How to Start a Franchise Business in India?

Mar 28, 2025
Private Limited Company vs. Limited Liability Partnerships

Starting a franchise business in India is a lucrative opportunity for aspiring entrepreneurs. Franchising allows individuals to operate a business under an established brand with a proven business model. It offers benefits like brand recognition, operational support, and reduced risk compared to starting an independent venture.

This blog will walk you through everything you need to know about franchising in India.

Table of Contents

What Is The Meaning of Franchising a Business?

Franchising is a business model where a franchisor grants the rights to an individual (franchisee) to operate under its brand, using its products, services, and business processes. The franchisee pays a fee and agrees to operate under the franchisor’s guidelines in exchange for brand licensing, training, operational support, and marketing assistance.

The franchising model benefits both parties:

  • Franchisor Benefits: Rapid expansion, increased brand reach, and revenue from franchise fees.
  • Franchisee Benefits: Access to a recognised brand, reduced startup risk, and operational guidance.

Key aspects of franchising include:

  • Brand Licensing: The franchisee gets permission to use the franchisor's brand name and trademarks.
  • Operational Support: Training, marketing, and business strategy support are provided.
  • Profit-sharing Agreements: Franchisees pay royalties or a percentage of revenue to the franchisor.

Types of Franchises

Franchises can be categorised based on their structure and operational model:

Product Distribution Franchise:

  • Franchisee sells the franchisor’s products under its brand.
  • Examples: Automobile dealerships (Maruti Suzuki), and soft drink bottlers (Coca-Cola).

Business Format Franchise:

  • Franchisee adopts the entire business model, including operations, branding, and marketing.
  • Examples: McDonald’s, Domino’s, KFC.

Manufacturing Franchise:

  • Franchisee manufactures and sells the franchisor’s products under its brand name.
  • Example: Food and beverage brands allowing third-party bottlers.

Job Franchise:

  • A low-cost model where individuals operate small-scale service businesses.
  • Examples: Cleaning services, travel agencies, real estate consultancy.

How Long Does It Take To Franchise a Business?

Franchising a business typically takes between six months to two years, depending on factors like:

  • Industry type and regulatory requirements.
  • Business readiness and operational scalability.
  • Development of legal and training documents.
  • Marketing efforts to attract franchisees.

How Much Should It Cost To Franchise a Business?

The cost to franchise a business can vary significantly based on factors like industry, business model, and support provided. On average, franchising a business may cost between ₹5 lakh to ₹50 lakh or more in India. Key expenses include:

  • Franchise Fee: ₹2 lakh to ₹10 lakh (varies by brand reputation).
  • Legal and Registration Fees: ₹50,000 to ₹2 lakh.
  • Training and Support Costs: ₹1 lakh to ₹5 lakh.
  • Marketing and Branding Expenses: ₹1 lakh to ₹3 lakh.
  • Infrastructure Setup: Varies depending on the business type.

Additional factors like franchise location, infrastructure requirements, and marketing strategy impact the overall investment.

Advantages of Franchising a Business

  1. Rapid Expansion: Scale business operations quickly with minimal capital investment.
  2. Lower Financial Risk: Franchisees fund their business setup, reducing financial burden.
  3. Brand Recognition: Established branding makes it easier to attract customers.
  4. Operational Support: Franchisees receive training, marketing, and business guidance.
  5. Access to Motivated Franchisees: Entrepreneurs invest time and money, ensuring dedication to success.

Disadvantages of Franchising a Business

  1. Loss of Control: Franchisees operate independently, which can lead to inconsistencies.
  2. Reputation Risk: Poorly managed franchises can damage brand image.
  3. Legal & Financial Complexity: Requires detailed agreements and ongoing compliance.
  4. Ongoing Training & Support: Continuous investment in franchisee development is necessary.

Franchise Vs Licensing: What’s The Difference?

Franchising Licensing
Control High Control Low control
Legal obligations Extensive with detailed agreements Less strict, focussed on intellectual property rights
Investment Higher due to training, support, and operational costs Lower primarily for brand usage
Brand usage Franchisee must follow strict brand guidelines Licensee can identify how the brand can be used
Revenue model Royalties, franchise payments, ongoing payments One-time or periodic licensing fees

How to Start a Franchise Business - 8 Key Steps

Step 1: Determine If Franchising is Right For Your Business

Before diving into franchising, evaluate whether your business is scalable, profitable, and replicable. Ask yourself:

  • Is there consistent demand for my product or service?
  • Can my business model be easily duplicated in different locations
  • Do I have strong branding and operational processes in place?

