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How to Start a Bakery in India?

  • March 03, 2025
  • Update date: April 04, 2025
  • Dushyant Sharma

A bakery is a place that bakes and sells food items such as cakes, pastries, tartlets, cookies, bread, muffins and croissants. Many individuals often visit bakeries because they’re drawn by the sweet, enticing aroma and the desire to satisfy their cravings for quality baked items.

Opening a bakery can be a great decision. It allows you to be creative with baking, meets the constant demand for fresh baked items and has the room to grow and offer new products. A bakery business can be fun and rewarding since most people love tasty treats.

If you want to learn how to start a bakery in India, check out this blog post.

Why Start a Bakery in 2025?

The bakery business is one of the most popular food businesses of all time. Many people with a sweet tooth regularly visit bakeries. You can start a bakery business at home if your budget is small, or you can rent or purchase a small space to run a bakery. 

Compared to many other business ideas, the bakery business is cheaper but can still be very profitable. Unlike a restaurant, you do not have the pressure to prepare food for clients immediately. You can sell bakery items that remain fresh for a week or so.

List of Bakery Items

Here is a list of bakery items you can sell when you finally open a bakery shop:

  • Cheesecakes: Blueberry Cheesecake, Lemon Cheesecake, Matcha Cheesecake and Strawberry Cheesecake.

  • Pastries: Vanilla Pastry, Pineapple Pastry, Black Forest Pastry, Chocolate Pastry, etc.

  • Bread: Oat Bread, Multigrain Bread, Focaccia, Baguette, Gluten Free Bread, Wholewheat Bread, Garlic Bread, Sourdough Bread and Brioche.

  • Buns: Wholewheat buns, Garlic buns and Gluten Free Buns

  • Pies: Apple Pie, Chicken Pie, Lemon Pie, Raspberry Pie and Blueberry Pie.

  • Cookies: Butter Cookies, Oat Cookies, Jeera Cookies, Chocolate Cookies, Pistachio Cookies and Almond Cookies.

  • Biscuits: Coconut biscuits, Digestive Biscuits, Oat Biscuits, Chocolate Biscuits and Ginger Biscuits.

  • Croissants: Croissant Ordinaire, Pain Au Chocolat, Croissant aux Amandes and Croissant au Beurre.

  • Puffs: Paneer Puff, Egg Puff, Pizza Puff and Chicken Puff

  • Brownies: Oreo Brownie, Red Velvet Brownie, Walnut Brownie, Eggless Brownie, etc

  • Cupcakes: Blueberry Cupcake, Strawberry Cupcake, Chocolate Cupcake, Hazelnut Cupcake, Lemon Cupcake and Vanilla Cupcake.

  • Quiches: Spinach Quiche, Chicken Quiche, Mushroom Asparagus Quiche and Zucchini Quiche.

  • Sandwich: Grilled Cheese Sandwich, Cucumber Sandwich, Ham Sandwich, and Hotdog.

  • Samosas: Aloo Samosa, Chowmein Samosa, Mix Veg Samosa, etc.

Requirements for Opening a Bakery in India

Here are some legal requirements you need to fulfill before you can start a bakery in India:

Company Registration

For starting a bakery shop, the first and foremost requirement is registering our business. You can start your bakery shop as a Limited Liability Partnership under the LLP Act 2008 or as a company under the Companies Act 2013. 

To register your business, you must file an application with the Registrar of Companies (ROC) along with a draft of company registration documents, such as Memorandum of Association and Articles of Association. The exact application form depends on the company model you choose. 

Once your business gets registered with ROC, you will be issued a Certificate of Incorporation for your bakery business. You will also need to secure a Certificate of Business Commencement from ROC so you can begin your business operations legally. 

Each business structure has its own pros and cons. If you do not know which business structure would be suitable for your bakery business, we recommend you to speak with a company registration consultant for guidance.

Trademark Registration

Trademark registration is a legal process through which a business can protect its brand name, logo, symbol or design. It prevents other companies from using a similar mark that could confuse or mislead customers. It is important for a bakery to register its brand to prevent competitors from using a similar name or image to sell their bakery products. 

Trademarks are registered in India with the Trade Marks Registry (TMR). So, to secure trademark registration, you must file an application with TMR. By securing a trademark for your bakery shop, you can protect your brand identity and prevent potential legal disputes or infringement battles.

