Company Registration for a Restaurant or Food Business in India
Pick your business structure based on scale — Private Limited or LLP if you're building a chain or planning to franchise, OPC or Sole Proprietorship if you're running one outlet or a solo cloud kitchen. Whichever you choose, company registration is only part of the picture: FSSAI registration or licensing is mandatory for every food business in India, with no exemption for size, and the turnover tiers changed as of 1 April 2026.
Which structure fits a restaurant or food business
There is no single "right" structure for a food business — it depends on how you plan to grow.
If you're opening a restaurant chain, a multi-outlet operation, or you want the option to franchise later, a Private Limited Company or an LLP is the better fit. Both give you a formal legal structure that makes it easier to bring in co-founders or investors, sign outlet leases and vendor contracts in the company's name, and add outlets under one legal entity as you scale.
If you're running a single small outlet or a solo cloud kitchen and want to start with minimal paperwork, an OPC or a Sole Proprietorship is usually enough to begin with. You can always convert to a Private Limited Company or LLP later once the business grows.
FSSAI licensing — mandatory for every food business
This is the part of registering a food business that catches most first-time founders off guard: company registration and FSSAI registration are two entirely separate processes, and you need both. The Food Safety and Standards Authority of India (FSSAI) requires every business that manufactures, processes, packages, stores, distributes, or sells food — including a single-person cloud kitchen — to hold either an FSSAI registration or an FSSAI license. There is no turnover or size below which a food business is exempt.
The tiers are based on your annual turnover, and it's important to note that these figures were recently revised. As of a Ministry of Health and Family Welfare order effective 1 April 2026, the three tiers are:
- Basic Registration — for annual turnover up to ₹1.5 crore. This covers most petty food manufacturers, small retailers, local vendors, and single-outlet cloud kitchens.
- State License — for annual turnover above ₹1.5 crore up to ₹50 crore. Most independent restaurants and mid-size chains fall into this tier.
- Central License — for annual turnover above ₹50 crore. This upper threshold was raised from the earlier ₹20 crore limit under the same 2026 revision.
These ₹1.5 crore and ₹50 crore figures apply from 1 April 2026 and replace the older thresholds — see our full breakdown of the 2026 turnover reform if you want the details. If you've seen older guides quoting a ₹12 lakh registration cutoff or a ₹20 crore Central License threshold, those are the pre-2026 figures and no longer current. A few specific categories of food business are also required to hold at least a State or Central license regardless of their turnover, so don't assume your tier purely from revenue — confirm the exact requirement for your specific business before you apply.
Shunya now handles FSSAI registration directly — share your turnover and business type and we'll confirm your category.
Check my FSSAI category →GST and other local registrations
GST registration follows the same standard thresholds that apply to any business: mandatory once your turnover crosses ₹20 lakh for services, ₹40 lakh for goods, or ₹10 lakh in special category states. Whether your specific food business is treated as a service or a goods supply for this threshold, and what GST rate applies to what you sell, are tax questions best confirmed with your CA — this page is about registration, not tax rates.
Beyond FSSAI and GST, a food business will typically also need a Shop & Establishment registration or a municipal trade license from your local municipal corporation before you can legally operate your outlet or kitchen. These requirements and their fees vary by city and state, so treat any specific fee figure you see online as indicative rather than final, and confirm the exact requirement with your local municipal office.
How Shunya prices this
Shunya's flat professional fee of ₹1,999 covers your company registration — Private Limited, LLP, OPC, or Sole Proprietorship — regardless of which structure you choose. FSSAI registration and your municipal trade license are separate applications, filed with different authorities, and are priced apart from your company registration — FSSAI starts at ₹1,499 for Basic Registration.
Do I need FSSAI registration for a small cloud kitchen?
Yes. FSSAI registration or licensing is mandatory for every food business in India, regardless of size — there is no exemption for small or home-based operations. A single-outlet cloud kitchen with annual turnover up to ₹1.5 crore falls under Basic Registration, the lightest of the three FSSAI tiers.
What are the FSSAI license tiers?
As of a Ministry of Health and Family Welfare order effective 1 April 2026, there are three tiers based on annual turnover: Basic Registration for turnover up to ₹1.5 crore, State License for turnover above ₹1.5 crore up to ₹50 crore, and Central License for turnover above ₹50 crore (this upper threshold was raised from the earlier ₹20 crore limit). A few specific categories of food business must hold at least a State or Central license regardless of turnover, so the exact tier should be confirmed for your specific business.
What's the best structure for a restaurant business?
It depends on your scale and ambition. If you are planning a restaurant chain, multi-outlet operation, or eventual franchise, a Private Limited Company or LLP gives you the legal structure to raise funds, bring in partners, and scale cleanly. If you are running a single outlet or a solo cloud kitchen, an OPC or Sole Proprietorship keeps things simple and low-cost to start.
Do I need GST registration for my restaurant?
GST registration becomes mandatory once your turnover crosses ₹20 lakh for services, ₹40 lakh for goods, or ₹10 lakh in special category states, following the standard thresholds that apply across business types. Which threshold and which GST rate applies to your specific food business is a tax question your CA should confirm separately — this page covers registration structure, not tax rates.
Does Shunya help with FSSAI registration too?
Yes. Shunya's core service is company registration — Private Limited, LLP, OPC, and Sole Proprietorship — for a flat ₹1,999 professional fee, and we separately handle FSSAI registration and licensing (Basic, State, or Central) starting at ₹1,499. Your municipal trade license is a separate application filed with your local authority, which our team can guide you on but doesn't file directly.
This article is for general information only. For your specific situation, consult a practicing CA.
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