What are the Benefits of Using the Kravy Restaurant POS System?

Cloud kitchens are growing rapidly in every major city of India. This trend is useful for new individuals who wish to open their food business. As the cost associated with opening a cloud kitchen business is lesser compared to a restaurant, it can be a game-changer for you. However, like every other business, before starting a cloud kitchen, you must complete your cloud kitchen registration. In this blog, Kravy has mentioned all the essential licenses required to operate a cloud kitchen in India.

What is a Cloud Kitchen?

A cloud kitchen is a new way to serve people food through takeouts or food delivery options. It is an effective way to act as a restaurant without providing dine-in facilities. Recently, cloud kitchens have increased because of the higher demand for online food ordering. Also, the cost associated with operating a cloud kitchen business is less compared to a traditional restaurant. However, to scale your cloud kitchen efficiently and make it profitable, you must improve your online visibility and brand presence on social media sites and food delivery apps by ranking better. Also, before starting your business, you must get your cloud kitchen license at the earliest.

Licenses Required to Get a Cloud Kitchen License in India

While starting a home-based cloud kitchen in India, you require a few important licenses. These licenses and registrations help you get your dream cloud kitchen setup ready with ease. Here’s a detailed explanation of all these essential licenses that will help you establish your cloud kitchen:

1. FSSAI Registration:

FSSAI(Food Safety and Standards Authority of India) license is the most important license for any food business in India. It shows that your cloud kitchen meets the requirements set by the FSSAI. It ensures that the food you prepare and serve is safe and hygienic. You can complete your FSSAI registration through their online portal by submitting essential documents like ID proof, passport-sized photo, and declaration form. If your business exceeds Rs. 12 Lakh of sales, then you need the state or central license, and below this amount, you need the basic FSSAI registration.

2. Shop and Establishment Act License:

Even if you operate the cloud kitchen from your home kitchen, you must register it under the Shop and Establishment Act License. It monitors the working hours, employee conditions, and hygiene of small enterprises. Every business that operates within the city limits needs this license. You can apply for this license through your municipal corporation or an online portal. For this registration, you’ll require business location proof and identity proof of the applicant. The application will be processed within 2-5 working days, and you’ll get one step closer to your cloud kitchen registration.

3. GST Registration:

GST(Goods and Services Tax) Registration is the most essential license for all businesses in India, and cloud kitchens are not an exception. It will enable you to legally charge GST on your sales, allowing you to claim tax credit. If your cloud kitchen generates an annual turnover of more than Rs. 20 Lakh, then it’s a must for your business. It helps you to allow tax compliance, offers input tax credit benefits, and helps you maintain transparency with customers. You’ll require basic documents like a PAN card, address proof, and bank details while applying for GST registration.

4. Health and Trade License:

The health and trade license is issued by the local municipal corporation, and it allows you to operate a business within the city limits. It is an essential license to complete your cloud kitchen registration in India. And it is needed for home-based cloud kitchens, too. This license helps you to show your business is legal and that it complies with the local regulations. You can obtain this registration from your local municipality office by submitting the essential documents like the business location proof, business details, and personal details. The registration will be completed within 7-14 working days.

5. Fire Safety License:

The Fire Department NOC (No Objection Certificate) is much needed for a home-based cloud kitchen setup. It ensures that proper safety is maintained in your kitchen environment. Also, it helps you ensure that the fire safety standards are met and your kitchen has essential fire-fighting measures. You can get this license from the local fire department office in your city. You’ll require a kitchen layout plan and safety compliance details to obtain this license. It will help you to complete your cloud kitchen licenses. There is no/basic cost associated with obtaining the fire safety license, based on your city.

All these licenses will enable you to complete your cloud kitchen license in India and help you run your business without any issues. So, get all these licenses as soon as possible, use a good POS system, run your cloud kitchen without any trouble, and grow your sales massively.

Why are These Licenses Essential?

All these licenses act as the basic requirement and are considered basic cloud kitchen licenses in India. It helps you to abide by government regulations and showcase your brand as a reliable and safe business. The fine for non-compliance can range between Rs. 1 Lakh to 10 Lakh, so it’s better to abide by the laws than to face the charges. Also, having proper compliance helps you to build customer trust in your business. It is observed that more than 70% of businesses have observed increased customer loyalty due to this simple action. So, register your cloud kitchen under all the above-mentioned licenses and kickstart your business without any problems.

Conclusion

That was all the essential information related to cloud kitchen licenses in India. So, if you wish to open your cloud kitchen, then apply for the above-mentioned licenses to abide by the compliances. It will help you build trust among your customers, grow your business, and stay relevant in the growing competition.

Also, use a POS system to boost your profits with technology, Kravy is the best POS for this purpose. It offers new-age benefits which will help you to scale your cloud kitchen business massively. So, don’t waste your time, obtain all the licenses, opt for the best POS system – Kravy, and see your business scale higher! Book a call now, and let’s partner up together!