Tea Business License Registration in India (2026 Update)

Tea Business License Registration in India (2026 Update)

India is one of the largest producers and consumers of tea in the world. From traditional Assam blends to premium organic green teas, the Indian tea industry continues to grow rapidly in 2026, especially with the rise of e-commerce and specialty tea brands. However, starting a tea business in India requires proper legal registrations and compliance with food safety and commercial regulations. This guide explains everything you need to know about tea business license registration in India in 2026.

Understanding the Tea Business in India

A tea business may include tea manufacturing, wholesale trading, retail sales, online selling, exporting, packaging, or private labeling. Since tea is a consumable food product, it falls under food safety regulations. Whether you plan to open a tea café, sell packaged tea online, or export premium loose-leaf tea, obtaining the required licenses is mandatory.

Non-compliance can lead to heavy penalties, cancellation of business operations, and legal action. Therefore, understanding the registration framework is the first step toward building a successful tea venture.

Choosing the Right Business Structure

Before applying for licenses, you must decide your business structure. The most common options include:

• Sole Proprietorship
• Partnership Firm
• Limited Liability Partnership (LLP)
• Private Limited Company
• One Person Company (OPC)

If you plan to scale nationally or attract investors, a private limited company is usually preferred. Company incorporation is handled through the Ministry of Corporate Affairs (MCA) portal. Your chosen structure will determine compliance requirements, tax treatment, and documentation.

Read More: Tea Board Registration in India

Mandatory Licenses for a Tea Business

1. FSSAI License (Most Important)

Since tea is classified as a food product, obtaining a license from the Food Safety and Standards Authority of India (FSSAI) is compulsory.

There are three types of FSSAI registrations:

• Basic Registration – For small businesses with turnover up to ₹12 lakhs
• State License—For businesses with turnover between ₹12 lakhs and ₹20 crores
• Central License—For large manufacturers, exporters, or businesses operating in multiple states

Even home-based tea sellers and online tea brands must obtain FSSAI registration. Without it, you cannot legally sell packaged tea in India.

2. GST Registration

Goods and Services Tax (GST) registration is mandatory if your annual turnover exceeds the prescribed threshold (generally ₹40 lakhs for goods in most states). However, if you sell tea online via platforms like Amazon or Flipkart, GST registration is required irrespective of turnover.

Tea products attract different GST rates depending on processing and packaging. Proper invoicing and filing of GST returns are essential for compliance.

3. Udyam (MSME) Registration

Though not mandatory, MSME registration (Udyam Registration) is highly recommended. It offers benefits such as the following:

• Easier access to bank loans
• Subsidies on trademark and patent registration
• Government scheme eligibility
• Lower interest rates

Small tea retailers and startups can significantly benefit from MSME status.

4. Shop and Establishment License

If you operate from a physical shop, warehouse, or office, you must obtain a shop and establishment license from the local municipal authority. This registration governs working hours, employee conditions, and business operations within a specific state.

Tea-Specific Regulatory Approvals

If you are involved in large-scale trading or exports, additional approvals may be required.

Tea Board Registration

Businesses engaged in tea export or large-scale trading may need registration with the Tea Board of India. The Tea Board regulates tea production, quality standards, and export norms.

Registration ensures adherence to quality benchmarks and allows participation in government export schemes.

Import Export Code (IEC)

If you plan to export tea internationally, you must obtain an import-export code from the Directorate General of Foreign Trade (DGFT). Without IEC, you cannot legally conduct cross-border trade.

Step-by-Step Registration Process (2026)

Here is a simplified roadmap for setting up your tea business legally:

• Choose Business Structure—Register your proprietorship, LLP, or company.
• Apply for PAN and Bank Account—Required for taxation and transactions.
• Register under FSSAI—based on turnover and scale.
• Obtain GST Registration—if applicable or selling online.
• Apply for MSME (Udyam) Registration—optional but beneficial.
• Get a shop & establishment license—for physical operations.
• Apply for IEC—if exporting tea.

Compliance Requirements

After registration, maintaining compliance is equally important.

• FSSAI Renewal—Must be renewed before expiry (1–5 years validity).
• GST Return Filing – Monthly or quarterly returns depending on turnover.
• Annual ROC Filings – For companies and LLPs.
• Record Maintenance—Sales invoices, stock records, and tax documents.

Food labeling must comply with FSSAI packaging norms, including:

• Ingredient list
• Net weight
• Manufacturer details
• FSSAI license number
• Nutritional information (if applicable)

Improper labeling can attract penalties or product recalls.

Read More: Tea Board Kolkata Registration Process, Documents, and Fees

Estimated Costs in 2026

The cost of starting a tea business legally depends on scale:

• FSSAI Registration: ₹100 to ₹7,500 (government fees)
• GST Registration: Free (professional fees extra)
• Company Registration: ₹6,000–₹15,000 approx.
• IEC: Nominal government fee
• Professional Assistance: Variable

Common Mistakes to Avoid

• Starting operations without FSSAI approval
• Ignoring GST compliance when selling online
• Incorrect food labeling
• Delaying renewals
• Choosing the wrong business structure

Benefits of Proper Licensing

Registering your tea business properly offers long-term advantages:

• Legal protection
• Consumer trust and brand credibility
• Access to bank funding
• Eligibility for government schemes
• Expansion into national and international markets

Conclusion

India’s tea industry continues to present lucrative opportunities for entrepreneurs. However, success depends on starting your venture on a strong legal foundation. From FSSAI registration to GST compliance and Tea Board approvals, each step ensures your business operates smoothly and legally.

If you plan carefully, choose the right structure, and complete the necessary registrations, your tea business can scale confidently in India’s growing and competitive marketplace.