How To Start Catering Business

Around the world, there is nobody who has ever thought of celebrating his/ her happiness without inviting their known ones. For such arrangements and gatherings, they will surely need a person to handle catering work.

Nowadays people do not have enough time for managing each and every task while they are busy meeting with their guests and colleagues, due to which they fix a deal with Catering workers and order food for their guests.

This is one of the reasons behind the increasing demand for the catering business. In this business, the quality of your team’s service plays a major role. The next important factor is taste of food.

So, In Today’s article, we’ll understand How to Start Catering Business and What Are Important Licenses and Documents Required to run this business.

How To Start Catering Business - Plan, Profit, License, Loan

Table Of Contents

What is Catering

Catering means arranging food. Catering Provides services related to the arrangement of food, drinks etc. at events or places where lots of people gather for celebrating their special days.

Such as: weddings, ceremonies, birthday celebrations, family functions, office functions, the opening of new shops etc.

If you want to start your Catering Business, then you can start it easily without facing much trouble. To start this business you just need to have good connections with lots of different dealers and wholesalers of food, drinks and decoration arrangements.

You should also know the standard of people who will be attending the eve and as per their interest of taste, you have to arrange all the requirements of that party. To run this business, on a professional level you can also hire trained confectioners and chefs for their service to your organized events.

these peoples are highly trained and for making perfect taste with attractive designs on food. They have talent to prepare enough food with least wastage. This will even benefit you in generating more profit for every event you conduct.

Once your own catering business is known to all, people will start consulting you by themselves. they will also advertise your services in their event if it ends very well. In this way, you can start your Catering Business very easily.

Find Location to Start Catering Business

To start a Catering business, you have to decide on a place where crowd is more and people keep coming and going. You can see places like malls, nearby business parks, within the city etc. for this.

People usually come to malls for purchasing jewelry, dresses etc. for these types of functions. If they find your office in malls you can get benefit from it.

You can also decide the place nearby offices, companies etc. where people visit these places a lot. You can open your office for Catering services in any market also, where there are a lot of people coming and going.

The more your office will be noticed, you can earn a lot of profit in this business. You can start your office at any of the above-mentioned places. These places will never disappoint you.

Now moving towards another important aspect to run business this business is its license, registration, and approvals.

Now, we’ll understand which registrations and licenses are important for starting your Catering business.

Registration & License for Catering Selling Business

For starting your Catering business given licenses and registrations are a must. Below given details are required for your Catering business:

Current Account ( For Business Transactions).
Shop License (Gumasta License).
MSME Registration
Udyog Aadhar
FSSAI License
Liquor License

If you want to run your Catering without any police hassle or any legal action, then you need to get a license for this.

How to Open Current Account for Catering Business

To receive payment under your Catering business, you must have a current account under your business name. For getting a current account for your Catering Business you will need a shop license.

For issuing a shop license you will need identity proofs such as (An Aadhaar Card, Voter Id Card, Driving License, Etc.) and PAN Card.

If you have any of these documents available, then you can easily apply for current account in any nearby bank.

These are a few trustworthy global banks for opening current accounts:

SBI Bank
ICICI Bank
HDFC Bank
AXIS BANK
BOI Bank

How to Get an MSME Certificate for Catering Business

To register your Catering business under govt. Policies and their scheme, you have to register your business under MSME facilities.

MSME stands for Micro, Small Medium, and Enterprises. It is a type of enterprise managing government that helps you to get govt. loan schemes and benefits etc.

To get your own MSME certificate for your Catering business you can go to the website and apply for an MSME certificate.

How to Get FSSAI Licence for Catering Business

To start your Catering business you must have FSSAI License. FSSAI License Stands for the Food safety and standards authority of India. This license provides you the consent for the good quality of edible products sold by you.

FSSAI License is not mandated for businesses that have an annual turnover below 12 lakhs or if their production capacity falls below 100 kgs per month. Such businesses only require an FSSAI Registration.

Vending edible goods without this license is a punishable offense. For starting your Catering business, this license is the first document that must be approved.

To get your Catering business FSSAI License you can simply log on to the website and start selling approved good quality food and beverages.

How to Get a Udyog Aadhaar Certificate for Catering Business

To get a loan for your Catering business from govt. You should first, register your business as Udyog Aadhaar Certified. It will help you to apply for govt- loan schemes and get subsidies in the form of bank loans.

