FSSAI License: Complete Guide for Food Businesses in India

FSSAI License is mandatory for any food business in India, as it ensures that the business complies with the food safety and standard guidelines issued by the Food Safety and Standards Authority of India (FSSAI).
Depending on your turnover, nature of business, and scale of operation, you will need to apply for different types of FSSAI License.
This article will help you understand who needs an FSSAI Licence, what are the different types of FSSAI Licence, how to apply for FSSAI Licence, what documents are required for FSSAI Licence, what are the fees for FSSAI Licence, and what are the compliances and common mistakes to avoid while applying for FSSAI Licence.

Introduction

A café owner in Delhi approached our FSSAI certification consultants after getting a notice from the local food safety department. His multi-cuisine restaurant had gone viral within a year, their online orders were increasing exponentially every month, and they were already constructing their second outlet. Everything was going well except that they were operating under a wrong category of the food licence. Luckily, the case was resolved before any of their outlet faced any issues.

This was a classic example of why many budding food business owners face challenges while getting their FSSAI registration done. There is a general misconception that any type of food license is sufficient for all kinds of businesses while in reality, it depends on the turnover, activity, and scale of the operation.

Whether you are manufacturing packaged food items, running a cloud kitchen, importing food items, managing a private restaurant, or selling homemade food items online, it is essential to get the right sort of FSSAI certification because it demonstrates your commitment to quality and safety. This, in turn, boosts your reputation and credibility as a food business operator. So, it is time to take things seriously and make the most of your business with Diligence Certification. We help start-ups, manufacturers, importers, restaurants, retail chains, and food processing units get the required FSSAI licence with minimal delays.

What is an FSSAI License?

Every Food Business Operator (FBO) must apply for an FSSAI License that allows them to manufacture, process, package, store, distribute, transport, import, or sell their food products under the supervision of the Food Safety and Standard Authority of India (FSSAI).

FBOs must mention the unique 14-digit number present on the FSSAI certificate on all their packaging material, if applicable. This unique number assures the consumer that the manufacturer has met the highest standards of quality and safety as defined by FSSAI.

Who Needs an FSSAI License?

Anybody involved in the food business, including manufacturers, processors, distributors, transporters, cold storage, importers, and exporters must apply for FSSAI registration or license. You must understand that FSSAI Licence is mandatory for any entity engaged in food production, processing, or distribution. It helps establish your credibility with government authorities, customers, partners, and investors.

Why do you need an FSSAI License?

Contaminated food products can lead to enormous losses for the business. Any negligence on the part of the manufacturer can lead to consumer illness, financial loss to the consumer, complaint, and a lawsuit against the manufacturer. An FSSAI Licence will help your business-

• Operate legal food businesses across the country

• Boost your sales and brand credibility

• Get recognized on food delivery aggregators

• Facilitate easy scaling of your business

• Help expand your exports and meet international standards, if applicable

• Assist in meeting the compliance requirements of other stakeholders

• Avoid penalties and disruptions to your supply chain

Therefore, it becomes essential to get the correct type of FSSAI License at the earliest to avoid such challenges in the future.

Who Needs an FSSAI License?

One of the most frequently asked questions by business owners pertains to the relevance of FSSAI licence for their particular activity. For the majority of businesses, obtaining FSSAI registration or FSSAI license is mandatory.

Some of these are:

Food Manufacturers

Any business engaged in manufacturing food products, including bakery goods, beverages, dairy, snacks, spices, oil, or other processed products needs FSSAI approvals.

Restaurants and Café

This includes both single and multi-outlet restaurant chains catering to meals and snacks.

Cloud Kitchen

Agencies that operate exclusively online with no physical outlets but deliver meals via third-party apps need to get FSSAI approvals.

Hotels

Hotels are required to get FSSAI approvals if they have restaurants, banquet halls, or other food service entities.

Importers

Food importing firms are required to acquire a central licence from FSSAI if they bring in any packaged food, beverage, or other eatables from foreign countries.

Exporters

Export-oriented food manufacturing entities need FSSAI approvals, which are mandatory along with other clearances for exports.

Retailers and Supermarket

Any retail entity dealing in grocery, convenience stores, or others that sell packaged food items are covered under FSSAI and need appropriate registration.

Food Transporters

Any entity that transports food items via commercial carriers falls under FSSAI guidelines.

Warehouses and Cold Storage

Food storage facilities and cold storage units need FSSAI clearances for their operations.

10) Online Sellers

Entities that sell their products online, either from their site or through other aggregators such as Amazon or Flipkart, are required to get FSSAI approvals.

Type of Food Licence under FSSAI

A crucial decision while applying for a food licence pertains to choosing the correct licence that suits the business activity. An incorrect application may lead to rejection or delays in processing.

