Which License is Required for Ghee Export from India?

India is the largest consumer of ghee in the world and also the world’s largest ghee producer. Ghee is becoming increasingly common in many countries, especially where the Indian population is significant, caused by growing awareness of its health benefits and its widespread use in traditional cuisines. 

A while ago, ghee even went viral globally with the rise of ghee coffee (often compared to bulletproof coffee). It further boosted its popularity among health and wellness enthusiasts across the world. If you want to learn which licenses are required for ghee export from India, check out this blog post.

Why Start a Ghee Export Business?

Ghee a.k.a clarified butter is believed to have originated in ancient India. It has been used for centuries in Indian cooking and ayurvedic medicines. It offers rich taste, aroma, long shelf life and a number of health benefits to those who consume it. Starting a ghee export business can be a good opportunity as the demand for natural and traditional food products is increasing across the world day by day.

Exporting ghee can be profitable especially in countries where people value high quality dairy products. If you manufacture A2 grade ghee , which is considered premium quality ghee, you can earn higher profits. To succeed in this business, it is important to focus on good taste, high quality and purity. And of course, you must also obtain the necessary licenses and registrations for ghee export business.

Licenses & Registrations Required for Ghee Export from India

The following licenses and registrations are required for exporting ghee from India to other countries:

Company Registration

To start a ghee export business, one of the primary requirements is choosing the business model. You can choose sole proprietorship or partnership firm if you wish to operate an unregistered business. However, both these models lack limited liability protection and in case of business debt or losses, the owner’s personal assets can be at risk. This is why a registered business is often seen as more superior. 

Private limited company, public limited company and one person company, under the Companies Act, 2013, are registered business models that offer limited liability protection to the company owners. Limited liability partnership, registered under LLP Act 2008, also offers this and is seen as a better option than a partnership firm by many entrepreneurs. 

To register a pvt ltd co, public ltd company, one person company or a limited liability partnership, you need to file an application online via the official MCA portal. After successful registration, the Registrar of Companies (ROC), an office under MCA, issues the certificate of incorporation in the name of a business entity.

FSSAI License

An FSSAI license is mandatory for businesses that deal with the manufacturing, processing, storage, distribution and sale of food products. If you want to export ghee from India, having an FSSAI license is a basic legal requirement. The license must be applied for online via FoSCoS portal. 

There are different types of FSSAI licenses and for exporting ghee, you usually need a Central FSSAI License. The validity of the FSSAI license can range from 1 to 5 years depending on your choice during the FSSAI registration process.

APEDA Registration

Another requirement for ghee export business in India is APEDA registration, also known as APEDA RCMC. Ghee is a dairy product and is listed under the scheduled products of Agricultural and Processed Food Products Export Development Authority (APEDA). Therefore, obtaining APEDA registration is mandatory for exporting ghee from India.

Import Export License

Import Export Code, also known as import export license, is a 10 digit alphanumeric code. The Directorate General of Foreign Trade issues it. Every business that is engaged in import/export activities must have an active IEC unless it is specifically exempted from this requirement.

The process to obtain an IEC is online. For this, you must visit the official DGFT portal. After you finally secure an IEC license, you do not need to renew it ever as it remains valid for lifetime. However, you do need to update core business details annually to maintain active status of the IEC. If you want help in the IEC registration process, you can connect with our consultants at Registrationwala.

Halal Certificate

A Halal certificate is often required when exporting ghee to countries having a significant Muslim population. It certifies that the product complies with Islamic dietary laws and is fit for consumption by Muslims.

For exporting ghee to Middle Eastern countries such as the UAE, Saudi Arabia, Qatar, Kuwait and Oman, a valid Halal certification is usually a must. It may also be required in countries like Malaysia, Indonesia and certain nations situated in the African continent.

GST Registration

For businesses in India, GST registration is mandatory if their annual business turnover exceeds threshold limits, i.e., Rs. 40 lakhs for goods or Rs. 20 lakhs for services. However, when it comes to export business, this registration is mandatory regardless of the annual turnover of business. As a result, each and every business involved in export business activities must obtain a GST registration unless it has been exempted specifically. 

To obtain the GST registration, you need to visit the official GST portal and fulfill the necessary steps. After successful registration, you will receive a GST registration certificate containing a GST identification number. GST registration comes with lifetime validity, unless cancelled or surrendered. So, renewal is not required.

Conclusion

To export ghee from India, you require many licenses and registrations like company registration, IEC license, FSSAI license, APEDA registration, halal certificate and GST registration among others. If you need assistance in starting a ghee export business, you can connect with our consultants at Registrationkraft. We will help you in fulfilling the major legal and regulatory requirements so you can start/operate your business smoothly.