How to set up an Edible Oil Processing Unit

To start an edible oil processing unit in India, it is compulsory by law to get the following registrations done before commencing work:

  1. First, you are required to register your business. Depending upon the requirement one can choose a business model like sole proprietorship, LLP or private company.
  2. Next, the promoters/partners need to get the business registered with Goods and Services Tax authority, especially if the annual turnover is more than Rs. 20 lakh or more or cross-states border trade is being carried out by the firm.
  3. Get the Udyog Aadhaar registration done with the Ministry of Micro, Small and Medium scale enterprise to be entitled to enjoy special benefits.
  4. Trade License from the State Health Department as a guarantee that the processing unit is following specified practices pertaining to public health and hygiene.
  5. Environment Clearance certificate from the Ministry of Environment. The concerned officials screen, scope and evaluate the project at the onset to examine its impact on the environment.
  6. A NOC from the Fire Department before at the project stage.
  7. Get the Food License from the FSSAI. For edible oil processing units that process up to 2 million tons per day and have a turnover above Rs. 12 lakh per annum, need to get the get the state license for operations. For units that process more than 2 million tons a day need to get themselves the central license. Both the licenses are valid for the period from one to five years. The blueprint or the layout plan of the processing unit with dimensions mentioned in meters need to be submitted for obtaining either license. Also, a complete list of machines and equipment being used with the horsepower needs to be submitted along with Form-B.

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FSSAI Registration - As per the Food Safety Management System guidelines of FSSAI pertaining to edible oil processing units include:-

  • The establishment needs to be located away from polluting industries.
  • Entry of domesticated animals like dogs, cats, and other pets should not be allowed on the premises
  • In case there are planted areas nearby there should be clear space provided between the unit and the planted area.
  • There should be enough space for materials, personnel, products to move around.
  • There should be clearly demarcated areas for inward and outward vehicle movement.
  • With regards to the water supply to be used for processing the oil, the water and the steam used as product ingredient needs to be potable and the quality of this potable water needs to be as per the standards specified by the Bureau of Indian Standards on drinking water.

All the above registrations and licenses can be applied for online. It includes a great amount of documentation and tedious work as there are categorized steps that need to follow for each. We have years of experience of helping new business entities get their company registrations done. We help companies with GST registrations, the filing of returns, MSME registration, Food License etc.

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