hope! You can find lots of information to guide you through our assistance.

Environmental regulations

If you intend to employ people for your organic food company, you must ensure that you are following  all relevant labour and employment laws set by your country. This could involve items like laws governing overtime, minimum pay requirements, and workplace safety rules.

What are the documents required to start an organic food business?

For Basic registration, i.e. if any  business generates an annual revenue less than 12 lakhs, the following documents are to be submitted  to our professional experts to obtain a FSSAI certificate.

• Passport Size Photo
• Self Attested Copy of PAN Card & Aadhar Card
• Business Location – proof : If Rental Property – Rental Agreement, If Own Property – Sale Deed

For other registration i.e. if any  business generates an annual revenue more than 12 lakhs, the following documents are to be submitted  to our professional experts to obtain a FSSAI certificate.

• Import Export Code
• Photo Id Proof
• Passport Photo
• Bank statements
• Address Proof
• BluePrint and layout Plan
• List Of Food Category
• List of equipments
• NOC (No Objection Certificate) From Municipality
• List Of Directors /Partners
• Incorporation Certificate
• MOA and AOA
• Water Test Report

Conclusion

It takes commitment, hard work, and proper planning to launch an organic food business. Once these conditions have been met, your business will become successful also, promoting a healthy lifestyle, and helping local farmers. You’ll be better able to establish a prosperous and long – lasting business if you are aware of the legal requirements to start an organic food business. For more details on our professional service charges, kindly refer to our website.

FAQs (Frequently Asked Questions)

• Is there a future for organic food business in India?

In 2020, the Indian organic food industry was estimated by Expert industry Research (EMR) to be worth around USD 849.5 million. The market is anticipated  to reach a valuation of roughly USD 2601 million.

• Is organic food very expensive?

Since organic farming requires more space, expensive labour, and doesn’t receive the same subsidies given to conventional farming, organic food is typically more expensive.

• What is the validity of a FSSAI food certificate?

The FSSAI grants food industry licences that are valid over one to five years.  The cost of registering with FSSAI varies depending on the licence’s duration. The FSSAI must be renewed by every food business thirty days before the current expiry date of the food licence.