Module 3

MODULE 3
Food and Nutrition Entrepreneurship

Dr. Mian Kamran Sharif
Associate Professor
National Institute of Food Science and Technology
× Business Registration Procedure
Topics to be × Product Labelling and Packaging
covered × Food Business Laws and Regulations
× Role of Punjab Food Authority
5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 2

Business Registration
Procedure
✓ Business registration process is a legal
process of registering a business entity with
government authorities
Introduction ✓ There are four types of businesses

• Sole Proprietorships
• Partnerships
• Limited Liability Partnership (LLP) registered
from SECP
• Limited Company or Limited Liability
Company (Pvt. Ltd. in Pakistan)

✓ Sole proprietorship
• In a sole proprietorship your business and
personal assets and liabilities are not
separated
✓ Partnership
Introduction • This is the business structure for two or
more people that own a business together
• Types ✓ Limited liability partnership (LLP)
• It protects personal assets from the
business’ liabilities
✓ Private limited company
• A Private Limited Company offers limited
liability and legal protection to its
shareholders

Business Registration Process
1 2 3 4 5
Choose Find a Register Register Register

business location your with the with state
structure business SECP and local
name agencies

Business Registration Process in Pakistan
Obtain Reserve Open Apply

Obtain PIN for Reserve the Open a bank Apply for sale tax
company name, register account for tax registration
registration the company registration number (STRN)

✓ Obtain PIN for company registration
• Agency
o Securities and Exchange Commission of Pakistan (SECP)
• Time to complete
Business o Less than one day
Registration ✓ Reserve the name, register company, pay

incorporation fees, obtain a national tax number (NTN)
Process in and register with Excise & Taxation Department of the
District (Professional Tax), the SESSI, EOBI and Labor
Pakistan Department of Karachi on the SECP e-portal
• Agency
o Securities and Exchange Commission of Pakistan (SECP)
o Less than one week

✓ Open a bank account for tax registration
• Agency
o Any bank within Pakistan
Business • Time to complete
o One day
Registration ✓ Apply for Sale Tax Registration Number (STRN) at the
tax facilitator center of the Regional Tax Office (RTO) of
Process in the Federal Board of Revenue (FBR) in Karachi
Pakistan • Agency
o Tax facilitation center of the Regional Tax Office (RTO) of
the Federal Board of Revenue (FBR) in Karachi
o One week

Securities and Exchange commission of
Pakistan (SECP)
✓The SECP is responsible for regulating and

supervising the non-banking finance sector,
capital markets, and corporate sector in Pakistan
Agencies ✓To start the business in Pakistan you need to
register it in SECP
✓SECP registers different types of companies
such as
• Private Limited
• Public Limited
• SMC Private Limited
• Limited Liability Partnership

Agencies
Process of SECP Registration
✓ Decide status of your company
• That either it may be public or private
✓ SECP name search
• Choose the name of the company that will represent
the values you want to promote
✓ Submission of company registration documents
• You must obtain all required identity documents
from yourself and your partner
✓ Company incorporation
• After the submission of documents, the concerned
officer at the CRO will issues the certificate of
incorporation.
• This certificate will mention the name of the
company, date of incorporation, a Unique
Identification Number (UIN) and fees charged

3

Banks
✓Banks provide financial and advisory services to

small and medium business as well as larger
corporation
✓These services are tailored to the specific needs
Agencies of each business
✓These services include
• Deposit accounts and non-interest bearing products
• Real estate loans
• Commercial loans
• Credit card services

Federal Board of Revenue (FBR)
✓FBR is the central agency of the Pakistani

government that is responsible for the
administration of taxation and custom duty in
Agencies Pakistan
✓The main objectives of FBR
• To implement government policies related to
taxation and custom duties
• Collect revenue on behalf of the government and
ensure tax compliance