The FSSAI broadly classifies the type of licence into three categories:

Basic FSSAI Registration

This is ideal for small-scale food businesses, petty retailers, street vendors, home-based food businesses, and small bakery units. It is suited for businesses that have a turnover as per the limits stipulated by FSSAI.

State FSSAI Licence

This licence is ideal for medium-scale businesses operating within a state.Such businesses may include:

Restaurants
Medium-scale manufacturers
Processors
Storage entities
Distributors
Transporters
Retail chains
Large-scale businesses with turnovers as per the limits stipulated by FSSAI.

Central FSSAI Licence

This applies to all businesses that either have an extremely large turnover, involve food import/export, operate in special categories such as catering to airports or seaports, government undertakings, or have extensive operations across the country or for e-commerce players dealing in food.

How to decide which FSSAI License to apply for?

Apart from the turnover, FSSAI also considers other factors such as nature of business activity, manufacturing capacity, presence of import/export activity, number of outlets, storage capacity, and state-wise presence, apart from others. It is common for businesses to apply under

incorrect categories by only considering the turnover, resulting in further clarifications or resubmission of applications while processing.It is better to consult experts before initiating the licence application.

Why do companies prefer professional assistance?

The online application process offered through the FoSCoS portal has eased the procedure for FSSAI food licence application. At the same time, there are certain aspects where businesses make mistakes, leading to objections and prolonged processing times.

These include:

Incorrect category choice
Wrong turnover selection
Missing documents
Incorrect layout plan
Incorrect product description
Address proof discrepancy
Declaration form in an incorrect format

At Diligence Certification, we ensure that these issues are avoided while processing your application, helping you get FSSAI approvals faster.

Documents Required for FSSAI Licence

One of the most common reasons for rejection or delay in FSSAI approvals pertains to incomplete documentation. While the exact documents vary according to the type of licence and business activity, it is better to prepare all necessary papers before initiating the application.

Common Documents:

All food businesses will have to submit the following documents:

PAN Card of the proprietor/company
Aadhar card or address proof of the applicant
Passport size photograph
Address proof of the business
Rent agreement or ownership document
Electricity or water bill
Constitution certificate (LLP agreement, Partnership deed, MOA and AOA, etc.)
GST certificate (if any)
Food product list
Nature of business
Contact information
Email and phone number
Additional Documents by Manufacturers:
All manufacturing units will have to submit additional documents such as:
Layout plan of the unit
List of machinery
Production capacity
Water test report (approved lab)
FSMS plan
Raw material sources
Description of category of food
Additional Documents by Importers:
Importers will also have to provide additional documents such as:
IEC (Import Export Code)
Information about the product being imported
Warehouse details
Import approvals, if any

Procedure for FSSAI Licence Application

Many believe that all that needs to be done to apply for an FSSAI licence is filling the form online. However, there is a series of steps that need to be taken to ensure that there are no objections to the application.

Step 1: Decide the type of licence required

A preliminary step while applying for an FSSAI licence pertains to deciding which type of licence is relevant for your business activity. The applicant needs to decide if the business falls under basic registration, state-level licence, or central licence.Factors influencing this decision include turnover, nature of business, manufacturing capacity, and other aspects.

Step 2: Prepare all documents prior to application

It is crucial to prepare all documents as per your eligibility before initiating the application. Lack of requisite documents is a common reason for the application being pending for long durations without processing.

Step 3: Apply online

The online application needs to be made through the FoSCoS portal along with documents and the relevant government fees for the chosen category of licence.Before final submission, it is vital to double-check all information since any corrections after submission can prolong the processing duration.

Step 4: Department scrutiny

The relevant department scrutinizes all applications. Based on the activity, they may request additional documents or information, especially for manufacturing units or those businesses falling under special categories. Additionally, the authorities may also visit the premises to inspect if everything is as per norms.

Step 5: Issuance of FSSAI Licence

Once the application is approved, the FSSAI licence is issued, which has a 14-digit number. The FSSAI logo along with the number needs to be displayed prominently in the business premises and on all relevant packaging, wherever applicable.

How Much Does an FSSAI License Cost?

The government does not specify a certain fee that all businesses must pay. The fee largely depends on the following factors:

Licence category
Nature of business activity
Production capacity
Number of years selected
Type of food business

Apart from the government fee, businesses must also consider professional consultancy charges if they hire authorised consultants for document preparation and application support. Instead of focusing on the filing fee, it is better to ensure that the application is submitted correctly the first time. Resubmitting the application and correcting documents may be more expensive than hiring professionals.

Processing Time for FSSAI License

The processing time depends on the type of licence and whether additional verification is required. Some of the factors that affect the timeline are as follows:

Completeness of documents
Correctness of licence category
Department’s workload
Inspection requirements
Time taken to respond to clarifications

It is always better to submit complete documents and choose the correct licence category. This way, applications can be processed faster as there will be no need for resubmission.