Not all businesses are fit for franchising. A successful franchise model requires a proven track record, solid profit margins, and strong brand appeal to attract potential franchisees.

Step 2: Protect Your Business’s Intellectual Property

Your brand is one of your most valuable assets. Before offering franchises, secure trademarks, copyrights, and proprietary processes to prevent misuse and ensure brand consistency.

Step 3: Prepare Your Franchise Disclosure Document (FDD)

The Franchise Disclosure Document (FDD) is a legal document that provides prospective franchisees with full transparency about their business. This document must comply with franchise laws and typically includes:

  • Franchise fees and ongoing costs
  • Training and support provided
  • Franchisor and franchisee responsibilities
  • Earnings potential (if disclosed)
  • Legal obligations and dispute resolution process

A well-structured FDD builds trust with potential franchisees and helps you stay compliant with franchise laws.

Step 4: Draft a Franchise Agreement

The franchise agreement is a legally binding contract outlining the rights and responsibilities of both the franchisor (you) and the franchisee. Key elements to include:

  • Operational guidelines – How franchisees must run the business
  • Fee structure – Initial franchise fees, royalties, and marketing fund contributions
  • Territory rights – The defined area where the franchisee can operate
  • Training and support – What assistance franchisees will receive
  • Exit clauses – Terms under which a franchise can be sold or terminated

This document ensures both parties are aligned and protects your brand from misuse.

Step 5: Register Your Company

Depending on your state and region, you may need to register your franchise with government authorities before selling franchise units. Registration is not mandatory, but it is required to obtain GST registration depending on the turnover.

Head over to Razorpay Rize to Register your Company.

Step 6: Compile an Operation Manual

A franchise operations manual is a step-by-step guide that helps franchisees run the business successfully while maintaining brand consistency. It should cover:

  • Day-to-day business processes
  • Hiring and training staff
  • Customer service guidelines
  • Marketing and advertising strategies
  • Financial management and reporting

Step 7: File or Register Your FDD

Once your FDD is finalised, keep it securely stored for easy access and updates as needed. While the FDD is a mandatory document, filing requirements vary by state.

Step 8: Set Strategy To Achieve Your Sales Goal

Develop marketing and recruitment strategies to attract the right franchise partners. The strategy should be tailored to your business, community, and growth objectives. Here are some effective ideas to consider:

  • Provide a referral incentive for those who bring in qualified franchisee applicants.
  • Develop a strategic marketing plan from the start to capture attention.
  • Recruit sales professionals who understand your business and its story.

5 Strategies to Help You Succeed at Franchising

  1. Maintain Brand Consistency: Implement strict guidelines for uniformity across locations.
  2. Select the Right Franchisees: Screen candidates for skills, experience, and commitment.
  3. Provide Ongoing Training & Support: Regularly update franchisees with best practices.
  4. Implement Effective Marketing Strategies: Invest in advertising and localised promotions.
  5. Ensure Strong Financial Management: Monitor franchise performance and optimize cost structures.

Case Studies of Successful Franchise Businesses

Franchising is a proven business model that allows entrepreneurs to leverage established brands and systems for success. Below are examples of successful franchise businesses, showcasing their revenue, profit margins, and operational highlights.

1. McDonald's

  • Industry: Quick-Service Restaurant (QSR)
  • Investment: ₹6–14 crores
  • Profit Margin: 50–60%
  • Break-even Period: 4–5 years
    McDonald’s is one of the most profitable franchises globally due to its standardized operations and strong brand recognition. In India, its franchise model offers high footfall and consistent demand, making it a lucrative investment.

2. Baskin Robbins

  • Industry: Ice Cream and Dessert
  • Investment: ₹10–20 lakhs
  • Profit Margin: 50–60%
  • Break-even Period: 6–12 months
    With over 800 outlets in India, Baskin Robbins has built a strong presence in the dessert market. Its diverse flavors and year-round demand ensure steady sales and excellent returns for franchisees.

3. Haldiram

  • Industry: Food and Snacks
  • Investment: ₹30 lakhs–₹6 crores (depending on store format)
  • Profit Margin: 50–60%
  • Break-even Period: 2–3 years
    Haldiram is a trusted name in Indian snacks and sweets. Its franchise model offers multiple formats, including quick-service restaurants and dine-in outlets, ensuring high profitability backed by a loyal customer base.

