Production of supplements that boost energy levels or help fulfill nutritional deficit in the body is a big business these days. All thanks to chiseled bodies and ripped muscles craze, that nutraceutical market has seen unprecedented growth in the last few years. In addition the growing income and access to health promoting avenues like gyms have also added to the growing demand of health or nutrition supplements. Recent studies show that the neutraceutical business is going to touch 2bn Euro worth of sales and revenue figures in coming decade.
Thus, looking at the large number of users depending on nutrition supplements, it is essential that the makers follow the highest standards of quality, reliability, compliance and ethics and do not indulge into any activity that proves harmful to the health of the end users. This is why, neutraceutical businesses are covered under FSSAI regulations.
Section 22 of the FSS Act outlines the need for completing license and other formalities by stating that, “no person or company shall produce, distribute, market, sell or import any of the food, which are genetically modified versions of food of various kinds such as organic, irradiated, special dietary supplement, etc which the Central Government may object to unless it follows the FSS Act or its related rules.” Thus, to ensure compliance and to regulate the business of such humongous volume, some formalities have been put in place by the regulatory authorities. Here is a quick overview of all these regulations one need to abide by.
- ProperFSSAI License for Nutraceutical: Health and nutrition department of India requires the neutraceuticals producers to procure this license without fail. FSSAI regulates the production and marketing of food products across India and, therefore, their license and approval is the first thing that businesses need to acquire for starting the business.
- Business related formalities: Apart from Nutrition Supplement License, the business owner has to do some paperwork to establish himself as a reliable entity worth dealing with. Thus, the business owner, if running a full-fledged company, has to have:
- Registration of the Company with ROC
- PAN card in the name of the company
- Form B duly applied
- TDS and professional tax for owner, partner as well as employees
- Service Tax and VAT registration or either of the two depending upon the scope of products and services offered. If you hold stock or provide only the listing service, but do not manufacture the product as such, then both Service Tax and Vat would be applicable.
- Trademark for the brand name in case of selling the product on online and offline platforms.
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