✓ Before filing the sale tax return,
company need to register itself with
FBR
Sale Tax ✓ The registration with FBR provides
Registration the company STRN (sale tax
registration number) and password
✓ These credential allow access to
eflie portal, the filing sale tax return

It allows the public to
know who is operating a
company
Benefit of It is ensuring that no

one else can operate a
company under the
Legal protection
Business same structure
Registration It is important for

Credibility
Process businesses to register

as it provides
Compliance with
various tax and
legal requirements
Easy measurement
of investment of
every person

Product Labelling and
Packaging
Packaging
✓ Safeguard and hygienic package
✓ Hermetically sealed containers for
liquid items
✓ Packing media (Nitrogen)
✓ Codex Alimentarius standard should
be fulfilled
✓ List of ingredients shall be in
accordance with codex general
standards

Labelling
✓ Any tag, brand, mark or pictorial
presentation on food products
✓ Mostly required for prepared foods
✓ Different kind of labels are used for
different packaging
✓ Provides information regarding dietary
supplements

Mode of ✓ Manufacturer
address
and his/her complete
Labelling of ✓ Specification of net weight of the food
Pre-Packed ✓ Specify batch and lot number

✓ Date marking (manufacturing and expiry)
Food ✓ Nutritional information

Mode of Labelling of Pre-Packed Food
Specific details for milk products Special requirements

✓ Every package containing tea whitener For vitamins and mineral containing food
powder shall contain ✓ Following things are required if amino acid
• Contains added sugar and vitamins are added
• ‫یہ قدرتی دودھ نہیں ہے‬ • Name
✓ In the case of the Infant formula write in • Quantity or the amount
Urdu language • Permitted levels
• .‫ یہ قدرتی دودھ نہیں ہے‬.‫یہ پ یدائش سے چھ ماہ کے بچوں کے ل ئے غذاتی قارموال ہے‬ • Package must bear a claim of enrichment

✓ Serves three main functions
• It’s where you convey important information like the
o Product’s description
Importance of o Ingredients/materials
Product o How to use the product

• Protects the product from damage and keeps it fresh
Packaging • Primary opportunity to set your product apart from

similar items sitting just feet or inches away
✓ Allows to convey brand’s unique value proposition
✓ Emphasize important features

✓ Design with your audience in mind
Packaging • It’s important to know who you’re talking to

• What appeals to your intended audience is
Design Tips the key metric
• Should appeal to the type of consumer
most likely to purchase your product

✓ Keep it consistent
• Choice of color, fonts, and graphics should
dovetail with those used in your logo and other
product marketing
• Establish clear link between the packaging
design elements of both the old and new
products
✓ Use graphics to communicate

• Humans are visual creatures
• Text has become an indispensable way to
convey information
• Rely on visual elements to understand
information
• Lean heavily on simple, high-quality graphics

✓ Keep it clean and streamlined
• Less is more when it comes to package design
• Give potential customers a sensory break
when their eyes land on your product
• Minimalist packaging and label design looks
more sophisticated
✓ Put your pitch front and center

• Straightforward value proposition is required
• Dedicate most valuable real estate to a short
and simple phrase
• Tell consumers what they’ll experience when
they purchase the product

✓ Take it easy on the planet
• Our planet’s landfills and oceans filling up fast
• Environment-friendly label and packaging
options
• Sustainable packaging
✓ Give your packaging a second life

• Sharing ideas with customers for how to reuse
your packaging
• Repurposed packaging will serve as a
reminder of your product long

Tools for Product
Label Designing

G e t S t a r t e d!
Don’t Forget Your

Product Labels

Food Business Laws and
Regulations
✓ There is several laws related to food safety in
Pakistan
✓ All these laws have categories according to the
need
✓ Many laws are enforced for
Introduction • Hygienic production of food products
• Safe transport of the products
• Supply of food products
✓ There are laws from Farm to Fork to ensure the
food safety of the products

