Do you need a license to sell baked goods from home?
Hey! Important note: The Home/Micro Bakery licensing process varies in each country AND in each state/province around the world.
I’ve been helping home bakers (mostly from the USA, but all over the world) create Home/Micro Bakeries with consistent orders since 2018.Β
We’ve never run into a situation where a home baker has no option to sell anything in any way to anyone.
In many cases, they limit WHAT you may bake and HOW you may sell it. But they hardly ever forbid it entirely. If there’s one thing I can tell you for sure, it’s that you’ve always got options to MAKE it work!
This post will give you an overview of the process, but you’ll also need to take responsibility to double-check the Cottage Food Laws in your country (you’ll get many resources in this post to get you started!).
My goal is to put your mind at ease, and show you that getting your Home Bakery licensed and legal isn’t actually that complex! You’re gonna be just fine, I promise π
Why You Need a Home/Micro Bakery License
If you live in the USA, it’s important to note that every state and city/town has its own Cottage Food Laws!
But lucky for you, The Institute for Justice spells out the laws of each state on their site (it’s super thorough and they break it all down) >> click here to check it out.
At this point, ALL 50 STATES allow direct sales.
This is freakin’ FANTASTIC news! Because it means that once you’ve got your license, you can sell directly to anyone.
Some states don’t allow wholesale baking (baking for coffee shops, restaurants, or anyone else that resells your baking) or online orders (selling through a website).
BUT direct sales include:
… selling to friends, family, colleagues, etc.
… selling to offices, bnbs, and hotels (It’s legal because they don’t resell your baking! They’re the best repeat clients ever. My free email course, Repeat Order Ready, goes deeper into how to get repeat clients like these).
… selling directly to customers at food/farmers’ markets (mostly legal, but double check your Cottage Food Laws).
In South Africa (where I live) they wonβt really hunt you down and fine you if you do not have the correct documentation β we are a third-world country after all. In other countries, they might fine you though.
The main reason for getting a home bakery business license and certificate is that it’s ETHICAL and LEGAL. I wouldn’t want to bake goods for the public in my kitchen if I knew something wasn’t up to scratch. Would you?
The municipal standards for health and safety are there to protect us and our clients.
Most food markets also ask for yourΒ Home Bakery license before you’re allowed to sell there. If you donβt have it and an inspector decides to pay a visit to the food market, both you and the food market owners could get into a lot of trouble β a severe fine or even being shut down. Whoops!
Certificate & License Required for Home Bakery
Home/Micro Bakeries typically need to apply for 2 different documents.
A Certificate of Acceptability (Name Might Vary) from the Health Department:
This certificate refers to the condition of your food preparation facilities, in other words your homeβs kitchen. An environmental health and safety officer will visit your home to inspect your kitchen and bathroom facilities.
They typically look out for the following criteria:
- Theyβll naturally expect a very clean kitchen, so clean your entire kitchen, from top to bottom. Remember to clean inside your fridge and cupboards as well.
- Kitchen counter tops are nonβporous. This means that they don’t absorb any substances during food preparation. For this reason, your countertops should always be treated to be waterproof. They donβt have to be stainless steel, they should just be waterproof. If they are not waterproof, they will absorb food and become infested with bacteria. Not cool.
- Adequate washing facilities. You donβt need a massive dishwasher or 3 sinks. They just check that you have running hot and cold water and at least 1 basin β preferably 2 though.
- Bathroom facilitiesβ quite obvious I guess. It is important that you have a bathroom for staff to use away from the kitchen.
- Adequate storage and packaging. You should have airtight containers to store baked goods in overnight and also for transportation to restaurants and food markets. When it comes to packaging, the standard cake boxes from a packaging store are totally fine.
- Adequate refrigeration. Sometimes theyβll check to see how cold your fridge is. It should be 4Β°C/40Β°F or lower.
- Hairnets and Apronsβ also quite obvious. Also have plastic, non-latex gloves for handling your bakes when packaging them.
Some countries require you to label and weigh all your baked goods. Donβt let this intimidate you. Print out stickers for all your products. You can create pretty designs for free on Canva.
You donβt need to buy those super expensive electronic food scales to weigh your bakes. Just use an affordable digital kitchen scale. Itβs the best $15 – $20 youβll ever spend!
If you have large cakes you need to weigh that donβt fit on the scale, just place a small chopping board on top of the scale first and then you can add the cake on top of that. This way it will fit onto the scale and youβll be able to weigh it accurately.
Hawking in Meals Business License:
This license refers to producing goods on one premises and transporting them to a different premises to be sold there. This is typically what Home Bakeries do, since we donβt have a restaurant or cafΓ© at our own homes.