4. Marco’s Pizza

Marco’s Pizza achieved remarkable growth with a revenue increase of 23.5% in one year by opening 113 stores. The brand focuses on strategic revenue-boosting approaches, making it one of the fastest-growing pizza franchises globally.

5. Lenskart

  • Industry: Eyewear Retail
  • Investment: ₹25 lakhs
  • Profit Margin: Approx. 33%
    Lenskart is India’s largest eyewear brand, offering trendy products such as prescription glasses and sunglasses. With innovative features like "Try Before You Buy," its franchise model generates average monthly sales of ₹9 lakhs, making it ideal for urban markets

Final Thoughts

Franchising can be a great way to start a business without building everything from scratch. You get a known brand, a proven business model, and ongoing support but it’s not a shortcut to success. It still takes effort, investment, and commitment to make it work.

The key is choosing the right franchise. Think about what fits your skills, budget, and long-term goals. A great brand in the wrong location or with poor financial planning can still struggle. Do your homework, understand the costs, and be ready to follow the franchisor’s guidelines.

Frequently Asked Questions

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Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

How do I open up my own franchise?

To start your own franchise-

  • You’ll need to create a business model that can be replicated. This involves building a strong brand, developing detailed operational processes, and ensuring your business is profitable.
  • Next, you’ll need to register as a franchisor, create legal agreements (Franchise Disclosure Document & Franchise Agreement), and establish a support system for franchisees.
  • Once everything is in place, you can start recruiting franchise partners.

Do I need to register my franchise?

Yes, in most countries, you need to register your franchise before offering it to potential franchisees. The requirements vary by region—some require a Franchise Disclosure Document (FDD) and legal agreements, while others may have additional licensing requirements.

Which franchise is best for beginners?

For beginners, it’s best to choose a franchise with low initial investment, strong brand recognition, and comprehensive support. Some beginner-friendly franchises include:

  • Food & Beverage: Subway, Dunkin’
  • Retail: Miniso, FirstCry
  • Education & Coaching: Kumon, The Learning Experience
  • Service-Based: Urban Company

Look for franchises with a simple operating model and strong training programs to make the transition smoother.

Which franchise is most profitable?

Profitability depends on location, investment, and management. Before investing, analyse franchise fees, profit margins, and ongoing costs to determine the best fit.

Are franchise fees monthly?

Most franchises charge ongoing royalty fees, which can be monthly, quarterly, or annually. These fees are typically a percentage of your revenue (ranging from 4% to 12%) or a fixed amount. Some franchises also charge additional marketing or operational fees.

Is licensing an alternative to franchising?

Yes, licensing can be an alternative to franchising, but it’s a different business model. In licensing, you grant permission to use your brand, trademark, or product without controlling business operations. In franchising, you provide a complete business model, training, and support while maintaining control over operations. Licensing offers more flexibility but less oversight, while franchising ensures brand consistency but comes with more regulations.

Related Posts

Partnership Deed for Firms in India: Format, Fees, Validity

Partnership Deed for Firms in India: Format, Fees, Validity

A Partnership Deed is a legal document that outlines the rights, responsibilities, and obligations of individuals forming a partnership.

Typically drafted at the beginning of the partnership, the deed includes essential details such as the business name, purpose, and location. It also incorporates various clauses that highlight details about the partners, including aspects such as profit-loss sharing, salary, interest on capital, drawings, and the procedures for admitting a new partner.

In this blog, we’ll talk about how the Partnership Deed acts as the foundation for all partnership operations.

Table of Contents

Format of a Partnership Deed

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The format of a partnership deed may vary based on the specific requirements of the partners and the nature of the business. However, a typical partnership deed includes the following essential elements:

  • Name of the Partnership:
    The official business name under which the partnership operates is stated, along with the physical address where the primary business activities occur. This section also highlights the duration of the partnership firm alongside the date of the commencement.
  • Details of the Partners:
    This section includes the full name, address, and relevant particulars of the Individuals participating in the Partnership.
  • Purpose:
    Here, the nature and scope of the business activities conducted by the partnership is clearly stated. The firm shall have the power to fulfill the objectives of thecompany and conduct any such lawful business activities.
  • Capital Contribution:
    The total capital of the firm and the individual share contributed by each partner are to be mentioned here. The contribution can be in cash, goods, or property on agreed values.
  • Profit and Loss Sharing:
    It clearly articulates the agreed-upon ratio or percentage in which profits and losses will be distributed among the partners.
  • Financial Decisions:
    It includes information such as the partners' salary and commission, permissive drawings from the firm for each partner, the interest payable to the firm on these drawings, partnership loans, and other relevant details.
  • Admission and Retirement of Partners:
    This part outlines the criteria and process for admitting new partners into the business. Similarly, it details the procedures for the retirement or withdrawal of existing partners.
  • Dispute Resolution:
    Procedures for resolving disputes among partners are established. This may include mechanisms for mediation or arbitration to address conflicts and maintain a harmonious partnership.
  • Dissolution:
    It states the conditions and procedures for the dissolution of the partnership which highlights the distribution of assets, settlement of liabilities, and the overall process of winding up the business.
  • Witnesses and Signatures:
    The partnership deed is formally executed with the signatures of all partners, and done in the presence of witnesses.

How to draft a Partnership Deed?

A partnership deed can be a verbal or written agreement outlining the rights, responsibilities, profit-sharing, and other obligations of the partners.

While it can be recorded verbally, it is highly advisable to formalize a written partnership deed with the Registrar of Firms as it aids in resolving potential disputes. It also proves beneficial for tax purposes and ensures the formal registration of the partnership firm.

  • The Partnership Deed, formulated by the partners, must be executed on stamp paper with a minimum value of Rs. 200, as per the Indian Stamp Act.
  • Each partner should retain a copy of the partnership deed for future reference.
  • Once stamped, the Partnership deed is attached with the application to the Registrar of Firms for formal registration and legal validation.

As per the Partnership Act, Registration of Partnership Firms is optional, but if you still choose to register your firm-

The application should be accompanied by essential documents, including a duly filled affidavit, a certified true copy of the Partnership Deed, and proof of ownership or a rental/lease agreement for the main business location.

Validity of the Partnership Deed

The validity of the firm is mentioned in the deed, whether it's for a limited period, for a specific project or for an unlimited period.

Note: A partnership deed that has been notarized alone does not hold legal validity in the event of legal disputes. However, if the partnership firm is formally registered with RoF, the partnership deed will be recognized as having legal standing.

Fees for the Partnership Deed in India

The Partnership Deed must be executed on a stamp paper with a minimum value of Rs. 200, as per the Indian Stamp Act.

However, Partnership registration fees vary among states due to different compliance requirements and stamp duty rates. The cost for registering a Partnership Firm ranges from Rs. 500 to Rs. 3000.

Note: Stamp duty is calculated based on partner contributions and follows state-specific regulations.

Alterations in the Partnership Deed

Partners have the flexibility to modify, alter, or change the partnership deed through mutual agreement. All partners are required to sign the amended deed.

Subsequently, the modified partnership deed should be registered at the Sub-Registrar's office, where the original deed was registered. Additionally, it is necessary to submit the modified deed to the Registrar of Firms for record-keeping purposes.

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Register your One Person Company in just 1,499 + Govt. Fee

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Register your Limited Liability Partnership in just 1,499 + Govt. Fee

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Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

FSSAI Registration and License Process Explained

FSSAI Registration and License Process Explained

If you’re running a food business in India, chances are you’ve heard about FSSAI. But what exactly is it, and why is it so important? FSSAI stands for the Food Safety and Standards Authority of India- the apex regulatory body responsible for ensuring food safety and hygiene standards across the country.

For any food-related business operating in India, obtaining an FSSAI registration or license is mandatory. This ensures that the business complies with the Food Safety and Standards Act, 2006, enhancing consumer trust and legal credibility.

In this blog, we’ll walk you through everything you need to know about FSSAI, from types of licenses and who needs them, to how to apply, what documents you need, and even penalties if you don’t comply.

Table of Contents

FSSAI Registration

FSSAI Registration is the basic license issued to small-scale food businesses by the state food safety authorities. It applies primarily to small food business operators (FBOs) whose turnover falls below a certain threshold and who operate within a single state.

This registration is essential to legally operate a food business and ensures compliance with food safety norms. However, for larger businesses or those operating across multiple states, an upgraded license (State or Central License) is required.

Food Business Operators Who Need FSSAI Registration?