✓ There are four attributes which ensures the purity
of the food product
• It bans the production of such food products
which are harmful to human intake e.g.
products that can cause food poisoning
• It forbids the import and export or selling of
hazardous food products
Introduction • Certain hygiene criteria
• It facilitates the laboratory analysis of the food
samples which cohere to set criteria
✓ It is the responsibility of the government to
implement the law
✓ The laws regarding food safety vary from area to
area and the panelist also has different criteria
according to that area

Offences and
Penalties

✓ Selling food against the law
A person who sells any adulterated food or food
which is not in compliance with the provisions of
this Act, shall be liable to:
• Imprisonment may extend to six months, but which
shall not be less than one month
• Fine one million rupees but which shall not be less
than one hundred thousand rupees
✓ Offence by large scale manufacturers

If a food operator manufactures, keeps,
transports, imports or exports adulterated food for
large scale, shall be liable to:
• Imprisonment of five years but which shall not be
less than six month
• Fine of two million rupees but which shall not be
less than five hundred thousand rupees

✓ Substandard or misbranded food
Any person who manufactures for sale, stores,
sells, distributes, imports or exports any food
which is not of standard or misbranded, shall be
liable to:
• Imprisonment of six months but which shall not be
less than one month
• Fine, may extend to one million rupees, but which
shall not be less than one hundred thousand rupees
✓ Failure to comply with the directions

If any person, without reasonable cause, fails to
comply with any order or notice issued by the
Food Authority or a Food Safety Officer, shall be
liable to:
• Imprisonment for a term which may extend to three
months
• Fine which may extend to five hundred thousand
rupees
✓ Unsafe food
A food operator, who manufactures for sale, stores, sells, distributes,
imports or exports any unsafe food, shall be liable:
• Where the unsafe food does not result in injury to any person
o To imprisonment for six months but which shall not be less than one month and
fine which may extend to one million rupees, but which shall not be less than one
hundred thousand rupees
• Where such unsafe food results in injury to any person
o To imprisonment for a term which may extend to three years, but which shall not
be less than three months and fine which may extend to one million rupees, but
which shall not be less than one hundred thousand rupees
• Where such unsafe food results in death of a person
o To imprisonment for a term which may extend to imprisonment for life, but which
shall not be less than ten years and fine which may extend to three million
rupees, but which shall not be less than two million rupees

✓ False labeling
Any person, who prepares, packages, labels any
food which does not comply with the prescribed
standard, shall be liable to:
• Imprisonment for one year but which shall not be
less than six months
• Fine one million rupees but which shall not be less
than five hundred thousand rupees
Any person, who labels any food in a manner
which is false, misleading or deceptive as regards
its character, nature, value, substance, quality,
shall be liable to:
less than six months
• Fine of one million rupees but which shall not be
less than five hundred thousand rupees

✓ Unhygienic or unsanitary conditions
Any person, who manufactures or processes or
keeps any food under unhygienic or unsanitary
conditions, shall be liable to:
• Imprisonment for six months but which shall not be
less than three days
• Fine of one million rupees but which shall not be
less than twenty thousand rupees
✓ False information
If a person makes a misleading statement,
provides false or misleading information shall be
liable to:
• Imprisonment for a term which may extend to six
months
rupees

✓ Any person, who contravenes the provisions
of sub-section shall be liable to:
Warranty • Imprisonment for a term which may extend to
six months
A food operator who is a manufacturer, • Fine which may extend to one million rupees
distributor or dealer of a prescribed food
shall not sell such food to any food
vendor unless a written warranty or other
✓ Any food vendor, who gives to the purchaser
written statement is given that the food a warranty in writing which is false, shall be
complies with the provisions of this Act, the liable to:
rules and the regulations • Imprisonment for a term which may extend to six
months
rupees.