FSSAI License

All the food businesses engaged in manufacturing, storing, distributing and transporting food and food products must secure the FSSAI license. FSSAI is a type of food license issued by the Food Safety and Standards Authority of India (FSSAI), an independent organization that establishes standards for food safety and quality in India. 

The FSSAI authority issues three different food licenses based on the business turnover and scale of operation. If your business bakery is a small-scale business and has an annual turnover of less than Rs. 12 lakhs, you must apply for FSSAI Basic License. 

If your business is a mid-sized scale business and has an annual turnover between Rs. 12 lakhs and Rs. 20 crores, you must file an application for FSSAI State License. FSSAI Central License must be obtained by you if your bakery business is a large-scale business and its annual turnover crosses Rs. 20 crores. 

By securing FSSAI license, you will comply with the license requirements mandated by the Government of India. You will ensure that the food you produce in your bakery is safe for consumption, hygienic, and meets the quality standards of the Food Safety and Standards Authority and Food Safety and Standards Act 2006. 

Current Bank Account

You must open a current bank account for your bakery. By doing so, you can conduct business transactions, track your finances, manage cash flows and make payments without any hassle. 

Opening a current account will help you to separate your personal and business finances and ensure the record-keeping process is clear and the tax filing is easier. In addition to this, having a dedicated business account will enhance the credibility of your bakery and make it easier for you to access loans and attract potential investors.

GST Registration

GST Registration isn’t just a legal requirement for a bakery business. It is a step towards ensuring greater transparency in the tax regime. If a bakery business’ annual turnover exceeds a certain turnover, it must register for GST. For goods, this limit is Rs. 40 lakhs. For services, the limit is Rs. 20 lakhs.

Bakery goods include food items like cakes, bread, pastries, cookies, and packaged snacks that are sold to customers. If the revenue from selling these goods crosses Rs. 40 lakhs in a year, GST registration is mandatory. 

Bakery services include catering services, customized cake-making services, cafe services or baking workshops. If the revenue from such bakery services crosses Rs. 20 lakhs in a year, then GST registration becomes a mandatory legal requirement for a bakery business. 

GST registration ensures a bakery is integrated into the formal economy. It makes the bakery eligible for input tax credits which can help to reduce costs.

MCD Health Trade License

The Health Trade License is a legal permit granted by the state’s Municipal Corporation to a business engaged in the sales of food items. Therefore, this license must be acquired by a bakery. In Delhi, the Health Trade License is issued by the Municipal Corporation of Delhi (MCD). 

By obtaining this license, you can operate your business legally in Delhi. It serves as proof that you’ve received official permission from the city to sell bakery products. MCD Health Trade Registration ensures your bakery meets the required hygiene standards and complies with the food safety regulations to protect the health of consumers.

Conclusion

Starting a bakery in India can be a fun yet lucrative business. People love fresh muffins, cakes, cookies and pastries. Imagine baking all these delicious things with love all year round. If your budget is small, you can start a bakery at home. If you want to own a bigger business, you can rent a shop where you can run your bakery. Before opening your bakery, make sure you fulfill all the legal requirements, such as registering your business with the Registrar of Companies (ROC), securing FSSAI license, registering for GST, etc. 

Our consultants at Registrationwala would be glad to help you with all the steps required to register your bakery business in India. We’ll assist you in registering your business with the Registrar of Companies (ROC), the Food Safety and Standards Authority of India (FSSAI), and guide you through the entire GST registration process.

Frequently Asked Questions (FAQs)

Q1. Is FSSAI License mandatory to run a bakery in India?

A. Yes, since a bakery manufactures and sells food products, it is mandatory for it to secure FSSAI license.

Q2. Who issues the Health Trade License in India?

A. The Municipal Corporation of Delhi issues the Health Trade License in India.

Q3. When must a bakery business mandatorily register for GST?

A. A bakery business must mandatorily register for GST if its annual turnover exceeds Rs. 40 lakhs for bakery goods or Rs. 20 lakhs for bakery services.

 


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Author: Dushyant Sharma
Hey there, I'm Dushyant Sharma. With the extensive knowledge I've gained in past 8 years, I have been creating content on various subjects such as banking, insurance, telecom, and all the important registration and licensing processes for various companies. I'm here to help everyone with my expertise in these areas through my articles.

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