FSSAI License

Overview for FSSAI License

Do you often eat at restaurants and eateries or do you love to visit your favourite snack center or café at weekends?  Have you ever worried about the quality of the raw materials, the cooking process, and the hygiene & safety standards followed in order to ensure your health and safety?  Despite this, there may be instances where food business entities may indulge in dishonest practices of improper hygiene for food preparation or mixing lethal substances to quick their profits while risking lives at the same time, which required the introduction of proper guidelines specifying standards to maintain hygiene and methods of food preparation while affording quality & safety of food articles. With this objective in mind, the Union Government introduced the Food Safety and Standards Act of 2006.

Introduction of FSSAI

Established by the Government of India under the Food Safety and Standards (FSS) Act 2006 and corresponding rules 2008, the Food Safety and Standards Authority of India (FSSAI) is a national regulatory authority entrusted with the functions of considering & approving the licensing of food business operating businesses and further monitoring compliances as per the laid down guidelines to afford quality & safe food articles for their consumption.

The objective of the FSSAI license is to clearly state the responsible person and specify their responsibility for upholding food product quality through licensing, inspection, and monitoring. Accordingly, every food business operator involved in the business of offering food articles or manufacturing food products for human consumption, either within one state or multiple states, is under the legal obligation to apply for and acquire FSSAI  registration.

Who can apply for Food License?

Regardless of the size or scale of the business, any individual or Food Business Operator (FBO) involved in or planning to establish a food-related venture must secure FSSAI registration depending upon several factors, such as the business location across states, its size, and its annual turnover.

Businesses, including those engaged in small to medium-scale manufacturing, storage, transportation, retail, restaurants, marketing, distribution, etc. with annual turnover above Rs. 12 lakh, shall make an application for the FSSAI State License. Whereas, businesses holding an annual turnover above Rs. 20 crore shall compulsorily obtain a Central FSSAI license for manufacturing, trading, and storage purposes.

Benefits of FSSAI Registration

1. Ensuring Consumer Confidence in Quality: Establishing trust and nurturing a positive connection with customers holds immense significance for any food enterprise. Even a minor flaw or shortcoming could result in shifting profits to losses. Hence, holding an FSSAI certificate can assure adherence to safety norms and food quality standards.
   
   This, in turn, has the potential to cultivate a lasting and contented rapport between the food business operator (FBO) and consumers about the food products crafted, manufactured, distributed, or presented for sale.

2. Drawing in Investors and Sponsors for the Business: It is evident that enterprises engaged in the production, sale, import, or export of food items, or those closely associated with such activities, inherently gain credibility due to their commitment to quality products, positive reputation, substantial consumer following, and prospects for growth.
   
   Consequently, potential investors are more likely to select these types of enterprises for investment due to their promising viability and profit potential.

3. Enhanced Market Reach: Numerous retailers and food service establishments demand suppliers possess a valid FSSAI license, which allows the business to tap into a broader market.

4. Competitive Benefit: Holding a food license provides enterprises with a competitive advantage, especially within the food sector, in comparison to unregistered rivals.

5. Prospects for Business Growth: Possessing an FSSAI license frequently serves as a prerequisite for business expansion, the establishment of new outlets, or engaging in collaborative ventures.

Types of FSSAI Registration

Prior to commencing the FSSAI registration procedure for your food enterprise, it's essential to understand the kind of registration that suits your needs, contingent upon factors like the scale of your business, yearly earnings, and geographical reach across the country. There are three categories of FSSAI registration:

Basic FSSAI Registration: Typically, this form of registration is intended for smaller food businesses or those with modest turnovers. This includes small-scale food-related ventures with annual earnings up to Rs. 12 lakh meeting one of the following criteria:

• Operating with a production capacity of up to 100 kg/liter per day, or
• Engaging in milk collection or handling up to 500 litres of milk per day, or
• Conducting animal slaughtering with a capacity of 2 large animals, 10 small animals, or 50 poultry birds per day or fewer.