Business without license
If a food operator manufactures, sells, offers for sale,
stores or distributes or imports any food without the
prescribed registration or license, he shall be liable to:
less than three days
• Fine of five hundred thousand rupees but which
shall not be less than ten thousand rupees

Pakistan Hotels and Restaurant Act, 1976
• The Pakistan Hotels and Restaurants Act, 1976 and The Pakistan Hotels and
Restaurants Rules, 1977 is the law which deals with the registration and control of the
hotels and restaurants
• Owner of every restaurant or hotel shall from the opening apply to the controller for
registration, without first getting the hotel or restaurant registered and obtaining a
license under the Act no owner, (individual, firm, company) is allowed to carry on his
business
• For registration of a restaurant, the owner of the restaurant is required to conform to
the standard of health, hygiene, comfort, medical certificates of staffs in good health,
its building is structurally safe and to fulfil other requirements in accordance with law
• After getting registration the owner of the restaurant is required to obtain a license
from the controller
• Normally, registration and license are issued at the same time
• A license granted shall remain in force for a period of one year and is renewable
every year on payment of prescribed government fee
Open and operate business including under
mentioned services:
• Choosing the hotel or restaurant entity, should it be
sole proprietorship, firm or company
• Drafting lease agreement
• Trademark registration for the name of hotel or
Opening a restaurant
• Drafting of employment contract
Hotel or • Drafting of confidentiality agreement
Restaurant • Drafting and negotiating all agreements for the sale
and purchase of hotels or restaurants
• Drafting and negotiating franchise agreements
• All litigation arising out of vendor, partner, employee
and customer disputes

Role of
PUNJAB FOOD AUTHORITY
✓ Enforce the provisions of the ordinance
✓ Regulate and monitor the food business in order to
Introduction provide safe food
The Punjab Food Authority (PFA) is an ✓ Formulate standards, procedures, processes and
organization under the management guidelines in relation to any aspect of food
of the Provincial Government of
Punjab. Since its establishment in ✓ It includes
2011, the Punjab Food Authority
(PFA) has been committed to ensuring • Food business
the safety and quality of food in the
Punjab province of Pakistan. • Food labelling
Director General • Food additive, and
Raja Jahangir Anwar
• Specify appropriate enforcement systems
Vision Statement
The Punjab Food Authority aims to ✓ Enforcement of food safety and quality standards
ensure safety and quality of all the
food items and products ✓ Specify procedures and guidelines for setting up
and up-gradation of food laboratories

✓ Specify licensing, prohibition orders, recall
procedures, improvement notices and prosecution
Introduction in the court of law
✓ Provides scientific advice and technical support to
The Punjab Food Authority (PFA) is an the Government in matters relating to food safety
organization under the management
of the Provincial Government of ✓ Establishment of food laboratories
Punjab. Since its establishment in
2011, the Punjab Food Authority ✓ Organize training programs in food safety and
(PFA) has been committed to ensuring standards
the safety and quality of food in the
Punjab province of Pakistan. ✓ Promote general awareness regarding food safety
and standards
Director General
Raja Jahangir Anwar ✓ Certify food products/items for export
Vision Statement ✓ Forward and backward traceability of food items
The Punjab Food Authority aims to
ensure safety and quality of all the ✓ Surveillance including collection, integration,
food items and products analysis, interpretation and dissemination of data
related to food and nutrient intakes

Working
Domains
✓ The Punjab Food Authority (PFA)
is responsible for ensuring the
safety and quality of the food
supply in Punjab
✓ To achieve its goal, the PFA has
established several working
domains that cover all aspects of
the food supply chain

✓ Formulation and enforcement of food
safety and quality standards
• Responsible for developing and enforcing food
safety and quality standards
• Ensures food products sold and consumed in
Punjab meet the required standards
✓ Registration and licensing of food

manufacturers and outlets
• The PFA regulates food businesses by
requiring them to register or obtain licenses
before they can operate
• Ensures businesses comply with food safety
regulations and standards