Validity and Renewal of FSSAI License

The validity of an FSSAI License depends on the option selected by the business owner. Usually, the validity period can range from 1 to 5 years. It is essential to renew the licence well before the expiry date to avoid disruptions in business. The renewal process typically involves updating the details, verifying documents, paying the renewal fee, and submitting the application before the due date. It is better to renew the licence well before the expiry date to prevent delays. Businesses can keep track of the expiry date internally and renew the licence several months in advance.

Common Mistakes That Delay FSSAI Approval

Based on our experience in helping businesses from various food sectors, we have noticed that most applications are rejected due to simple errors rather than complicated legal issues. Some of the most common mistakes that delay FSSAI approval are as follows:

Wrong Licence Category
Many businesses select the wrong licence category based on turnover while ignoring other factors such as production capacity.
Incomplete Documentation
Most applications are rejected due to incomplete documentation, lack of address proof, unsigned documents, and incorrect identity proof.
Wrong Product Description
Some businesses fail to provide accurate product descriptions, leading to delays in approval.
Inconsistency in Business Details
Many applications are rejected due to discrepancies in business details like name, address, and other information.
Delayed Response to Queries
If the concerned authority sends queries regarding an application, it is better to reply to them as soon as possible.

Benefits of Having an FSSAI License

Many businesses apply for an FSSAI License because it is mandatory. However, there are various benefits of having an FSSAI Licence for a business, including the following:

1. Customer Trust and Confidence

The FSSAI Licence Number on food packaging assures customers about the quality and safety of the product. Moreover, in this day and age, customers are more conscious about the food that they eat. Hence, having an FSSAI Licence builds credibility with customers.

2. Legal Compliance

The Food Safety and Standards Act, 2006 makes it mandatory for all Food Business Operators (FBOs) to acquire the necessary registration or licence. By fulfilling this requirement, businesses can avoid legal issues with authorities.

3. Business Expansion Opportunities

Having an FSSAI Licence also helps in business expansion. Many super markets, restaurant chains, online aggregators, and other large players require businesses to have an FSSAI Licence before they allow their products to be sold on their platforms.

4. Brand Image

An FSSAI Licence shows that a business follows the required food safety practices and adheres to legal compliance. This helps to build the brand image of a business, which is essential for long-term growth and success. Whether it is a restaurant, cloud kitchen, food manufacturing unit, or any other type of business, food safety compliance is vital to establish credibility with customers.

5. Easy Business Relationships

Many big businesses, including wholesale suppliers, exporters, and organised retail chains, prefer to deal with businesses that have an FSSAI Licence. This is because the licence assures them of the quality and safety of the products. In other words, an FSSAI Licence facilitates business relationships with other players in the industry.

6. Easy Online Sales

Many online marketplaces and food delivery aggregators require businesses to provide food business registration details before they can list their products on their websites. Hence, an FSSAI Licence enables a business to sell its products online easily.

Penalties for Operating Without an FSSAI License

Operating a food business without an FSSAI Licence is a punishable offence under the Food Safety and Standards Act, 2006. The penalties for not having an FSSAI Licence depend on the type of violation. Depending on the seriousness of the violation, the authorities can impose the following penalties:

Improvement notice
Financial penalty
Suspension or cancellation of licence
Confiscation of goods
Prosecution

Having an FSSAI Licence is essential to avoid these penalties. In addition to protecting a business from these penalties, an FSSAI Licence also safeguards the reputation of a business and ensures customer satisfaction.

Why Choose Diligence Certification?

Applying for an FSSAI Licence seems simple, but businesses often make mistakes while selecting the licence category, filling the application form, and providing documents, which leads to delays in the approval process. At Diligence Certification, we help businesses to apply for an FSSAI Licence without any hassles. We have a team of experts who understand the requirements of different business sizes, ranging from home-based food businesses to manufacturers, importers, exporters, restaurants, cloud kitchens, and retail chains.

Our team provides the following services:

Eligibility assistance
Choosing the appropriate licence category
Document verification
Online application filing
Communication with the concerned authorities
Renewal assistance
Modification services
Compliance support after licence approval

Our goal is to ensure that businesses can complete the FSSAI Licence application process smoothly and without any errors.

Conclusion

All food businesses, regardless of their size, must provide safe and hygienic products to customers. Getting an FSSAI Licence is vital to ensure legal compliance while also meeting the expectations of customers. Whether a business is a small-scale manufacturer, a restaurant, a cloud kitchen, or involved in food retail, it must understand the importance of an FSSAI Licence.

If you are looking for assistance with an FSSAI Licence, Diligence Certification can help you to get the required licence smoothly without any delays. We can assist with licence registration, renewal, modification, and compliance support after approval.