Understanding the Online Food Delivery Business Model

Online food delivery businesses operate either as:

1. Aggregator Platforms (like Swiggy or Zomato) — connecting restaurants to customers.
2. Restaurant + Delivery Model — owning both the kitchen and the delivery operations.
3. Cloud Kitchen Model — serving food exclusively through online orders, without dine-in.

Whichever model you choose, legal compliance is mandatory to ensure smooth registration on food platforms and avoid future penalties.

Licenses and Registrations Required to Start a Food Delivery Business in India

Here’s a breakdown of the key documents and licenses required to operate your food business legally.

FSSAI Registration / License

The Food Safety and Standards Authority of India (FSSAI) license is the most essential requirement for all food-related businesses.

Why You Need It:
It ensures that your food is safe and hygienic for consumption.

Types of FSSAI Registration:

• Basic Registration – For small food businesses with turnover < ₹12 lakhs.
• State License – For medium-sized units with turnover between ₹12 lakhs and ₹20 crores.
• Central License – For businesses operating in multiple states or turnover > ₹20 crores.

Documents Required:

• PAN & Aadhaar of owner/director
• Proof of business premises (rental agreement or ownership document)
• Food safety management plan
• NOC from local authority

Kanoons offers complete FSSAI registration support — from documentation to approval.

 Trade License (Municipal Corporation)

A Trade License from your local municipal body (GHMC, BBMP, etc.) is required to carry out food business operations legally within city limits.

Purpose: It certifies that your business complies with local civic, hygiene, and safety regulations.

Kanoons helps file and renew your Trade License under the respective state and local authority.

Shop and Establishment Registration

Every business that employs staff — even delivery boys — must register under the Shops and Establishments Act of their state.

Why It’s Needed:

• Regulates working hours, employee welfare, and wage compliance.
• Mandatory for hiring and onboarding delivery partners.

Kanoons can help you obtain registration online under the Telangana or other state labour departments.

GST Registration

If your business turnover exceeds ₹20 lakhs (₹10 lakhs for special category states), GST registration is mandatory.

Why It Matters:

• To collect and remit taxes on food sales.
• To list your business on platforms like Swiggy or Zomato, which require a valid GSTIN.

Kanoons offers fast online GST registration and filing services starting from ₹999 only.

Udyam / MSME Registration

Registering your business as an MSME (Micro, Small & Medium Enterprise) through Udyam Registration gives access to government benefits, subsidies, and easier bank loans.

Kanoons can get your MSME registration done online in 24 hours.

Labour License

If you employ more than 10 people (including delivery agents or kitchen staff), a Labour License from the Labour Department is required.

Purpose:
Ensures employee welfare, payment of wages, and adherence to safety norms.

Kanoons helps businesses obtain Labour Licenses under the Contract Labour (Regulation and Abolition) Act, 1970.

Fire and Pollution NOC

Depending on your location and kitchen type, you may need:

• Fire Department NOC (for safety)
• Pollution Control Board Consent (for waste disposal and exhaust systems)

Kanoons assists with NOC applications and compliance documentation as per state requirements.

Business Incorporation Certificate

Mandatory for: Companies, LLPs, or Partnerships.
Issued by: Ministry of Corporate Affairs (MCA).
Purpose: Provides legal identity and enables PAN, GST, and FSSAI registration.
Apply through: Click Here

Step-by-Step Process to Start a Food Delivery Business

1. Choose Your Business Model – Cloud kitchen, aggregator, or restaurant-based delivery.
2. Register Your Business – Private Limited Company / LLP / Proprietorship (done via Kanoons).
3. Apply for FSSAI License – With proper documentation and food safety plan.
4. Obtain Trade & Labour Licenses – Through local municipal and labour departments.
5. Get GST & Udyam Registration – For tax and business recognition.
6. Register with Swiggy / Zomato – Using valid documents like FSSAI, GSTIN, and Trade License.
7. Launch Your Brand – Create your menu, packaging, and delivery operations.
8. Stay Compliant – File returns, renew licenses, and maintain records.

Swiggy & Zomato Onboarding Process

Once all licenses are ready, onboarding to Swiggy or Zomato involves the following steps:

1. Sign Up:
   Visit Swiggy Partner or Zomato Partner portal and fill in your business details.
2. Upload Documents:
   • FSSAI License/Registration Certificate
   • Trade License / Shops & Establishment License
   • GST Registration Certificate
   • PAN Card
   • Cancelled Cheque / Bank Proof
   • Menu and Food Images
3. Restaurant Verification:
   Swiggy/Zomato teams verify your documents and inspect hygiene & safety conditions.
4. Menu Setup & Activation:
   After approval, your restaurant goes live on the app, ready to accept orders.

Where Each License Is Required

Tips to Maximize Profits & Compliance

• Maintain FSSAI hygiene audits regularly
• Keep renewal reminders for licenses through professional assistance
• Optimize Swiggy/Zomato commission rates based on volume
• Use packaging with FSSAI number to build brand trust
• Keep staff covered under ESI & EPF (Labour compliance)
• Maintain proper accounting and GST filing