To get a udyog aadhaar certificate for your Catering business you log on to the website and apply for the Udyog Aadhaar Certificate.

How to Get a Shop License for Catering Business

To get a shop license for your Catering business you have to first select a location for opening your office. If you’re renting any market place then, you have to get a rent agreement where your Catering name should be mentioned.

Once you get that place, you have to get a banner for your Catering that has your business name and address on it.

A copy of your rental agreement and a photo of your business with the banner is enough for getting a shop license.

To get a Gumasta license, you have to first go to the official website of your state or you can simply visit the nearby office.
After that, you have to register your business there.
After a few days of registering, your Catering Business Gumasta license comes to your house.

After reading this, you can apply to get a shop license for your Catering business. Now, we’ll know How much Investment will be required to start a catering business.

How to Get Liquor License for Catering Business

Liquor is one of the legal and illegal drinks whose consumption acts as good as well as bad for health around the world.

If you also serve such drinks in events arranged by you then require a Liquor License which permits you to serve a limited amount of drink to every guest in the event.

To get your liquor license you can follow the below-given steps:

You must own a permanent Catering hall.
You should have FSSAI and Gumasta Licenses.
You have to inform the nearest ABC(Alchohol and Beverages commission), 3 days prior to the event.
The validity of this license is only valid for up to 1 year.
To get your liquor license click on the button below.

Apply for Liquor Licence

After applying you can get your liquor license for Catering Business easily.

Investment in Catering Business

To start your own Catering Business you don’t need any type of investment amount. This is because, as soon as you take orders from a client they already facilitate you with some advance payment to start the work.

This amount is enough to start this business. After then you can start arranging things for different clients and all the clients pay an advance payment for this work.

To start this business, you must have large utensils and pots for cooking items. At the initial stage, you can rent these utensils from any local sweets, or bakery shop.

Later on, you can buy these of your own. These items will cost you around ₹ 10,000/- to ₹ 15,000/- [$100 – $200].

Along with these items if you also want to start your business with a fixed shop where people can come and finalize, deal for arrangements of their event. For this you have two ways:

Start This business From your Home.
Find a place in the market for rent and start from there.

In this way, you will need approx. ₹ 30,000 /- to ₹ 50,000/- [$300-$600] to start this business from initial stage. Or you can start this business with zero investment.

Loan Against Catering Business

To get a Catering business loan, you can apply in any type of fin serve service or bank. Many countries even accept Gold Loans on behalf of reference.

Before starting your Catering business, you will have to give the necessary information in your loan file, Such as your needs and how much money you require, the time of repayment, etc. Then you have to deposit your file in the department.

As soon as your loan is passed, all the money will be deposited into your bank account.

How to Advertise Catering Business

If you want to advertise your Catering business, you have two ways to do this:

First of all, you have to contact your nearby shopkeepers and tell them that you have started Catering Business nearby.
If they want your services, they can contact you at your number.
You can also show them design catalogs of events conducted by you.
You have to reach all the nearby shopkeepers and contact them.

Once you get in touch with the shopkeepers, they will contact you if they need Catering service.

Apart from this, You can list yourself on a website like Indiamart, Alibaba, eBay, etc. to start your business online.
After that people will come to you by themselves. For your services.

You can also create your business Facebook page for online marketing. Where you can post the best photos of your Catering and put them on your page. You can also market your business on Instagram.

You can get a lot of benefits in marketing from Instagram. Because more than half of the world’s population is using Instagram. For this, you have to first create an Instagram account for your business.

After this, you can market your business by sharing your Catering pictures.

For offline marketing, you can also get some posters and banners related to your business. So that, the people of your local can know that you started the Catering Business.

Profit in Catering Business

The profit in this business is too much. If you arrange an event for Rs. 2 Lakhs [$2,499] then you can easily save Rs. 80,000/- to Rs. 90,000/- [$900 – $1000].

This is because you can reuse these utensils in everyone’s events either periodically or you can buy them of your own but you show that these items don’t belong to you. You have arranged it for rent.

Like this, If you successfully end up with 15 events by the end of month, and if every event costs around Rs. 3 lakhs [$3699]. Then you can easily earn around Rs. 15 lakhs [$18,220] per month.

Hoping, you have completely read the article about How to Start Catering Business.

If you liked the information given by us, do tell us. if you have any queries in your mind, you can freely ask us by commenting below.

How To Start Catering Business – Plan, Profit, License, Loan