Through this blog, you will get to know about the licenses required to start a flour manufacturing company.
Flour is the staple ingredient for most of the north Indian dishes. It is also an integral part of most Indian dishes. Thus, making it an ingredient bought by most of the homes. This makes flour manufacturing an excellent business in India. These companies emerging across the country because of the wide business opportunity they provide to the urban and rural areas.
Why should you start a flour manufacturing company in India?
- Why should you start a flour manufacturing company in India?
- What all licenses are required to start a flour manufacturing company in India?
- Things to consider before starting a flour manufacturing company in India
- What are the steps should you follow in order to start a flour mill company in India?
- How can “LegalRaasta” help you to start your flour manufacturing company in India?
- Basic mill set up cost
- Flour mill set up cost
We Indians have a daily consumption of flour as all our staple dishes require it in some or other way. Moreover, retail stores, homes, and restaurants require a constant supply of flour. Hence, making a flour Mill Company is a great business to start in India. In case, you are thinking to start a small-scale food business in India, starting a flour manufacturing company will be a great start. Additionally, starting a flour mill company requires low investments. But, the business provides good returns due to the high demand for the product. Depending on the scale of operations, the two types of companies are:
Small scale – they make profits by milling grains for people for their personal use. Although, the profit margins in small scale flour Mill Company are not high, the capital to start it is very low.
Large scale – they process flour by using raw materials and sell the finished product to retailers and other customers, who further sell them to final customers.
What all licenses are required to start a flour manufacturing company in India?
A specific license is required to start a food production business in India. Since a flour mill company comes under the category of food production business, it too requires some specific license. The following points show various permits and registration needed to start a flour manufacturing company in India:
- Firm/Company Registration of Firm
- Trade License from the local authorities
- GST registration for tax purposes
- Trade Mark Registration
- Food Safety and Standard Authority of India License
- MSME or SSI Registration with the Udyog Aadhaar Registration
- State Pollution Control Board Certificate (if required)
- IEC code if you wish to export your product
- AGMARK (if required)
- BIS certification
Things to consider before starting a flour manufacturing company in India
- There are many types of flour. These types depend on the raw material which is used to make them. The first step is to decide the kind of flour you are planning to manufacture. There are many kinds of the flour manufactured in India. Example of a few of those are given below:
- Sooji Flour
- Wheat Flour
- Maida Flour
- Corn Flour
- Gram Flour
- Atta Flour
- You need to start by finding a suitable place for starting your flour mill manufacturing company. The next task is to initiate the documentation required. In order to start your flour manufacturing company, you are required to have an area of around 2000 sq. ft.
- The next step is to talk with experts who have a wide knowledge of the industry, and know from them which type of equipment should you get. Entrepreneurs are also required to find a store for their raw material. And after that, do the final packaging for the product.
- Following are the equipment you will need to start a flour manufacturing company:
- Atomizing Dampener
- Centrifugal Fan
- High-Frequency Cleaning Sieve
- Flour Cleaning Machine
- Dust Collector
- Intensive Dampener
- Pneumatic Flour Mill Machine
- There are a few more essentials needed to start a flour manufacturing company. The list of these essentials are given below:
- Transportation facility
- Semi-skilled human resource or labor
- Drainage facility
- Storage and Packaging facility
- Always make sure that your location is easily accessible and near your storehouse where you have stored your raw material and market.
- Always try to get the raw materials directly from farmers without involving any intermediaries. This will ensure better prices not only for you but for farmers also.
- Make the decision beforehand, whether you want to get the raw material from other sources or grow it on your own. In case you decide to grow yourself, you should have arable land for it.
- In case you have a shortage of funds, the government offers loans and financial schemes to these entrepreneurs to start their flour manufacturing company.
What are the steps should you follow in order to start a flour mill company in India?
- The first step to follow is that you have to register your flour manufacturing company as a legal business entity. Most of the small scale and medium scale companies incorporate themselves as proprietorship or partnership firm.
- After you have made the decision of what business entity do you want to register, you must collect the required documents.
- After the above two steps, entrepreneurs are required to find a suitable place and get the required equipments to start their business.
- Entrepreneurs are then advised to consult a lawyer and draft a memorandum of association along with articles of association for their flour manufacturing company.
- After that, entrepreneurs must file for incorporation with the registrar of companies or registrar of firms.
- After receiving the certificate of incorporation, entrepreneurs will have to set up a bank account for their lour manufacturing company.
- The next step includes registration under the GST and getting the PAN and TAN for their flour manufacturing company.
- After the GST registration, entrepreneurs have to get the required trade licenses and food business licenses from the FSSAI.
- In case an entrepreneur wants to export their manufactured flour, they shall register with the DGFT and apply for an IEC code.
How can “LegalRaasta” help you to start your flour manufacturing company in India?
- After you contact us, our legal experts will advise you on what type of business registration you should pursue.
- Our experts will take care of all the documentation work required to incorporate your flour manufacturing business.
- Our experts will also handle the drafting of the required documents.
- Furthermore, our experts will help you in obtaining all the required FSSAI and DGFT registrations as per your company requirement. they will also clear your doubts on why to obtain FSSAI license in india.
- For filing your returns, you can get GST registration help from LegalRaasta experts.
Basic mill set up cost
- Cost of land – Rs.2 Lakhs to Rs.3 Lakhs (This money will be saved if the land is own by the entrepreneur)
- Cost of required machinery – Rs. 30,000 To Rs. 50,000 (It’s price varies according to the manual machine, Semi-Automatic and, Fully Automatic)
- Other costs to be included – Rs. 30,000 to Rs. 40,000
- Total investments to be made – Around Rs. 50,000 To 1 Lakh (If the land is owned by the entrepreneur)
Flour mill set up cost
- Cost of land – Rs.10 Lakhs to 15 Lakhs (if the land is owned by the entrepreneur then this money will not be used).
- Cost of required machinery – Rs.5 Lakhs to 10 Lakhs (It has different price according to the manual machine, Semi-Automatic and, Fully Automatic)
- Cost of registration and licensing – Rs.10,000 to Rs.30,000
- Cost of staff – Rs.30,000 to Rs.60,000
- Other costs to be included – Rs.50,000 to Rs.1 Lakh
We provide all kinds of legal services like “International Trademark Registration, Trademark Opposition, Trademark Renewal” and many more. So, contact the expert team of “LegalRaasta”, for a completely smooth and hassle free process.