The following food businesses typically require FSSAI Registration:

  • Small Manufacturers: Small-scale producers of food items with limited turnover.
  • Transporters: Entities involved in the transportation of food within the state.
    Retailers: Small shops, grocery stores, or vendors selling food products directly to consumers.
  • Small Food Businesses: Street food vendors, hawkers, or home-based food businesses.
  • Medium Food Businesses: Hotels, Restaurants & Bars

Types of FSSAI Registration

Beyond legal compliance, filing ITR offers several advantages:

Type of License Turnover Limit Operational Scale Issued By
Basic Registration Up to INR 12 Lakhs annually Small food businesses within one state State authority
State License INR 12 Lakhs to 20 Crores Medium-sized businesses operating within a state State authority
Central License Above INR 20 Crores Large businesses, importers, exporters and interstate operations Central authority

Benefits of Obtaining an FSSAI Food License

Obtaining an FSSAI license offers multiple advantages:

  • Consumer Trust: Shows commitment to food safety, increasing customer confidence.
  • Legal Compliance: Avoids penalties and legal issues by following regulations.
  • Business Expansion: Facilitates scaling operations across states and international markets.
  • Brand Credibility: Enhances brand image by adhering to recognised safety standards.
  • Access to New Markets: Many retailers and e-commerce platforms require FSSAI certification.

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FSSAI Registration Eligibility

Below is the eligibility criteria for FSSAI registration:

  • Annual turnover up to ₹12 lakhs.
  • Operates only within a single state.
  • Includes small-scale manufacturers, traders, retailers, hawkers, and temporary stall owners.

FSSAI License Eligibility

Businesses requiring State or Central Licenses typically fulfil these conditions:

  • Annual turnover between ₹12 lakhs and ₹20 Crores (State License).
  • Annual turnover exceeding ₹20 crores (Central License).
  • Operations across multiple states or involved in import/export.
  • Large-scale food processors and manufacturers.

Food Capacity Limit Required for Obtaining FSSAI Registration

License Type Production/Handling Capacity
Basic Registration Up to 100 kg or 100 litres per day
State License Between 100 kg/litres to 2 tons per day
Central License Above 2 tons per day

Note: These limits may vary based on specific food categories and local regulations.

Documents Required for Obtaining the FSSAI Registration/License

Common documents needed include:

  • Identity Proof (Aadhar, PAN Card)
  • Address Proof of Business Premises (Rent Agreement/Utility Bill)
  • Passport-sized Photographs of the Applicant
  • Certificate of Incorporation (for companies)
  • Food Safety Management Plan or Statement of Food Products
  • NOC from the local municipality or health department
  • Proof of possession of premises (ownership or lease)

How to Apply for FSSAI Registration Online?

Applying for an FSSAI Registration or License online is a straightforward process — and the best part is, you can do it all from the comfort of your home or office.

Step 1: Visit the Official FSSAI Website

Head over to the official Food Safety Compliance System (FoSCoS) portal: https://foodlicensing.fssai.gov.in

Step 2: Create an Account

Click on “Sign Up” and fill in your details like name, mobile number, email ID, and state of operation. Once registered, you’ll receive login credentials via email or phone.

Step 3: Fill in the Application Form

After logging in, choose the appropriate license type based on your business size and turnover (Basic, State, or Central). Then, fill in the required details such as:

  • Business name and address
  • Type of food business (manufacturer, distributor, caterer, etc.)
  • Contact information
  • Business turnover and food handling capacity

Step 4: Upload Required Documents

Upload scanned copies of all the necessary documents.

Step 5: Pay the Application Fee

Once the form is complete and documents are uploaded, proceed to pay the applicable fee online. The amount depends on the license type and duration selected (1–5 years).

Step 6: Submit the Application

Double-check all details before clicking “Submit”. Once submitted, you’ll receive an application reference number which you can use to track your status.

Step 7: Track Your Application Status

Use the “Track Application” feature on the dashboard to monitor progress. You’ll receive notifications if additional info or documents are required.

Once submitted, your application will be reviewed by the local food safety officer. They may conduct a physical inspection (for licenses) or approve the application directly (for Basic Registrations). Upon approval, you’ll receive your FSSAI certificate online.

