The most significant factor when starting to run a food business in India is food safety. Be it a restaurant, cloud kitchen, food processing unit, or a retail outlet, an FSSAI license is not merely a requirement to meet the legal requirements but also demonstrates the business’s desire to instil trust and safety. The Food Safety and Standards Authority of India (FSSAI), which acts as the food quality regulator of the country, takes care to make sure that all food businesses adhere to the right safety and hygiene practices to ensure the safety of consumers.
The blog is a detailed guide to FSSAI licensing in India and includes the types of licensing, eligibility, procedure, documents needed, advantages and renewal of the license.
What is FSSAI Licensing?
An FSSAI license or food licence in India is a licence given to food business operators (FBOs) to ensure the food they sell or produce is safe to eat. The Food Safety and Standards Act 2006 has made it mandatory.
All the businesses related to food (whatever the size may be) should be registered under FSSAI. This is to manufacturers, traders, distributors, retailers, restaurants, hotels and even online food delivery service providers.
Types of FSSAI License in India
- FSSAI Basic Registration
- Appropriate for small enterprises and startups.
- required where the annual turnover is not more than 12 lakh.
- Usually sold to small-scale distributors, hawkers and petty food manufacturers.
- FSSAI State License
- Businesses that require between 12 lakh and 20 crore.
- Applies to food manufacturing units, storage facilities, transporters and restaurants that are medium-sized and are located in one state.
- FSSAI Central License
- Mandatory where the turnover of the businesses exceeds 20 crore.
- Necessary for importers, exporters, large manufacturers, and food chains that operate in more than one state.
Who Needs an FSSAI License?
The FSSAI food license is required in a broad category of businesses, such as:
- Hotels, restaurants and cafes.
- Food packaging and processing units
- Cold storage, dairy units and transporters.
- Exporters and importers of food.
- Online food aggregators such as Swiggy, Zomato and cloud kitchens.
- Retailers and wholesalers that deal with food products.
In simple terms, everyone, either directly or indirectly engaged in the food supply chain, has to acquire an FSSAI license.
Required Documents for FSSAI License
The list of documents can also differ based on the kind of license, yet more often than not, the following are always required:
- The FSSAI registration form is completed.
- Passport-size photographs are required of the applicant.
- Identity and address identity (Aadhar, PAN, voter ID)
- Evidence of the location of business premises (rent agreement, utility bill, ownership papers)
- The food safety management plan (FSMS) includes the following:
- Municipality/local body NOC.
- Incorporation certificate/partnership deed (of companies/firms)
- Import Export Code (IEC) of import/ export enterprises.
FSSAI Online Application Process
FSSAI registration is very easy, and it can be accomplished online by using the Food Licensing and Registration System (FoSCoS).
Step 1: Determine the Category
Determine what type of license your business needs: Basic, State or Central.
Step 2: Create an Account
Go to FoSCoS portal, register a login ID and choose the right license.
Step 3: Complete the Application Form.
Provide information on your business, nature of activity and turnover. Include required documents.
Step 4: Payment of Fees
Pay via the internet, based on the nature of the license selected.
Step 5: Checking and Verification.
An inspection can be done prior to granting approval in certain cases.
Step 6: License Issuance
Upon approval, the license is issued in digital form and can be downloaded from the portal.
FSSAI License Renewal and Validity
Depending on the fee charged during the registration process, the FSSAI license lasts between 1 and 5 years on average. Any business has to seek renewal at least 30 days prior to expiry to avoid penalties. There is a risk of attracting large fines and business discontinuation due to the operation with the expired license.
Benefits of FSSAI License
- Legal Compliance: Getting a food license in India will guarantee that your company is operating within the legal bounds of food safety laws.
- Customer Confidence and Brand Equity: A food labelling logo of an FSSAI creates consumer confidence and serves as a symbol of safety and hygiene.
- Business Expansion: A business can increase its operations and even sign contracts with big retailers or governmental institutions with a valid license.
- Better Market Reach: Wider access to the market is needed as food aggregators, supermarkets and online platforms demand vendors be licensed by FSSAI.
- Quality Assurance: It is a sign that your goods comply with food safety regulations in the country, which provides a competitive advantage.
Penalties for Non-Compliance
Operating a food company without an FSSAI license may result in very serious fines:
- Fine up to 5 lakh in respect of selling without license.
- Extreme forms of food safety violations include incarceration.
- Shutting down of business.
- Loss of brand name and consumer confidence.
Challenges of FSSAI Licensing
Although the process is simple, some of the challenges that businesses can encounter include:
- Misunderstanding of the type of license to choose.
- Denial on the grounds of missing documents.
- Verification/inspection delays.
- Poor knowledge of renewal schedules.
A professional FSSAI registration consultant eases the process and assists businesses to save undue delays.
Conclusion
FSSAI licensing is not only a mere regulatory obligation, but also a necessary procedure in establishing a reputable, reliable, and trustworthy food business in India. Small street sellers, big multinational food chains, and each food business operator are required to be registered by the FSSAI. Not only will having and renewing your license correctly and on time help keep you legal and compliant, but it will also help you gain consumer trust, increase your market base, and protect your brand name.
There is no such thing as an optional FSSAI food license in the modern competitive food industry that can support an effective and sustainable business.
