Legal Guide

What is the Procedure to Start Food Business in India

by Bhavya Choudhary · 4 min read

What is the Procedure to Start Food Business in India

What is FSSAI?

According to the FSSAI official website, any person who wishes to start a food business in India of manufacturing, processing, storing, distributing, and selling food must be applied for and have an FSSAI Registration. The scope of FSSAI is much beyond granting certificates to restaurants to start a food business in India. Apart from giving a legal certificate, FSSAI also is a benchmark for the quality of food.

License Type

The License that is granted by FSSAI are of two types:

State license

A state license is granted by FSSAI to start a food business in India when it has a turnover between 12 lakh and 20 crores. But there is an exception that all-grain, cereal, and pulses milling units must have state licenses irrespective of turnover.

Central License

Central License is granted by FSSAI when food Businesses with an Annual Turnover of more than 20 crores. When a person has started a food business in India in more than two states, it must be registered at the central level.

Registration

FSSAI online registration is required for all who want to start a food business in India. A petty food business operator is any person or entity who produces or sells any article of food either himself or a petty retailer, hawker, itinerant vendor or temporary stall holder; or distributes foods including in any religious or social gathering or who wants to start a food business in India except a caterer; or other food businesses in India including small scale or cottage or such other industries relating to food business or tiny food businesses with an annual turnover not exceeding Rs 12 lakhs and whose production capacity of food (other than milk and milk products and meat products) does not exceed 100 kg/liter per day.

To start a food business in India, it is required to obtain an FSSAI registration by submitting an application form. After presenting the FSSAI registration application, the registration should be done or be rejected in writing within seven days, in writing, of receipt of an application by authority. If it is done, then the certificate is granted, which contains the details and the photo of the applicant. The certificate awarded must be displayed at the place of a person who wishes to start a food business in India.

Who can apply for a license?

The persons who are involved in the food business in India of dairy units which include milk chilling units equipped to handle and process, vegetable oil processing units, slaughtering units, meat processing units, food processing units that include relabellers and repackers, Proprietary foods, 100% export oriented units are entitled to FSSAI Central and State License as required to start a food business in India.

License Procedure

Any business that wishes to start a food business in India which does not qualify as a petty food business requires a license. License is of two types:

  1. Central License
  2. State license

For getting Central License or State License, it has to be seen whether the person to start a food business in India is eligible to get the License. If the person is qualified, they will be directed to the Central Licensing page, where you have to fill out the application shown according to Food Safety and Standards Act, 2006. The data which is provided to the department must be correct and appropriate. The person should write the generic names of the product and not the brand name.

Why is a License required?

A license is required to start a food business in India to ensure the safety and quality of food products supplied or manufactured by various establishments in India.

Offline Registration

FSSAI also provides offline registration for those who wish to start a food business in India and are not comfortable with FASSI online registration. Within 15 days of submission of the application, take a printout of the application and attach the demand draft of the amount and submit it to the state authority.

Fees Involved in making each application

A license is issued for a maximum period of five years. The people who wish to start a food business in India must get a License.

License Validity

A license is issued for a maximum period of five years and a minimum of one year.

Benefits of acquiring FSSAI Registration/ License

  1. It creates consumer awareness. In this age, the consumers have become more alert and informative about the quality of the products.
  2. There are specific standards that have to be met to get the License which is beneficial for ordinary people. This is a legal requirement that must be fulfilled, or it attracts a penalty.
  3. The FSSAI logo gives an edge over other food products which do not have the logo.
  4. Business expansion can be done quickly if the business has the FSSAI License after FSSAI online registration.

Conclusion

Article 47 of our constitution provides for the duty of the State to raise the level of nutrition and the standard of living and improve public health. FSSAI is a great initiative to fulfill this duty. Food is a basic necessity required by all, be it poor or rich. Providing the best quality of food is what Government should be concerned about, and therefore, the License is essential to fulfilling this urgent need. The people who wish to start a food business in India must get the License as soon as possible.

Starting your dream food business requires compliance approvals and multiple licenses, including the mandatory FSSAI license. Talk to a Lawyer to understand the FSSAI requirements and the Registration process.

Bhavya Choudhary

Written by

Bhavya Choudhary

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