Whether you supply goods to restaurants, cafes or delis or sell your goods at food markets, this is a license you really need to do so LEGALLY.
The same Environmental Health and Safety Officer will ask to see your food transportation containers. They should be airtight and watertight with lids.
An Inspector may also visit you at any food marketΒ you do. There are also some additional criteria you will have to meet if you plan to prepare bakes at the food market itself and not at home. You can download all the additional guidelinesΒ for informal food trading.
RELATED: How to Create a Home Bakery Business Plan
Applying for Home/Micro Bakery License
- Use Google to find your cityβs main Municipal Office. Phone them and ask to speak to someone in the Environmental Health and Safety Department. Explain the nature of your business (*important* Tell them you won’t be working with meat at all!) and ask them what licenses and certificates you will need to apply for.
- Decide which day you want to go to your municipal offices. Be sure to double check their office hours β in South Africa they are only open for like 5 hours a day!Β Take your Identification Document along and a black pen.
- When you arrive at the Municipality Building, ask staff to direct you to the Environmental Health and Safety Department.
- Wait in line β yay. When itβs your turn, explain the nature of your business clearly so that they can give you the correct application forms.
- Complete the forms and pay the fee. In some countries & states it’s not too expensive, but in others it will cost more. But think of this in terms of investment. Getting this license will ENABLE you to make money from your baking. Thus, the license will essentially pay for itself and so much more!
- The Environmental Health and Safety Department will the contact your closest Environmental Health and Safety Office. They will then contact you somewhere in the next 2 weeks to set up an appointment for inspection.
- Make sure your home is nice and clean and all your pets are outside during the inspection. Be friendly and show the official your kitchen and bathroom facilities. Be available so that you can answer any questions they may have Also have your hairnet and apron on standby so that you can show them to the official. Once they are satisfied they will leave.
- The environmental health and safety office issues your Home Bakery certificate and license. The Municipality will phone you to come and collect it, but they also offer to post it to you if you live far out of town. The whole process takes about 2 – 4 weeks from start to finish.
Note that the Home Bakery Certificate and License are linked to your specific baking premises (your home). If you move house you will need to apply for these documents all over again.
I scanned my Home Bakery Certificate and License the moment I receive them. Itβs always handy to have them on file in case the physical copies get lost! Which tends to happen in our homeβ¦ to MANY official documents… like our marriage certificate!
Home Bakery Business Registration
It is not compulsory to register your Home Bakeryβs name if you are a sole proprietor. Sole proprietor simply means that you (1 person) are the exclusive owner of your business. If you bake from home you are a sole proprietor by default until you decide to register your business as a CC, LLC, etc.
Some countries and states will require you to register your business as an LLC or Pty (Ltd) before you are allowed to start selling your baking.
Youβll need to do some research to find out how things work in your country and province/state.
Home Bakery Insurance
This also varies greatly from county to country. Iβm aware that folks in the USA sue people for almost anything if they have the power to do so. In South Africa we canβt really be bothered.
I donβt believe insurance is necessary for a Home Bakery β no matter what country you live in. If you are worried that someone may sue you because they had an allergic reaction to your bakes, then include a thorough disclaimer on your Home Bakeryβs website or Facebook page.
You can check out my Home Bakeryβs disclaimer. Just copy it and sub in your own Home Bakeryβs Name and details where applicable.
Obviously you should have household insurance to protect your entire home against theft, fires or floods. All your home bakery equipment will automatically be included in that. One of the many perks of baking from home!
RELATED: How to Create a Home Bakery Business Plan
And thatβs it my friend! Please let me know if you have any other questions by commenting below. Iβll be more than happy to help.
Chat soon
Aurelia π
POPULAR BAKING BIZ TIPS
POPULAR BAKING TIPS
Got a question? Something to add? Letβs chat in the comments section down below! (I respond to every single comment)
hi Aurelia!
you noted “If you bake from home you are a sole proprietor by default until you decide to register your business as a CC, LLC, etc…” what happens/ what restrictions change when you register as an LLC, but are still technically a sole proprietor/ have no employees/ home baker?
thank you!
Hi Rachel! Great question π Your business definition depends on your registration – NOT your day to day functioning in your business. My business is registered as a Pty (Ltd) here in South Africa – has been for 4 years now – but I’ve always worked alone. Your business structure is defined by your registration and nothing else.
Good day. (Fellow South Africa – in Pretoria) Thank you for your blog. I would just like to know if you go wholesale with your rusk is the rules and regulations different? And how do one go about in obtaining all of the things needed to go wholesale, do you know? π
And then if if do go wholesale with your rusks do you need a different kitchen than your home kitchen?
