Necessity of FSSAI License for Food Vendors

Muds Management
6 min readJun 30, 2021

The emergence of modern industrialization and related practices also brought a new revolution in the development of food as an industry. New food processing machines have developed and the business of processed foods is at the forefront of change. Our lives have become so fast-paced that every person wants their food to be either ready to eat or processed enough that it can be cooked easily.

All of this has interested many business owners and entrepreneurs towards the food business sector. The major components of it included manufacturing of food products or packaging of food products for exports. However, some businesses started following shady practices in the sector like contaminating food with prohibited ingredients to enhance taste or mixing inedible stuff to just increase the weight of the package.

All these shady practices led the various countries to introduce laws or regulations to ensure the quality of food products. In India, this led to the formation of FSSAI or Food Safety and Standards Authority of India. All the food products manufacturers, food vendors, restaurants, hotels, food transfer businesses, etc. need to have the FSSAI License to signify the safety of their products for consumption. In the following, Section of this written piece, we will explore why it is necessary to get the FSSAI certification in India to start a food business? We will also understand the requirements and other features of the FSSAI registration process.

Why is FSSAI Registration Necessary?

All countries want their people to have food products to meet standard certification of safety regulations. The FSSAI certification gives people assurance that the said products meet the food safety regulations suggested by the Government. These regulations have been designed after consultations with health and nutrition experts.

Even if the vendors are willing to export their products to other countries, they must apply for FSSAI certification. This gives the host country an assurance that the said food products meet all the regulatory requirements and are safe for consumption. The certification also faces the exporter country from the embarrassment of sending unsafe or substandard products. This also affects the relationship among countries as the health of the people consuming the products is at stake.

Understanding FSSAI Food Licensing

FSSAI grants certification to companies in the food business by evaluating their products through standard tests suggested by experts around the world. This form of certification assures that the food is fit for consumption by humans of different age groups. It also ensures that the toxic or unwanted elements are absent from the food or present under a prescribed limit.

If a vendor wants to conduct the business of food manufacturing and distribution, he needs to get the FSSAI registration as per his business size or annual turnover. The license is also deemed as per the area of operation of the company. For export business, the business owners of the food products companies need to acquire the NOC from the government along with the food safety certification. Post the approval of the government and with appropriate license, the company can start their business.

A food product vendor must apply for certification of the products which he wants to sell in the local or foreign market. This product is registered as a separate entity and the concerning certification is valid only for this product and not for other certifications. A business can also apply for an FSSAI’s State or Central License in case it wants to pursue sale of food products outside of its area of business. It must be noted that for the purpose of export, only certified food products are accepted. Moreover, any person looking to start a business of supplying food products must understand the complete workaround to get the FSSAI License. Additionally, they should also understand the labeling requirements for their products as suggested by the authority.

Other Aspects of FSSAI License

Who Requires FSSAI License?

Although we are clear now what kind of businesses require the FSSAI registration for their products, we should also understand what entities should get the registration as per the norms of the Food Safety and Standard Act 2006. As per the act, all the food manufactures, wholesale business operators of the food sector, food storage companies, entities involved in food business through ecommerce, food packaging firms, traders, vendors, hotels, caterers, restaurants, retailers, transporters, and distributors, all need the FSSAI registration.

Different types of FSSAI Certifications

The FSSAI has set the norms of getting food certification for companies based on their annual turnovers. They have basically divided the food certification into three categories. The Companies with a business turnover below 12 lakhs should apply for basic license. Entities with turnover in the range of twelve lakhs to twenty crore rupees should apply for FSSAI State License. The entities or large firms with annual turnover of more than 20 crore rupees can apply for FSSAI Central License.

Small scale businesses and new micro-business owners generally apply for the basic license from FSSAI. Medium-scale businesses or the entities who have grown significantly in the past two to three years and have managed a considerable turnover register for the state license as the chances of their business spreading to other parts of the country are huge. Large companies or the giants of food processing and manufacturing industries any for Central License. These companies often possess the NOC to conduct food export business too.

Benefits of FSSAI Registration

Any food processing, supplying, or manufacturing business with the FSSAI certification gets a number of benefits that includes both business as well as compliance related tasks. The first and foremost benefit of the license is the increased trust enjoyed by these entities among their target customers. The logo of FSSAI Registration creates goodwill for the products among the consumers. The certification also helps the businesses in meeting the compliance and regulatory norms of the business. The increased trust generally leads to increased sales and thus business expansion. Post business expansion, the businesses can apply for a Central license or export NOC.

Specifics of FSSAI License Number

The FSSAI License bears a 14-digit license number that indicates the safety of the product. The licensing and registration procedures of the food companies are regulated through the norms of the Food Safety Act. Post the application to authority with necessary details and the documents, it’s officer verifies all the information. If the application suits the set norms and the food products meet the regulatory standards, then the authority grants the license.

To Conclude…

So, in this writing piece, we studied the importance of a food safety license for the new food business vendors. We also understood the basic features of the FSSAI registration and certification. The FSSAI Licence or certificate is valid for a specific period and post that, the company must apply for renewal of the license.

The FSSAI renewal process must be started 30 days before the expiry date of the existing license. This will ensure that the new license is obtained on or before the last date of expiry of the old license. The companies can also take assistance from a reputed legal and financial advisory firm to get their license. These firms have experts who can handle the whole process on behalf of the company and let them be free to focus on their existing operations.

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Muds Management

We provide legal consultancy services to corporates and other businesses globally.