The home-based bakery
business in India has gained a tremendous growth over the last few years backed
by a strapping demand for processed foods. Nowadays many women’s in India has
started a Home-Based Bakery Business and established themselves successfully.
As, it seems that starting
a home-based bakery might sound fun and easy to do, but there are certain pros
and cons in running a home-based baking business.
Pros of a Home-Based Baking Business:
• It is easy to start as it requires very minimal capital
investment and manpower;
• There is always a place in the market for yummy baked goods;
• Free to sell either locally or online depending on the
ability of baked goods to be delivered or Shipped;
• You can use your own creativity while baking;
Cons of a Home-Based Baking Business:
• It is not necessary, that your customer also love your
cooking as your family;
• You must be aware of the demands of the market and know how
to stand upon it;
• You have to invest more of your time, in order to create
enough goods to sell to meet your income goals;
• Must have to comply with all legal requirements required by
the state law’s laws regarding the sale of food items baked from home.
• In many states it is required that baking equipment and
supplies must be differentiated from your personal cooking use, in that
scenario it is mandatory for you to comply with it;
Business Registration
Small, independent bakers
commence their business either as a proprietorship or partnership and are they
are classified as unorganized. Whereas, for Bakery chains, it is mandatory to
commence as a Private Limited
Company or limited company to help
scale-up and access various sources of funding.
Limited Liability Protection:
Home bakers commence their business in the form of a limited liability
partnership (LLP) or a one-person company (OPC) as it offers limited liability
protection for the promoters of the business, which is a most important aspect
for any food business.
Transferability: For commencing the
business of bakery, it is mandatory to obtain a Food license, GST registration,
and trademark registration. So, while incorporating as an LLP or OPC, all these
registrations would be obtained in the name of the business, thereby making the
business easily transferable to another person with all the licenses and
registration required to continue to maintain the business.
Food License
As per, The Food Safety and
Standards Authority of India norms, it is mandatory to obtain Food License to operate a home-based business as they impose a heavy penalty
for any contravention in rules; thus, operating as LLP or OPC can help mitigate
limit risks in operating a food business.
GST Registration
For Baked goods either
operating as a home-based bakery business, it is mandatory to obtain GST
registration tax authorities because as per taxation law, it is mandatory to
obtain GST registration for any business that is involved in the sale of goods
or products.
Trademark Registration
In order to ensure that the
brand is not abused or used by unauthorized personnel, it is mandatory to
obtain a trademark registration. Trademark registration would protect the brand
of the business and can help create a unique identity for the business.
Home based bakery business
gives an opportunity to women’s to fulfill their dreams into a reality and
making their passion for cooking as a source of income. We at Enterslice, an
award-winning company feel happy in helping the seeking person in complying all
legal formalities required in converting their passion into a business. For
more queries mail us at info@enterslice.com. Detail information is provided on
our website i.e. www.enterslice.com.
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