How to Start a Home-Based Bakery Business in India

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.

Conclusion

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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