Features of FSSAI License
An FSSAI licence ensures that food businesses operate in accordance with national food safety standards, helping promote public health and strengthen consumer trust.
It is mandatory for all food-related businesses and ensure compliance with established food safety regulations.
FSSAI certification confirms that food products meet the hygiene and safety benchmarks set by the authority.
It boosts consumer confidence by assuring customers of consistent quality and safe handling practices.
It enhances the credibility of food businesses, helping them attract customers and access better market opportunities.
It supports the maintenance of uniform food safety standards across all states in India.
It requires proper labelling of food products, including ingredients, nutritional details, and expiry information.
It mandates periodic food safety audits to ensure ongoing compliance with FSSAI guidelines.
It helps businesses avoid penalties, fines, and legal complications arising from non-compliance.
It offers different categories of licences - Basic, State, and Central - based on the scale of operations.
It requires timely renewal to maintain compliance and avoid operational disruptions.
Importance of FSSAI license
No food-related business can afford to compromise on food safety. Ensuring that the food we consume is free from contamination is not just a legal obligation but also a moral responsibility. This is where the FSSAI plays a crucial role, acting as the regulatory body that oversees and controls the food industry.
Let’s take a look at the significance of obtaining an FSSAI State License:
Failure to register for an FSSAI Registration or License can result in severe penalties and be treated as a legal offence.
Food licenses are issued for a duration ranging from 1 to 5 years, depending on the business's needs.
Every individual or Food Business Operator (FBO) involved in the manufacturing, transportation, storage, or distribution of food products must secure an FSSAI Registration or License.
In India, the issuance of registration certificates or food licenses is governed by the Food Safety and Standards Regulations 2011.
The size and type of your business determine whether you require FSSAI registration or an FSSAI License.
Benefits of procuring FSSAI license
Builds Consumer Trust: Assures customers of food safety and quality.
Legal Advantages: Protects from legal obstacles and penalties.
Business Expansion: Enhances eligibility for business loans and business expansion opportunities.
Types of FSSAI license
FSSAI issues three main types of licenses based on the scale of operation and the nature of the food business:
FSSAI Basic Registration: For small-scale food businesses with an annual turnover below ₹12 lakhs.
FSSAI State License: For mid-sized food businesses operating within a single state with an annual turnover between ₹12 lakhs and ₹20 crores.
FSSAI Central License: For large-scale food businesses operating in multiple states with an annual turnover exceeding ₹20 crores.
FSSAI Importer License: For businesses involved in importing food products into India for commercial purposes.
FSSAI Exporter License: For businesses engaged in exporting food products from India to other countries.
Difference between FSSAI registration and FSSAI license
Parameter
|
FSSAI Registration
|
FSSAI License
|
Turnover Limit
|
Up to Rs. 12 Lakhs
|
State: Rs. 12 Lakhs to Rs. 20 Crores; Central: Above Rs. 20 Crores
|
Types
|
Basic registration required for very small businesses
|
State license for medium-sized businesses operating within one state; Central license for large businesses operating in more than one state, importers, exporters
|
Size of Business
|
Small, including start-ups, small scale manufacturers, and petty retailers
|
Medium to large, including manufacturers, traders, restaurants chains
|
Duration
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Valid for 1 to 5 years, choice at the time of application
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Valid for 1 to 5 years, choice at the time of application
|
Application
|
Relatively simpler process, intended for businesses with smaller operations
|
More comprehensive, requiring detailed documentation and information due to the larger scale and complexity of operations
|
Fees for Registration
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Fixed fee of Rs. 100, making it affordable for small businesses
|
Varies between Rs. 2,000 and Rs. 7,500, depending on nature of license
|
Publication
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Not required
|
Companies with Central License need to publish a declaration of FSSAI licensing in at least one national newspaper
|
Scope of Business
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Local or small-scale operations, often confined to a limited area within a state
|
State license covers larger operations within a single state; Central license is for businesses with operations in multiple states or involved in import/export
|
Inspection and Compliance
|
Subject to fewer inspections compared to licenses, focusing on basic hygiene and safety practices
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Rigorous inspections and adherence to comprehensive food safety management practices are required
|
Food business operators who require FSSAI registration?
In the landscape of India's food industry, the role of the Food Safety and Standards Authority of India (FSSAI) is paramount. This regulatory body ensures that food businesses operate within the framework of safety and quality standards, making FSSAI registration or licensing a crucial step for anyone in the food business sector. Interestingly, obtaining an FSSAI license can also be a strategic move for businesses looking to secure a business loan for expansion.
