How to start a Trading Business for Food Items?

A complete process on how to Set-Up a Food Trading Business in India

Any food business must bear the obligation of supplying safe food and implementing hygienic preparation practices. The Food Safety and Standards Authority of India (FSSAI) has established standards and compliances for safe practices in order to achieve this. There are also taxation and safety-related licenses to consider. Before engaging with the requirements to start a Trading Business for Food, let us have a quick look at what is a Trading Business.


What is a Trading Business?

In simple terms, trading refers to any activity involving the purchase and sale of goods and services. A Trading Business is one that is run with the objective of profiting from an activity.


Trading companies do not actively make things; instead, they purchase ready-made commodities from various manufacturers or wholesalers and resell them to end-users or retailers. These trading organizations can stock items in a store or warehouse, or they can order goods or items based on customer demands.

Business Structure that can be registered as a Trading business for Food Items

If a foreign company wants to set up their business in India then they need to establish their business as an Indian Subsidiary. However, the answer on How to start a business in India? will remain the same.

Process of starting food Trading Business in India



Apart from that, an FSSAI license is required for launching a food business; without it, one cannot engage in food trading, manufacturing, or selling activity. The Food Safety and Standards Authority of India (FSSAI) is an institution that monitors the quality of food goods sold by traders.

Documents Required to start a  food trading Business in India


Start-Up India Registration

Now if you are a Start-Up, then you might require some more registrations and licenses, what are they? Let us have a look at the whole list of Registrations and Licenses required for registering a business as a startup in India.




The Government of India’s Make in India program, Policies of Ease of Doing Business, Large labor pool have certainly opened up the country’s long stagnating domestic manufacturing sector not only to the local investors but for the investors around the globe. India can successfully conduct a wide range of business activities. There has recently been a tendency for businesses that can be successfully run via unlimited digital and online channels, and the government has backed this movement by digitizing the ways of registering a business in India. Any entity that wants to start a business must apply for the FSSAI license.


Related Read: How to start a Trading Company for Retailer?

Zarana Mehta: Zarana Mehta is an MBA in Finance from Gujarat Technology University. Though having a masters degree in Business Administration, her upbeat and optimistic approach for changes led her to pursue her passion i.e. Creative writing. She is currently working as Content Writer at Ebizfiling.
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