FSSAI License Cost & Validity

License Type Fee Structure Validity
Basic Registration INR 100 per year 1 to 5 years
State License INR 2000 to 5000 per year 1 to 5 years
Central License INR 7500 per year 1 to 5 years

Costs may vary based on license duration and type.

FSSAI Registration Status

How to Check Status:

  1. Visit the FSSAI portal.
  2. Log in using registered credentials.
  3. Navigate to the “Application Status” section.
  4. Enter your Application/Registration number.
  5. View the current status (Pending, Approved, Rejected).

FSSAI Penalty and Offences

The Food Safety and Standards Authority of India (FSSAI) takes food safety very seriously — and rightly so. Non-compliance can lead to hefty penalties, legal action, or even imprisonment, depending on the nature and severity of the offense.

Here’s a breakdown of common offences under the Food Safety and Standards Act, 2006, and their corresponding penalties:

Offense Penalty
Operating without a license Fines up to ₹5 lakh or jail time
Selling adulterated or misbranded food Fines up to ₹10 lakh
Selling unsafe or substandard food Imprisonment and fines
Not following food safety standards Penalties depend on the violation

Renewal of FSSAI License

Renew your license at least 30 days before it expires. The process is similar to applying for a fresh — just log in, fill out renewal forms, upload updated documents, and pay the fees. Missing renewal deadlines can lead to fines or even suspension of your license.

FSSAI License for Cloud Kitchen

Cloud kitchens, operating without a physical dine-in space, are also required to obtain FSSAI licenses. Typically, they fall under:

  • Basic Registration: If turnover and scale are small.
    State License: For larger cloud kitchens with higher turnover.

The application process is the same, focusing on food safety management specific to cloud kitchens.

Conclusion

FSSAI registration and licensing are essential for any food business in India. They help keep your customers safe, build your brand, and keep you on the right side of the law.

So, if you're running any kind of food business, be it a small catering outfit, a packaged snack brand, or an export-oriented manufacturing unit, FSSAI must be part of your growth strategy. It’s a small step toward compliance, ensuring that you’re meeting the highest standards of food safety and hygiene.

Frequently Asked Questions

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Register your Private Limited Company in just 1,499 + Govt. Fee

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Register your One Person Company in just 1,499 + Govt. Fee

Register your business
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Register your Business starting at just 1,499 + Govt. Fee

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Register your Limited Liability Partnership in just 1,499 + Govt. Fee

Register your business

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


One Person Company
(OPC)

1,499 + Govt. Fee
BEST SUITED FOR
  • Freelancers, Small-scale businesses
  • Businesses looking for minimal compliance
  • Businesses looking for single-ownership

Private Limited Company
(Pvt. Ltd.)

1,499 + Govt. Fee
BEST SUITED FOR
  • Service-based businesses
  • Businesses looking to issue shares
  • Businesses seeking investment through equity-based funding


Limited Liability Partnership
(LLP)

1,499 + Govt. Fee
BEST SUITED FOR
  • Professional services 
  • Firms seeking any capital contribution from Partners
  • Firms sharing resources with limited liability 

Frequently Asked Questions

What is the difference between an FSSAI license and registration?

Proprietorship compliance refers to the set of legal, financial, and tax-related requirements that a sole proprietorship must fulfil. This includes:

  • FSSAI Registration is for small food businesses with an annual turnover of up to ₹12 lakh. It’s a basic registration issued by the State Authority.
  • An FSSAI License is required for larger businesses and is categorised into:
    • State License (₹12 lakh–₹20 crore turnover, within one state)
    • Central License (above ₹20 crore turnover or interstate operations)

Is GST compulsory for an FSSAI license?

No, GST is not mandatory to obtain an FSSAI license or registration. However, for certain food businesses, especially those that sell online or supply to other businesses, having a GST registration can be beneficial or even required.

Who is eligible for FSSAI?

Any Food Business Operator (FBO) involved in manufacturing, processing, storing, distributing, or selling food in India is eligible and required to get FSSAI registration or a license. This includes:

  • Home-based food sellers
  • Restaurants, cafes, and cloud kitchens
  • Food processors and repackers
  • Online food sellers
  • Importers/exporters of food products

What is What is the minimum turnover for an FSSAI license?the turnover limit for a proprietorship?

  • Basic FSSAI Registration: Turnover up to ₹12 lakh/year
  • State License: Turnover between ₹12 lakh and ₹20 crore/year
  • Central License: Turnover above ₹20 crore/year or operating in multiple states

Is an FSSAI license mandatory for small businesses?