Can one also find out if a person that went wholesale if they are registered anywhere?
Thank you
x
Hey Nicky! As far as I know you can (in South Africa) get by with just a Certificate of Acceptability and a Hawking in Meals Business License as described in this post. But I highly recommend that you go to your local municipality to hear directly from them how it works in Pretoria π
Hi Aurelia , I am Stephanie I live in Johannesburg. I am planning to open a baking business but I am so scared of the laws and regulations required…
i really don’t know where to start from, special with the legal and regulations aspects.
Your article was very helpful thank you very much.
I still advice your on where to start and how.
Thanks
Hey Wabo! No need to be scared π Just follow the instructions in this post and you’ll be fine! You can also check out this blog post where I guide you through the process of starting a Home Bakery Business >> https://philosophyofyum.com/the-ultimate-guide-to-starting-a-home-bakery-business/
Hi Aurelia.
Trust you are doing well.
Excellent site.Keep it up.
I would like to find out something please.
In a complex that I stay here in cape town there is other people who run the bakery from their unit.
They bake cookies.
When mentioning or bringing it to the attention of the body corporate they just send out a sms that no one is allowed to run a business from home.They just ignore this.
What does the rules say about a health inspector ,especially when you are not allowed to do this.Furthermore they smoke on the premises.
They also employ people.
Can you please let me know.
Many thanks.
Hey Marinus, so sorry for only getting back to you now. Been so busy with family events over the holidays π Legally speaking, they need to have a Certificate of Acceptability (linking to environmental health & safety. They come do an inspection once you apply. Smoking should be 100% separated from the food production area) and a Hawking in Meals Business License. Both are acquired through the local municipality. When you have these documents you’re totally allowed to produce baked goods in a residential property. If it’s against your body corporate’s rules, then your body corporate needs to enforce their rules – not the municipality in this case. If you’re unsure if they have the required license & certificate, you can report them to your local municipality. But if your body corporate doesn’t have enough motivation to stop their business, then there’s nothing you can do I’m afraid. Good luck!
Hi Marinus
I have seen this in Capetown a home business is a free entry land use. In other provinces, you would need to apply for a Town Planning consent to be able to do a home business and you require consent from your body corporate or adjacent neighbours it also comes with conditions: trading hours, no advertisement, no traffic, no noise and should not cause a nuisance etc. I suggest you contact your local Town Planning department and pen down all the issues that you might have, they have an obligation to inspect the premises to see if they comply with regulations and at least attached some conditions to their home business.
Hi Aurelia :). Thank you for this informative post. I just wanted to find out if you need to have a business name when applying for the health certificate, or do they just put your name on it rather than the trading name you might decide on? Still working on a business name so wondering if I need to finalize the name before I can apply. Thank you.
Hey there Sue! You will need to fill in your business name when you apply for a health certificate yes. But don’t let this hold you back from applying! I got my health certificate and changed my business name about 2 years later, so then I just did it again. Sometimes it takes a while for the IDEAL business name to come to you. Don’t let that stop you from going forward with your business. Choose the best name you can come up with right now and then GO FOR IT!! If you need help choosing a business name, check out this post >> https://philosophyofyum.com/home-bakery-business-name/
Hi Aurelia
I thankfully stumbled apon a Facebook post and so greatful for it. I’m based in Johannesburg and looking to start my own home baking business, after being recently retrenched due to covid pandemic. The information you’ve provided is so helpful, I just have a question regarding labels and packaging . Do I need to label products with the standard things like ingredient list, date baked, weight etc or would a company name label suffice. And are there any other specifications or regulations regarding the packaging. Looking forward to hearing from you.
Kind regards
Natali
Hey Natali, thanks for your comment π Don’t often get to meet a fellow South African on my blog! In South Africa we’re not required to add this kind of nutritional info on our packaging – unless you plan to bake rusks for Spar or something. If you’re just going to sell directly to clients or to coffee shops, you don’t need to add the nutritional info. It is however good practice to have this info on standby if a client asks for it.
Hi Aurelia
Im from KZN , South Africa. My wife is thinking about opening up a home based bakery. She will be the only person baking without any additional employees. She will be using the same kitchen that we use for preparing food for our own consumption. Will this be fine?
Our customers would be local residents in my area and not any shops or restaurants.
Could you please advise on the necessary permits/licences that we will require and approximate timelines that this process will take to completion.