Virtually all entities involved in the food business need to register with FSSAI. This includes, but is not limited to:
Manufacturers and processors
Storage units and warehouses
Transporters and distributors
Retailers and eateries
Importers and exporters
Eligibility Criteria for FSSAI License in India
The Ministry of Health and Family Welfare has set specific eligibility conditions for businesses applying for an FSSAI licence. Applicants must check the following:
Annual turnover:
State Licence: Between Rs. 12 lakhs and Rs. 20 crore
Central Licence: Above Rs. 20 crore
Production capacity:
State Licence: Up to 2 MT per day for food, or up to 50,000 litres per day for dairy
Central Licence: More than 2 MT per day for food, or over 50,000 litres per day for dairy
Business type:
State Licence: Operations within a single state
Central Licence: E-commerce operators, import–export units, and multi-state businesses
Area of operation:
State Licence: Limited to one state
Central Licence: Operating across multiple states
Storage capacity:
State Licence: Up to 50,000 metric tonnes
Central Licence: Above 50,000 metric tonnes
Documents required for FSSAI license
Food business operators need to understand the documentation required for an FSSAI licence. The key documents include:
Form IX: Needed for basic and state registration, including nomination details.
Address proof: To verify the official business address.
Government ID: Any valid identity proof of the applicant.
Form A: Declaration form required for basic registration.
NOC from local authorities: A No Objection Certificate from the municipality.
Layout plan: A detailed layout of the premises for state registration.
Raw material details: Information about the source of raw materials used.
Form B: Application or renewal form for state and central licences.
Food Safety Management Plan: Required for central licence applicants to outline food safety practices.
Partnership deed or self-declaration: Proof of business structure for state registration.
How to get an FSSAI license in step by step procedure
Here's a step-by-step procedure on how to get an FSSAI license:
- Application filing
Submit Form A or Form B through the FoSCoS online portal, or file the form directly with the Food Safety Department, depending on the type of licence required.
- Application submission
Ensure the form is complete and all mandatory documents are attached before submitting it for review.
- Verification process
The authorities verify the application and documents thoroughly. Based on the review, the application may be approved or rejected. If rejected, the applicant is notified with reasons.
- Inspection of premises
An authorised FSSAI officer conducts a detailed inspection of the food premises to check compliance with food safety and hygiene standards.
- Licence issuance
Once verification and inspection are completed, the FSSAI registration certificate and licence number are issued to the applicant.
Cost of obtaining a food license
The cost to obtain a food license varies based on the type of license:
Basic registration starts from Rs. 100
State and Central licenses can range from Rs. 2,000 to Rs. 7,500, depending on the business scale and type.
Validity of FSSAI license
FSSAI licenses are valid for a period ranging from 1 to 5 years, after which they need to be renewed to continue operations.
FSSAI license renewal
FSSAI license renewal must be applied for within 30 days before the expiry of the current license. Failing to renew on time can result in a business having to apply anew, with potential penalties for operating in the interim. Being non-compliant with regulatory requirements such as FSSAI registration can affect your standing with lenders and negatively impact your business loan eligibility.
Penalties for FSSAI non-compliance
Like any other industry, this sector must comply with the relevant authorities and follow the FSSAI's laws and guidelines. Any breach of these rules and regulations will result in strict penalties, as it directly impacts public health and safety. Let’s explore the other consequences of such violations in more detail.
Sr. No
|
Particulars
|
Fine
|
1
|
Act's requirements for food quality do not match the quality of the food
|
Upto Lakks Petty Manufacturer – 2500/-
|
2
|
Food of poor quality
|
Upto 5 Lakhs
|
3
|
Mislabeled food
|
Upto 3 Lakhs
|
4
|
Deceptive advertising or a misrepresentation
|
Upto 3 Lakhs
|
5
|
Food with extraneous matter
|
Upto 3 Lakhs
|
6
|
Failure to follow the directions of the food safety officer
|
Upto 3 Lakhs
|
7
|
Unhygienic processing or manufacture
|
Upto 3 Lakhs
|
Detailed information about the FSSAI Act provides insights into the legal requirements for both small and large businesses.
Consequences of operating without FSSAI registration
Operating without FSSAI registration can lead to:
Conclusion
For food business operators, obtaining an FSSAI registration or license is not just a regulatory requirement; it is a strategic business move. Beyond ensuring compliance and building consumer trust, it positions businesses more favourably when seeking business loans for expansion. With financial institutions often considering regulatory compliance as a marker of a business's reliability, an FSSAI license can significantly enhance a food business's eligibility for substantial financial support. Thus, navigating the FSSAI licensing process becomes a crucial step toward growth and success in the food industry.
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