FSSAI Registration and License for Starting a Food Business

Published On: Nov 13, 2019Last Updated: Oct 14, 20235.5 min read

What is FSSAI? 

FSSAI is an abbreviation for the Food Safety and Standards Authority of India. This organisation works for securing the laws relating to Food Business in India and thereby establishes standards for Food Business Operators (FBO) in the Food Industry.

Registration and Licenses under the FSSAI Act 

As per the Act, no person shall commence food business without getting FSSAI Registration. Whether a person shall apply for Registration or License depends on various criteria as discussed under:

Registration: 

Eligibility to obtain Registration

Most individuals find finds sole proprietorship registration a lucrative way to start a food business. In it, FSSAI registration is a basic license that is required for all the Petty Food Business Operators. Petty Food Business Operators are those:

  1. Who manufactures or sells any article of food or is a petty retailer.
  2. Who are hawkers, itinerant vendor or a temporary stall-holder.
  3. Small scale or cottage industries relating to food business
    • Having Annual Turnover Less than Rs.12 Lakhs.
    • The production capacity of food (other than milk and milk products and meat and meat products) does not exceed 100 kg/litre per day.
    • Procurement, handling and collection of milk are up to 500 litres of milk per day.
    • Slaughtering capacity is not more than 2 large animals or 10 small animals or 50 poultry birds per day.

Documents required for applying for Registration

  • Photo Identity of FBO.
  • Proof of possession of Place of Business such as Rent Agreement, NOC etc. 
  • Product List to be dealt with.
  • Constitution of Business such as Incorporation Certificate, Partnership Deed etc. 
  • Plan stating Food Safety Management System.
  • Form-A Completed and Signed.

Procedure for Obtaining the FSSAI Registration

  1. Form A completed and signed by the applicant should be submitted to the Food and Safety Department.
  2. Whether the application is accepted or rejected shall be communicated to the applicant in writing within 7 days of making the application.
  3. In case of acceptance of the application, a registration certificate shall be granted with the registration number and photo of the applicant.

This certificate should be displayed at the place of business during business hours.

Licenses

Food Business Operators other than mentioned above are required to obtain FSSAI License. This License can be further categorised in two categories: State and Central FSSAI License based on the size of the business.  

Central License

Large Food Business Operators or Manufacturers and Importers require Central FSSAI License. Below-mentioned is an inclusive list of FBO requiring Central License:

  • Restaurants with a turnover of more than Rs.20 crores per year.
  • Caterers with a turnover of more than Rs.20 crores per year.
  • Food vending agencies with more than 100 vending machines or having machines in two or more states.
  • Cold storage units with a capacity of more than 10,000 MT.
  • Food storage with a capacity of more than 50,000 MT.
  • Food business activity in Airport or Seaport or Railway Stations.

Documents required for obtaining Central License

  1. Form-B duly completed and signed.
  2. Blueprint of the area location with the dimensions and operation wise area allocation.
  3. Contact Details of Proprietor/Partners/Directors.
  4. Sources of Raw materials such as milk, meat etc. if applicable.
  5. Proof of Possession of Premises.
  6. Photo-ID and Address Proof of Proprietor/Partner/Director.
  7. Name and List of equipment and machinery used with the number and installed capacity.
  8. Product List that is to be manufactured.
  9. Certificate of Ministry of Tourism, if applicable.
  10. MCA Certificate for 100% EOU.
  11. NOC issued by FSSAI Department.
  12. Water Report from a recognised health laboratory to analyse the portability.
  13. Proof supporting Turnover of Vehicles, if applicable.
  14. IE code document issued by DGFT.
  15. License copy/NOC from the manufacturer.
  16. NOC from Authorised Local Body or Municipality.
  17. In the case of units manufacturing carbonated water a report of Pesticides Residues of water from recognised public health centre is required.
  18. Proof supporting Turnover, if applicable.
  19. FSSAI Declaration Form.
  20. Plan stating Food Safety Management System.

Government Fees for obtaining Central License 

Fees for obtaining New License/Renewal of License/Modification of License: Rs.7500.

Fees for obtaining a Duplicate License: Rs.10.

State License

All the FBO who do not classify for Central License or FSSAI Registration are required to take State License. Below mentioned is an inclusive list of FBO requiring to obtain State License:

  • Restaurants and bars having a turnover of up to Rs.20 crores per year.
  • Food retailers/suppliers with a turnover of up to Rs.20 crores per year.
  • Cold storage unit with a turnover of more than Rs.12 lakhs per year.
  • Storage unit with a turnover of more than Rs.12 lakhs per year.
  • Food transporters having up to 100 vehicles and a turnover of up to Rs.30 crores per year.
  • All grains, cereals, pulses milling units without any limit on production capacity.

Documents required for obtaining State License

  1. Form-B duly completed and signed.
  2. Blueprint of the area location with the dimensions and operation wise area allocation.
  3. Contact Details, Photo ID and Address Proof of Proprietor/Partners/Directors.
  4. Product List that is to be manufactured.
  5. Authority Letter with Name and Address of Responsible Person.
  6. In the case of units manufacturing carbonated water a report of Pesticides Residues of water from recognised public health centre is required.
  7. Affidavit of Proprietorship/Partnership Deed/MOA.
  8. Name and List of equipment and machinery used with the number and installed capacity.
  9. License copy/NOC from the manufacturer.
  10. Certificate obtained under the Coop Act 1861/Multi State Coop Act 2002.

Fees for Obtaining State License 

Hotels having up to 4 Stars: Rs.5000.

Restaurants/Café/Canteens/Other FBO: Rs.2000 

Production units having production below 1 MT and in case of milk unit ranging from 2.5 MT to 500 MT per annum: Rs.3000 Production units having production exceeding 1 MT and in case of milk unit ranging from 501 MT to 2500 MT per annum: Rs.5000.

In Case of Non-Compliance 

All the persons having valid registrations or Licenses have to adhere to the FSSAI Act, 2006. Regular inspection is carried by the Food Inspector who identifies the compliance level on the basis of the checklist.

In case of noncompliance few of the penalties are listed below: 

Sr.No Particulars Amount of Penalty 
Compromise in quality of food making it noncompliant to the Act Rs. 2 Lakhs (Rs.25,000 in case of Registration Holder) 
Non Compliance with the direction given by Food Safety Officer Rs. 2 Lakhs 
Unhygienic Processing/ Extraneous Matter in Food Rs.1 Lakh 
Sub Standard Food Rs.5 Lakhs 
Misbranded Food Rs.3 Lakhs 
False Description/Misleading Advertisement Rs.10 Lakhs 

For everyone planning to enter the Food Industry (it is on the list of Top 5 Growing Industries of India) obtaining FSSAI is the first step.

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Shreeda Shah
About the Author

Shreeda Shah

Shreeda Shah is a Chartered Accountant associated with Legalwiz.in as a Business Advisor. She has a good expertise over Direct Taxation and Indirect Taxation compliances.