Yes. Even small food businesses, such as home kitchens, hawkers, and petty retailers, must obtain Basic FSSAI Registration. It's a legal requirement under the FSS Act, 2006, to ensure food safety.

What is the fee for an FSSAI license for 5 years?

Fees depend on the type of license:

  • Basic Registration: ₹100/year
  • State License: ₹2,000 to ₹5,000/year
  • Central License: ₹7,500/year

Is an FSSAI license mandatory for a home kitchen?

Yes, if you are preparing food at home for commercial sale (e.g., home tiffin services, catering), you must register with FSSAI under Basic Registration.

How can I check if my FSSAI license is real or fake?

Yes, if you are preparing food at home for commercial sale (e.g., home tiffin services, catering), you must register with FSSAI under Basic Registration.

  • Visit the FSSAI License Check Portal
  • Enter your FSSAI License or Registration Number to verify details like:
    • Business name
    • Validity
    • Type of license
    • Status (Active/Expired)

Akash Goel

Akash Goel is an experienced Company Secretary specializing in startup compliance and advisory across India. He has worked with numerous early and growth-stage startups, supporting them through critical funding rounds involving top VCs like Matrix Partners, India Quotient, Shunwei, KStart, VH Capital, SAIF Partners, and Pravega Ventures.

His expertise spans Secretarial compliance, IPR, FEMA, valuation, and due diligence, helping founders understand how startups operate and the complexities of legal regulations.

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How to Set Up a Joint Venture in India: Process, Types & Legal Structure

How to Set Up a Joint Venture in India: Process, Types & Legal Structure

India is rapidly becoming a preferred destination for U.S. businesses looking to expand internationally. With its fast-growing economy, a population of over 1.4 billion, and a dynamic startup and manufacturing ecosystem, India presents vast opportunities for cross-border partnerships. For American companies aiming to enter this vibrant market, Joint Ventures (JVs) serve as a strategic and flexible route, offering the advantages of shared risk, local insight, and streamlined regulatory navigation.

In this guide, we’ll cover everything you need to know about setting up a joint venture in India from understanding the different types and structures of JVs to the registration process, legal documentation, compliance needs, and common challenges.

Table of Contents

Registration as a Joint Venture in India

Setting up a joint venture in India involves formal collaboration between two or more parties, combining resources, capital, and expertise to achieve a shared business objective. JVs can be formed in two primary structures:

  • Incorporated Joint Ventures (via a company or LLP)
  • Unincorporated/Contractual Joint Ventures

To register a joint venture in India, the following key legal steps must be followed:

  1. Choose the type of entity. It can be company (Private or Public), Limited Liability Partnership (LLP), or Contractual Agreement
  2. Draft a joint venture agreement, outlining roles, responsibilities, profit-sharing, management structure, and exit clauses
  3. Obtain regulatory approvals, including those under FDI norms, if applicable
  4. Register the entity with the Ministry of Corporate Affairs (MCA) or relevant authority

A joint venture enables both Indian and foreign parties to leverage each other’s market presence, networks, and operational strengths, making it a highly strategic mode of business entry.

Types of Joint Ventures in India

India allows for two major forms of joint ventures, based on the nature of the partnership:

1. Equity-Based Joint Ventures

These involve the creation of a new legal entity or partnership where both parties invest capital and own equity shares.
Ideal For:

  • Manufacturing collaborations
  • Retail expansion (e.g., Walmart-Flipkart)
  • Technology co-development

2. Contractual Joint Ventures

In this structure, parties enter into a legally binding agreement without forming a new entity.
Ideal For:

  • Project-based collaborations
  • Service agreements or licensing deals
  • Research and development partnerships

Joint Venture Registration in India in the Form of Corporate Entity

There are two ways to form a corporate JV in India:

1. Incorporating a New Company

A new company is registered with shared ownership among JV partners. This is the preferred method as it offers full flexibility in defining the shareholding, governance, and structure.

2. Collaborating with an Existing Company

Here, one party acquires equity in an existing Indian company, forming the JV. While faster, this option may involve challenges in aligning with the existing company's operations or culture.

Both forms require:

  • DIN and DSC for directors
  • Name approval from MCA
  • Filing incorporation forms (SPICe+)
  • Drafting MoA and AoA reflecting JV terms

Joint Venture Registration in India in the Form of Limited Liability Partnership

An LLP-based JV offers the benefits of limited liability with simpler compliance norms.