✓ Laboratory accreditation of edible items
• Accredits laboratories to test and analyze food
products to ensure safety and quality
• It makes laboratories to have the required
equipment, expertise, and quality control
measures to provide accurate and reliable
results
✓ Food safety inspections and audits

• Conducts regular inspections and audits of
food businesses
• Ensures compliance with food safety
regulations and standards
• Includes areas such as hygiene, sanitation,
food handling, and storage practices
✓ Food recall and emergency response
• PFA has a system in place to respond to food
safety emergencies and recalls
• It includes identifying and tracking potentially
contaminated food products, notifying the
public and relevant authorities, and taking
appropriate action to prevent harm to
consumers.
✓ Food education and awareness

• PFA conducts educational campaigns to
increase public awareness about food safety
and healthy eating habits
• This includes providing information on food
safety practices, nutrition, and food labeling

✓ Food labeling and packaging
• PFA regulates the labeling and packaging of
food products
• It provides consumers with accurate
information about the contents and nutritional
value of the food they are purchasing
✓ Food import/export control

• PFA also regulates the import and export of
food products
• It makes feasible only for safe and healthy
food products to enter and exit out of Punjab

✓ Reducing the prevalence of adulterated
milk
• PFA has taken several measures to reduce the
prevalence of adulterated milk in Punjab
Achievements • Consequently, the percentage of adulterated

milk in the province has dropped from 80% to
Punjab Food Authority (PFA) has 22% in few years
achieved significant successes in
ensuring food safety and promoting (Source: The Express Tribune)
public health in Pakistan
✓ Improving food safety in school canteens
• PFA has introduced a grading system for
school canteens, which rates them based on
their compliance with food safety regulations
• As a result, the percentage of canteens
receiving an A grade has increased from 14%
to 64% in just two years
(Source: Dawn, 2019)
✓ Banning harmful food additives
• PFA has banned several harmful food
additives over the years, with the specific bans
on Chinese salt and Ajinomoto
Achievements (Source: The Nation, 2017)
Punjab Food Authority (PFA) has

achieved significant successes in ✓ Improving food safety standards in
ensuring food safety and promoting
public health in Pakistan restaurants
• The authority has conducted regular
inspections and raids on restaurants to ensure
their compliance with food safety standards
• As a result, the percentage of restaurants
receiving an A grade has increased from 24%
to 70% in just three years
(Source: The News, 2019)
✓ Improving food safety in street food stalls
Achievements • The authority has conducted regular
inspections of street food stalls to check that
Punjab Food Authority (PFA) has
achieved significant successes in they meet the required standards
ensuring food safety and promoting
public health in Pakistan
• As a result, the percentage of street food stalls
receiving a license has increased from 30% to
90% in just two years
(Source: Dunya News, 2019)

Thank you

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MODULE 3

Food and Nutrition Entrepreneurship

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 2

Introduction ✓ There are four types of businesses

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 4

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 5

Choose Find a Register Register Register

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 6

Obtain Reserve Open Apply

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 7

Registration ✓ Reserve the name, register company, pay

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 11

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 12

✓The SECP is responsible for regulating and

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 13

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 14

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 16

✓Banks provide financial and advisory services to

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 17

✓FBR is the central agency of the Pakistani

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 18

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 21

Benefit of It is ensuring that no

Business same structure

Registration It is important for

Process businesses to register

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 22

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 24

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 25

Labelling of ✓ Specification of net weight of the food

Pre-Packed ✓ Specify batch and lot number

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 26

Specific details for milk products Special requirements

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 27

Product o How to use the product

Packaging • Primary opportunity to set your product apart from

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 28

Packaging • It’s important to know who you’re talking to

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 29

✓ Use graphics to communicate

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 30

✓ Put your pitch front and center

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 31

✓ Give your packaging a second life

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 32

5/16/2023 NIFSAT - University of Agriculture, Faisalabad. 33

Don’t Forget Your

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✓ Offence by large scale manufacturers

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✓ Failure to comply with the directions

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