FSSAI State License: Food businesses, operators, startups, or entities not covered by the aforementioned category are required to obtain either a State or a Central License. Furthermore, food enterprises with annual turnovers ranging from Rs. 12 lakh - 20 crore and operating within a single state should seek a State License. This entails submitting Form B along with the required documents in the specified format.
 

FSSAI Central License: Primarily targeted at substantial food operators or enterprises linked to the food sector, catering to the requirements of major entities such as the Indian railways and similar entities. A food business operator (FBO) with business activities spanning two or more states and an annual turnover exceeding Rs. 20 crore is mandated to secure a central license. Moreover, all importers or exporters of food products are obliged to obtain a central license, which necessitates the submission of Form B along with the required documents in the stipulated format.

Documents for Food License

• List of equipment
• Water quality test Reports
• NOC from municipal authorities
• List of food categories and products
• Address proof of the applicant entity
• A completed and signed application form
• List of directors and partners of the business entity
• Copy of the Certificate of Incorporation or Registration
• Plan or certification for a food safety management system
• Information about the authorized representative of the business entity
• Water analysis report for process use and details for source of raw materials
• Inventory of equipment and machinery, including particulars like machine and installed capacity
• Layout of the processing unit, explaining dimensions and allocation of space based on operations
• Proof of the ownership of the premises of the business entity, rent agreement, sale, or lease deed
• Partnership deed, proprietorship affidavit, LLP deed, MOA & AOA as applicable for the applicant entity
• Official certificates issued by governmental bodies, like the Ministry of Commerce's Certificate for 100% EOU, FSSAI-issued NOC/PA document, DGFT-issued IE code document, Ministry of Tourism's Certificate, etc.

Registration Process of FSSAI

• Step 1: Access the FOSCO online platform and commence the registration process to obtain login credentials. Start by filling in basic details such as the name, email address, name & address of the business entity, and contact details of the authorized legal person. The login credentials will be received at the registered email address.
• Step 2: Access the FOSCOS portal and complete the forms and formats, providing the necessary documents and details along with the applicable FSSAI license fee. 
• Step 3: Upon receiving the application, the FSSAI authority will review the documents and inspect the business premises. If the authority is satisfied, it will approve or reject the application, which will be notified to the applicant through communication.

Post Compliances for FSSAI License

1. FSSAI Form D1 (Yearly Report): Every importer, producer, packer, labeller, re-labeler, and re-packer within the food industry is obligated to submit Form D1 to the FSSAI licensing body. This form, D1, can be submitted electronically or in hard copy format, as directed by the food safety commissioner. All food business operators (FBOs) are required to submit Form D1 without exception, regardless of their production involvement, based on the kind of food items they sold during the previous fiscal year.

2. FSSAI Form D2 (Semi-Annual Report): Form D2 constitutes a report to be submitted every six months. Food business operators engaged in the manufacture or import of milk or milk products are obligated to submit Form D2.

Note: Each food business operator (FBO) must submit an individual report for each license granted by FSSAI guidelines, regardless of whether the same FBO operates multiple food license units or businesses. Thus, if an FBO possesses multiple licenses under FSSAI, they are required to file distinct reports for each license. The fact that these FSSAI licenses are held by the same FBO is of no consequence.

Timeline, Validity & Renewal

Following the submission of the FSSAI License application, it typically takes approximately 60 to 90 days for the issuance of the license. Once approved & granted, the license shall be valid for a period of 1–5 years. The FSSAI license renewal application shall be filed at least 30 days before the date of the expiration of the FSSAI license.

Food License Consultant - Agile Regulatory

Obtaining the FSSAI license could be a bit challenging due to the complex process of obtaining the documents required and the processes involved. However, with the right amount of guidance and consultation, you could easily acquire an FSSAI license or food license within the prescribed time. At Agile Regulatory, we are committed to helping budding entrepreneurs by enabling them to acquire business licenses smoothly and carry on their business. 

Frequently Asked Questions(FAQs)