Two Methods:

  1. Incorporating a New LLP
    • Partners bring in capital and expertise
    • Requires LLP Agreement, DPINs, DSCs, and MCA registration

  2. Transferring Stake in an Existing LLP
    • One partner joins an existing LLP and receives a stake
    • Involves amending the LLP Agreement and notifying the ROC

LLPs are ideal for service-based sectors or small-scale collaborations where flexible operations and tax efficiency are priorities.

Joint Venture Registration in India in the Form of Contractual Agreement

In this setup, no new entity is created. Instead, parties sign a detailed JV agreement outlining:

  • Objectives and Scope
  • Capital Contribution or Resource Sharing
  • Governance and Management Roles
  • Duration of Partnership
  • Termination and Dispute Resolution Clauses

This model works well in infrastructure projects, technology licensing, or temporary business collaborations. Legal enforceability is key, and such agreements must be vetted thoroughly to avoid ambiguities.

Advantages of Joint Ventures

Joint ventures offer several strategic advantages for U.S. businesses entering India:

  • Market Access
  • Local Expertise
  • Shared Risk and Resources
  • FDI Compliance
  • Faster Market Entry

Do’s and Don’ts While Entering into a Joint Venture

Do’s

  • Conduct in-depth due diligence on potential partners
  • Align on strategic goals and exit options early on
  • Involve experienced legal and tax advisors
  • Keep open lines of communication and reporting
  • Clearly define IP ownership and dispute resolution processes

Don’ts

  • Don’t rush into agreements without thorough partner vetting
  • Don’t rely solely on verbal understandings- document everything
  • Don’t ignore cultural and operational differences
  • Don’t overlook local compliance, especially with FDI and tax laws
  • Don’t neglect exit planning, even in early discussions

Steps Involved in Registration of Joint Venture Agreement

  1. Identify and Evaluate JV Partner
  2. Conduct Feasibility Study and Risk Assessment
  3. Draft a Joint Venture Agreement (with roles, capital, IP, and exit terms)
  4. Choose Legal Structure (Company, LLP, or Contractual)
  5. Register Entity with MCA or execute agreement
  6. Obtain FDI and Regulatory Approvals if required
  7. Open Bank Accounts and Apply for PAN/GST
  8. Set Up Governance Mechanisms and Operational Controls

Documents Required to Register a Joint Venture Agreement

For U.S. businesses registering a JV in India, the following documents are typically required:

  • Joint Venture Agreement
  • Charter Documents (MoA and AoA or LLP Agreement)
  • ID and Address Proofs of foreign directors/partners
  • Board Resolutions from each party approving the JV
  • FDI Approval Letters (if under approval route)
  • Digital Signature Certificates (DSC) for filings
  • Director Identification Numbers (DIN) for Indian company directors
  • No Objection Certificates (NOCs) from existing stakeholders, if applicable
  • Registered Office Proof and rental/lease agreements in India

Challenges in Setting Up a Joint Venture in India

While JVs offer immense opportunities, foreign companies may face the following challenges:

  • Regulatory Complexity
  • Cultural Differences
  • Misaligned Goals
  • IP Protection Issues.
  • Exit Complications 

Frequently Asked Questions (FAQs)

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Frequently Asked Questions

How to Start a Joint Venture in India?

Starting a joint venture (JV) in India involves partnering with one or more entities, local or foreign, to pursue a common business goal while sharing resources, risks, and profits. 

  • Identify the Right Partner
  • Define the JV Structure
  • Draft a Joint Venture Agreement
  • Complete Legal and Regulatory Filings

What Is the Law for Joint Ventures in India?

India does not have a standalone law dedicated exclusively to joint ventures. Instead, JVs are governed by a combination of:

  • Indian Contract Act, 1872 
  • Companies Act, 2013 
  • Limited Liability Partnership Act, 2008 
  • Foreign Exchange Management Act (FEMA), 1999 
  • Sector-Specific Regulations

Does a Joint Venture Have to Be 50/50?

No, a joint venture does not have to be a 50/50 partnership. The ownership split in a JV is entirely flexible and should be based on capital contribution, risk-sharing agreement, interest and control.

JV equity can be structured in any proportion such as 60/40, 70/30, or even 90/10, depending on what both parties agree upon.

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