corporate law

Understanding FSSAI License Requirements for Food Businesses in India

Overview of FSSAI License and Registration Requirements

All food business operators (FBOs) involved in the manufacturing, processing, storage, distribution, and transportation of food products must obtain FSSAI registration or a license. This requirement helps ensure the quality of food products in the market.

FSSAI licenses and registrations are issued through a three-tier system:

  1. Food Registration Certificate
  2. State License
  3. Central License

Food Registration Certificate

This certificate is applicable to petty FBOs who manufacture or sell food products. This includes retail vendors like hawkers, itinerant vendors, temporary stall holders, and operators from small-scale or cottage industries, with an annual turnover up to Rs. 12 lakhs.

State License

Any food business with an annual turnover exceeding Rs. 12 lakhs and up to Rs. 20 crores must apply for a State License.

Central License

Food businesses with an annual turnover exceeding Rs. 20 crores, those operating in multiple states, or engaged in import/export activities, including e-commerce businesses, are required to obtain a Central License.

FAQs

Can I apply for a new license after my previous one was canceled?

Yes, you may submit a fresh application for registration or a license after a period of three months from the cancellation date, provided all recommendations in the improvement notice have been complied with, as per Regulation 2.1.8 (3).

How do I transfer my license in the event of the owner's death?

A license can be transferred upon the death of the owner. An online application for transfer is necessary along with the Death Certificate and proof of legal heirship.

How can I renew my license after it has expired?

FBOs can renew their FSSAI License/Registration after the expiry date by paying penalties:

  • From the 1st to the 90th day post-expiry: Three times the annual fee.
  • From the 91st to the 180th day post-expiry: Five times the annual fee in total.

Do pharmacies need an FSSAI license for selling health supplements or nutraceutical products?

Yes, all FBOs, including pharmacies, must apply for FSSAI registration or a license if they sell health supplements or nutraceuticals.

What licensing is required for operating a food business across multiple states using the same business name?

FBOs with premises in multiple states must secure a Central License for their registered or head office, along with individual licenses or registrations for each unit, depending on the capacity or turnover of that unit.

What type of FSSAI License is needed for food businesses operating at airports?

Food operations at airports require a Central License, with an annual fee of Rs. 7,500.

If I have manufacturing units in different states, do I need a common license?

A Central License is necessary for your company's Head Office or Registered Office, along with individual licenses for each manufacturing unit based on eligibility in their respective states or Union Territories.

Is it mandatory to file annual returns for food business activities?

Yes, FSSAI Licensed FBOs engaged in manufacturing (including repacking) and importing food must file Annual Returns in Form D1 by May 31 of the preceding financial year.

What is the penalty for late submission of Annual Returns?

Failure to submit the annual return by May 31 incurs a late fee of Rs. 100 per day until the return is submitted.

What is the time frame for the issuance of a Registration Certificate after application?

Registration certificates must be issued within seven days of application submission.

How long does it take to receive an FSSAI License after applying?

Licenses should be issued within 60 days of a complete application, including time for application review and on-site inspections.

Why is a late fee applied to renewal applications even with some validity left on my license?

To avoid a late fee, license renewals must be submitted at least 30 days before the expiration date. Renewals filed on the last day of validity attract a late fee of Rs. 100 per day.

Is it permissible to hold both a State License and a Central License for the same business premises?

No, FSSAI regulations dictate that only one license is allowed per premises. You must link all business types to a single license and, if necessary, surrender one of the licenses to modify the remaining one accordingly.

How can I update the production capacity if it increases?

Notify the relevant Licensing Authorities through a License modification application. If the change necessitates switching from a State to a Central License, apply for the Central License and surrender the State License.

Do temples need FSSAI registration for providing prashad or organizing langars?

Yes, temples must obtain an FSSAI License or Registration according to the eligibility criteria.

Are NGOs distributing surplus food required to obtain an FSSAI License?

Yes, these NGOs must acquire an FSSAI License or Registration following the eligibility criteria.

Do I need to submit annual returns if I only have an FSSAI Registration Certificate for manufacturing food items?

No, petty FBOs with an FSSAI Registration Certificate are not required to submit annual returns. Only licensed FBOs involved in manufacturing and importing need to file returns.

Is it mandatory to include the FSSAI license/registration number on invoices and receipts?

Yes, all food businesses must display the 14-digit FSSAI License or Registration number on cash receipts, invoices, and bills. It must be included on all transaction documents issued.

How should I categorize my business if using third-party manufacturers?

FBOs that have products manufactured by third parties must apply for a license under the Relabeller Category.