Starting a flour mill business in India is a smart move. Demand for flour never drops. Every home, restaurant, and food outlet needs it. But before jumping in, you need the right guidance.

I’m Deeksha Khurana, a tax consultant with Taxlegit. I help entrepreneurs like you with legal registrations and tax matters. Let me walk you through how to start your flour mill business in India.

Understand the Flour Mill Business

Start with knowing your market. Are you targeting households, local shops, or big food chains? Decide on the scale of your operations. You can begin with a small setup and grow over time.

Choose the Right Business Structure

Before anything,how to start flour mill business in India. This is important. You can go for:

• Sole Proprietorship

• Private Limited Company

Let me explain the difference.

Sole Proprietorship is simple to start. It’s best for small businesses with low risk. But, you and your business are the same legally. That means you bear all liabilities.

Private Limited Company, on the other hand, is ideal for medium or large-scale setups. It offers better credibility. It also protects your personal assets. Banks and investors trust private limited companies more.

Register Under Udyam

Registering under Udyam (MSME) gives you benefits. You get easier access to loans and subsidies. You also enjoy tax rebates. At Taxlegit, I help clients register quickly and smoothly.

Apply for FSSAI License

Since flour is a food product, you need an FSSAI license. It shows that your product is safe. It also builds trust with your customers.

Understand GST on Flour and Food

Let’s talk tax. Most food products, including flour, are taxed under GST. The GST on food and restaurants in India varies between 5% to 18%.

Basic wheat flour for household use is taxed at 5%. But if you supply to restaurants, the GST may differ. Make sure to register for GST if your turnover exceeds the limit.

Get Other Licenses

You also need the following:

• Trade license from your municipality

• Factory license if your setup is large

• Pollution control clearance if needed

I help you get all these through Taxlegit.

Location and Machinery

Choose a location close to your raw material sources. This will save costs. Also, make sure the area has good road access.

Buy efficient and durable machinery. Some must-have equipment:

• Wheat cleaner

• Grinding machine

• Packaging unit

Start with a small unit and upgrade later.

Hire Staff

You’ll need a few workers to run machines and manage packaging. Train them well. Good staff reduces wastage and improves quality.

Packaging and Branding

Your packaging matters. Use clean, sealed, and eco-friendly packaging. Label your bags with weight, brand name, and FSSAI number.

Good branding helps you stand out. People remember a name they trust.

Open a Bank Account

Open a current account in your business name. This makes it easy to track income and expenses. Also, it helps in tax filing.

Keep Your Books Clear

Maintain clean accounts. File GST returns on time. Record all income and purchases.

I help businesses with regular tax filing, GST registration, and financial planning.

Final Words

Starting a flour mill needs planning. But with proper guidance, it’s achievable. I’ve helped many clients kickstart and grow their businesses.

From choosing between Sole Proprietorship vs Private Limited Company, to handling GST on food and restaurants in India, I’m here to guide you.

Connect with Taxlegit to start your journey. Let’s build your flour mill business together — the right way.