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The Kind Of Food Businesses That Require FSSAI License

The Kind Of Food Businesses That Require FSSAI License

Food License Or FSSAI Was Established To Achieve Three Objectives:

  1. Framing an integrated Food Law
  2. Prioritizing Consumer Safety
  3. Harmonizing food standards with international regulations.

Every Food Business Operator (FBO) in India needs to be licensed or registered under the Food Safety Standards Act 2006. Under FSSAR, licensing is a two-tier system involving central and State Licensing. In this blog, we will be looking into the kind of business that requires FSSAI License.

Kind Of Food Businesses That Comes Under Central Licensing:

  1. Dairy units including milk chilling units equipped to handle or process more than 50 thousand liters of liquid milk/day or 2500 MT of milk solid per annum.
  2. Vegetable oil processing units and units producing vegetable oil by the process of solvent extraction and refineries including oil expeller unit having installed capacity more than 2 MT per day.
  3. All slaughterhouses equipped to slaughter more than 50 large animals or 150 or more small animals including sheep and goats or 1000 or more poultry birds per day.
  4. Meat processing units equipped to handle or process more than 500 kg of meat per day or 150 MT per annum.
  5. All food processing units other than mentioned under point.1 to point.4 including relabellers and repackers having installed capacity more than 2 MT/day except grains, cereals, and pulses milling units.
  6. 100 % Export Oriented Units
  7. All Importers importing food items for commercial use.
  8. Retail chains operating in three or more states.
  9. Food catering services in establishments and units under Central government Agencies like Railways, Air and airport, Seaport, Defence etc.

Kind Of Food Businesses That Comes Under State Licensing:

License for commencing or carrying on the food business, which is not covered under central licensing shall be granted by the concerned State Licensing Authority.

  1. Dhabha.
  2. Restaurants
  3. Storage
  4. Wholesaler
  5. Retailer
  6. Distributor
  7. Supplier
  8. Canteen
  9. Club
  10. Transporter
  11. Hawker
  12. Marketer
  13. Food Processor

Benefits of FSSAI license

FSSAI license certifies that food is tested and the hygiene, sanitary and safety requirements as set by government of India have been followed by the business entity.

Punishment for carrying on business without FSSAI license

The Food Safety and Standards Act, 2006 strictly prohibits any person or food business operator to engage into manufacturing, selling, distribution or imports of any food product without FSSAI license, punishment with imprisonment for 6 months and also with a fine upto Rs. 5,00,000.

Who does not require FSSAI?

Any small food business operator who manufactures or sells any food item himself or a petty retailer, hawker, itinerant vendor or temporary stall holder or distributes foods including in any religious or social gathering except a caterer are exempted from FSSAI license, but it is mandatory for them to register with Food Authority. The annual turnover of these Food Business Operator is less than Rs. 12 lakhs. Once these Petty food business operators register with Food Authority, Certificate of Registration and a photo identity card.

Categories of FSSAI license: 2 types, Central and State, depending upon the turnover /output or storage capacity of Food business operator. 

1. State Fsssai license is mandatory for food Business operator(FBO) if:

  • Its Annual turnover of FBO is above 12 lakhs, or
  • It is 3 star hotels and above, or
  • If Transporter having 100 vehicles or turn over up to 30 crore

2. Central FSSAI license is mandatory for food Business operator (FBO) if:

  • Its annual turnover is above Rs. 20 crores, or
  • Its business operations in more than one state, or
  • Any FBO is engaged in import or export of food products, or
  • It is Five-star Hotels and above

Note: Eligibility for state and Central FSSAI license varies from business to business.

Documents Required for FSSAI State and Central License:

  1. Blueprint or layout plan of the processing unit
  2. List of Directors or partners with full address and contact details
  3. Photo ID and address proof issued by Government authority of Proprietor or Partner or Director(s)
  4. Name and List of Equipment and Machinery along with their number, installed capacity
  5. List of food category desired to be manufactured. (In case of manufacturers).
  6. Authority letter with name and address of responsible person nominated by the manufacturer along with alternative responsible person indicating the powers vested with them viz assisting the officers in inspections, a collection of samples, packing & dispatch. (Mandatory for manufacturing and processors).
  7. Analysis report (Chemical & Bacteriological) of water to be used as an ingredient in food from a recognized or public health laboratory to confirm the portability (mandatory only for manufacturing and processing units only).
  8. A Copy of sale deed or Rent agreement or electricity bill
  9. A copy of Partnership Deed or Affidavit or AOA & MOA towards the constitution of the firm.
  10. A copy of certificate obtained under Co-Op Act 1861/Multi State Co-Op Act 2002 for Co-Operatives. (if applicable).
  1. Food Safety Management System plan or certificate (if any).
  2. Source of raw material for meat and meat processing plants. (if applicable).
  3. Pesticide residues report of water (for packaged drinking water business),
  4. NOCs from Municipality or local body. (optional)
  5. Supporting document proof for turnover
  6. Import Export?Code document issued by DGFT(dealing with import and export of food products)

Start-up process entails complex procedures and many bureaucratic hurdles, entrepreneurs are better off using professional services. Hiring a virtual lawyer and virtual accountant can save time and help ensure that the process goes smoothly. For any Legal and Accounting support, Happy to help you, let us talk  🙂

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