The Food Safety and Standards Authority of India (FSSAI), established under the Food Safety and Standards Act, 2006, mandates that every Food Business Operator (FBO) in India must obtain a valid FSSAI license or registration before commencing any food-related operations. The FSSAI license serves as a certification of quality and compliance with food safety standards, helping ensure that the food supplied to consumers is safe, hygienic, and legally produced.
FSSAI issues three categories of licenses, each tailored to suit the scale, nature, and financial turnover of the food business. While turnover is a primary criterion, the type of business activity also plays a critical role in determining the appropriate license. Here’s a detailed breakdown:
🔹 1. FSSAI Basic Registration
- Eligibility: Suitable for petty or small food businesses
- Annual Turnover: Up to ₹12 lakhs
- Applicability:
- Small retailers and vendors
- Cottage industries involved in food production
- Home-based food businesses (e.g., home bakers or tiffin services)
- Hawkers and street food vendors
- Restrictions:
- Manufacturing units are not allowed to operate under Basic Registration if they exceed the production capacity limits or turnover threshold.
- This license is ideal for entry-level food business operators but not suitable for scaling businesses.
🔹 2. FSSAI State License
- Eligibility: For medium-sized food businesses
- Annual Turnover: More than ₹12 lakhs and up to ₹20 crores
- Applicability:
- Mid-level manufacturers, processors, and packagers of food products
- Medium-sized storage units, wholesalers, and distributors
- Restaurants, catering services, hotels, food chains operating within one state
- Dairy units, meat processing units, and food processing units falling within production capacity limits
- Important Note:
- Manufacturing activities, even at a smaller scale, require a State License if the FBO is involved in production processes that exceed the permitted limits under basic registration.
- State license is issued by the respective State Food Safety Authority and is essential for businesses planning to scale within a particular state.
🔹 3. FSSAI Central License
- Eligibility: Mandatory for large-scale food businesses
- Annual Turnover: Above ₹20 crores
- Applicability:
- Large-scale manufacturers and food processors
- Food business operators engaged in import and export of food products
- E-commerce food businesses and online food aggregators (e.g., Zomato, Swiggy)
- Businesses operating across multiple states
- Units located in SEZs, ports, airports, or under the control of central government agencies
- Mandatory Requirements:
- Any food business engaged in food import or export must obtain a Central License, regardless of turnover.
- Similarly, e-commerce food platforms and companies distributing food online must also operate under a Central License due to their pan-India reach and centralized operations.
📌 Additional Compliance Notes:
- All FBOs must display their FSSAI license number on packaged products and at the premises.
- The license must be renewed periodically to avoid penalties, suspension, or cancellation.
- Operating without a valid FSSAI license can attract severe legal consequences, including monetary fines and imprisonment under the Food Safety Act.
✅ Conclusion:
Choosing the correct FSSAI license type is essential for legal compliance, building consumer trust, and avoiding enforcement actions. Businesses must not only consider their annual turnover but also factor in their business model, scale of operations, and nature of activity such as manufacturing, distribution, import/export, or online sales.