Home bakeries are one of the most successful business ventures that begin in the kitchen and have the ability to span borders. With numerous honours, incentives, and recognition, home bakers are emerging as the most promising entrepreneurs in the twenty-first century, making this a much-hyped career. It involves extremely minimal expenditure and labour in comparison to the potential of this industry domain. Anyone from many walks of life, from homemakers and students to retired senior individuals, can start a bakery business from home.
So many people have established successful home-based baking businesses in Kolkata. But why shy away from registering the establishment?
At MPVD & Associates CA Firm in Kolkata, we have helped several homemakers set up established businesses and grow as successful startups. Many homemakers are not aware of the fact that they need to register their business, even if their annual turnover does not cross the minimum tax slab, even if they sell just one cake a month. Registering the business doesn’t mean you have to start paying taxes, but it does mean that your bakery can operate as a legal entity, get tax benefits, and gain more credibility in the market. Read this article to learn about all the compliances you need for your home bakery business.
What Is A Home Bakery?
Home Bakery is an eclectic domain with a wide range of unique goods and services. It is essential to define your business to get the right company formation title:
The emphasis is on the production of baked foods such as cakes, pastries, cookies, bread, and savoury items.
Several bakeries also provide pizza and other culinary products in a restaurant or takeout-style environment.
Some bakeries provide packaged delicacies such as wafers, biscuits, chocolate, and even gifts.
Some bakeries also provide services such as birthday surprises, custom party treats, and so on.
When it comes to taxes and company law, bakeries do belong within the GST umbrella; nevertheless, there are several grey areas and quirks that have led to classification conflicts among these enterprises. This is why it is very important for home bakers to define their industry and business plan in a clear and compliant manner.
Company Registration or GST Registration for Home Bakery Businesses?
Home bakeries are frequently run by a single baker, family members, or a group of friends who act as vendors who supply customers’ orders. Therefore, when it comes to company incorporation, the business can start with just a GST registration, and it is not mandatory to register the company.
But when the business is growing, perhaps by having production networks in different cities or looking to sell franchises, it is time to incorporate the business. You can turn to us for expert guidance as a trusted GST consultant in Kolkata.
For home bakers, we propose registering the company as a sole proprietorship or a one-person business (OPC) at the starting point. Yet, incorporating it as a limited liability company can reserve most rights and incentives for running and scaling your food business.
FSSAI Registration for a Safe Food Business
Each person or company involved in food manufacture, processing, packaging, or distribution in India must get an FSSAI Food Business licence. Obtaining an FSSAI food business licence would also help the bakery sell baked goods to retail chains that require FSSAI licences from their vendors.
The FSSAI offers two options: licencing and registration. The licence is awarded at the central and state levels, with the former granting it to medium to large businesses and the latter to medium businesses. Registration is only done at the state level and is mostly for minor food enterprises. The key distinction is in the organization’s income and the size of its activities.
Start Your Home Bakery Business Today, Consult with MPVD & Associates for GST, Company Formation, and All Other Concerns.
If you are ready to start your home bakery business, we are ready for you! Talk to us at MPVD & Associates about a wide range of concerns, such as GST or company law matters. We are one of the most reputed GST consultants in Kolkata, where we can help you file for the tax and obtain all compliances in a hassle-free manner. So let’s get to it and make the most of your wholesome baked products.