Thank you
Kind Regards
Nesh
Hey Nesh! Thanks for your comment π We’re really VERY lucky here in South Africa because the rules for Home Bakeries aren’t as strict as in first world countries. In South Africa we’re generally allowed to bake and sell from our existing HOME kitchens – provided you meet all the kitchen requirements listed above in this blog post. BUT, still go to your local municipality and ASK them what you need to do to legally bake and sell from home. I don’t live in KZN, so I can’t tell you for sure what the rules are over there. When you go ask them, they’ll tell you exactly what you need to do π
Hi Aurelia, I submitted a comment a week or so ago but do not see it listed or have not had a response (suppose I made some or other mistake when submitting?).
Me and my wife are baking “from home” and specialize in event cakes (Birthdays, weddings, Christening, Confirmation etc., etc).
Under the “lockdown” Level 4 regulations, there are confusion if we as home bakers are allowed to start baking. The Government Gazette description is not clear on this. Can you perhaps advise who/which Government department we should contact?
We are based in the Western Cape Winelands area. I have tried to contact the Cape Winelands District Municipality a number of times but it seems their offices are closed. Thank you & kind regards, Johann.
Hi Aurelia, Me & my wife are baking from home, no other employees. Our facilities have been inspected (annually) and certified by the Cape Winelands District Municipality. Although I have studied the Government Gazette (dated 29 April 2020), I am still not clear if we are allowed the proceed with our business within the Level 4 rules.
We produce mainly event cakes to private clients & a few coffee shops. We deliver or clients can collect from our “collection box”. The collection box is on our premises, +/- 15 meters from our house.
I will appreciate your comments.
Thank you & kind regards,
Johann
Hey Johann! Thanks for reaching out π You are allowed to function on level 4 yes! It sounds like you’d basically be operating as a type of restaurant that does deliveries or collections. Go to http://www.bizportal.gov.za to get all the details you’re looking for and apply for your free certificate.
Hi Aurelia, as I submitted my second message minutes ago, your reply “appeared”! Thank you very much for that! I will immediately follow your recommendations and inform other home bakers in our area as well.
Thank you again & kind regards,
Johann
hi Aurelia,
I started a confectionery business about 32 years ago. In those days it was the peri urban authorities responsible for authority for areas in the country.
i have since moved to an urban area and not got the necessary COA. Is it possible to still get one without being fined ?
Gus
Hey Angus, thanks for your question! You won’t get fined or be in trouble. Just apply for the COA as soon as you can π
Hi there Aurelia,
Thanks so much for a very informative site. I am a home baker in South Africa and am seriously considering opening a small home baking business from home. I have been reading the government regulations and would like to ask you if it will be problem getting a health certificate if one is baking in an open plan kitchen? Many thanks and kind regards, Jenny
Hey there Jenny π So great to meet a fellow South African baker! An open plan kitchen is no problem at all! Mine is open plan too π
Hi thank you for putting this information in one article! Super useful. Do you k ow if kitchens in SA need to be closed off or is open plan okay?
Hey Julia, thanks for your comment! I’m so glad you found this post useful π Open plan kitchens are totally fine yes. Ours is open plan as well.
Great! Gauteng may be different but this is good to know.
Hi Aurelia! I’m from chicago Illinois and I wanted to do Home baking but ai dont know know how and where to start. I learnt to bake because I was stress before when my baby got a vascular ring and she needed a surgery when she was 13 months, but she’s doing very well now. I really want to do it. I’m happy and i get so inspired whenever clients always give me compliments on my bake goods. I hope you can help me. You inspire me so much too!
Hey Janine, thanks for your comment! I’m terribly sorry for taking so long to respond – December has been HECTIC! I saw that you did sign up to the Free Resource Library, so I hope you’ve been getting some clarity on how & where to start. The Home Bakery Business Plan template in the resource library is a great place to start!
Thank you so much for your time and effort in sharing this. It really makes a home baker feel “Its possible” Thank you for your kindness. Missy.
SO glad to hear you feel encouraged by this post Missy! π
Hi Aurelia, I’m soaking up this info like a sponge.I tried clicking on the Disclaimer but it’s giving me an error message.Thank you,
Catherine
Thanks for letting me know Catherine – so sorry about that! I’ve just fixed it π
A very interesting publication Aurelia, I am going to consult how it is here in England, I really have no idea how it is. I just know that here, everything is a problem, so it’s better not to take that risk. Really very interesting post… always … Thank you very much!
Hi dearest Trinny! It’s definitely better to not take risks with your city’s municipality π Please let me know what the procedures are in the UK? I would love to include it in this post – I’ll obviously give you full credit xxx
Hi there,
Did you manage to find out any information about the rules and regulations in England?
Hey Telara! Thanks for your comment π As I don’t live in England it’s pretty much impossible for me to find out the necessary information. I encourage you to go to your local city hall (municipality) and ask them what the requirements are in England. They should be able to tell you exactly what you need to do π