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What is the cost of a Basic FSSAI License?

Author: Enterslice Group
by Enterslice Group
Posted: Jul 25, 2020

Food businesses are one of the most common types of businesses that are established and operated in India. It is also one of the most successful businesses that manage to earn huge amounts of revenue in several years. A food business must acquire an FSSAI license as it serves as a certificate that guarantees food quality and standards. The FSSAI Registration process involves the submission of various forms, documents, and following several compliances. In this article, we will talk about FSSAI Registration and other important factors with regard to it.

What is the importance of FSSAI License?

Registration for FSSAI is significant for all types of food operators. Thus, it is important to apply for and obtain a license from FSSAI.

  • Depending on the business turnover, the food business operators must apply for any one of the three food license registrations - Basic FSSAI registration, state FSSAI registration, and central FSSAI registration.
  • The license ensures that the food is safe to consume as it is tested, verified, and approved as per guidelines mentioned in the Food Safety and Standards Act, 2006.
  • FSSAI license ensures the complete safety of the food products that are manufactured and distributed to consumers.
  • A license provides reliability and assurance that the food being distributed is safe
  • FSSAI license and the FSSAI logo can be used as a marketing strategy. It can be placed at various places to promote the superior quality of the food products.
  • FSSAI license helps in the growth and expansion of the business as the license establishes the business in a better position.
  • It helps to fund the business by taking loans from banks and other financial institutions.
What is the Food Standards and Safety Authority of India (FSSAI)?

FSSAI is a regulatory authority that governs and supervises food safety. FSSAI specifies science-based standards for articles of food and manages their manufacture, distribution, storage, sale, and import to ensure availability of safe and wholesome food.

What are the types of FSSAI food licenses?

FSSAI Registration is categorized into three types –

  • Basic FSSAI Registration
  • State FSSAI Registration
  • Central FSSAI Registration

Basic FSSAI Registration

Food business operators such as importers, 100% Export Oriented Units, large manufacturers, operators in the Central Government agencies, airports, seaports, etc. are must obtain a Central Food License. The Central Government issues the Central license. Further, FBOs must obtain the Central License for their head office, and if they have operations in more than 1 state. Thus, it is mostly for the units with an annual turnover of more than INR 20 Crores. The maximum duration of this license is 5 years and the minimum is 1 year.

State FSSAI Registration

Food business operators such as small to medium-sized manufacturers, storage units, transporters, retailers, marketers, distributors, etc. are required to obtain State FSSAI License. The State Government issues state License and it is significant for the food businesses to fulfill the requirement of undertaking business operations in only 1 state such as Delhi, in order to obtain the State FSSAI License in Delhi. The units that have an annual turnover of more than 12 lakh must obtain a state license. The maximum duration of this license is 5 years and the minimum is 1 year.

Central FSSAI Registration

Food business operators such as importers, 100% Export Oriented Units, large manufacturers, operators in agencies of Central Government, airports, seaports, etc. are required to acquire a Central Food License. The Central license is issued by the Central Government of India. Further, FBOs must obtain Central License for their head office and if they have business activities in more than one state. Central license is for units that have an annual turnover of more than 20 Crores. The maximum duration of this license is 5 years and the minimum is 1 year.

What are the eligibility requirements to obtain the FSSAI License?

BASIC FSSAI LICENSE

  • Food business operators (FBOs) such as wholesalers, distributors, suppliers, and retailers, food vending establishments, hawkers, club, canteen, Dhaba, restaurants, and storage with an annual turnover of less than INR 12 lakhs.
  • Vendors that sell food items with controlled operations.
  • Petty producers that manufacture food products.
  • A makeshift stall that sells food products.
  • Businesses involved in the sale of food at a social or religious gathering, other than a caterer.
  • Cottage industries related to food products.
  • Production or handling units of vegetable oil by the process of solvent extraction and refineries which includes oil system, the capacity of which must be not more than 100 kg or liters per day.
  • Dairy units that are involved in procurement/collection/handling/chilling of milk, and hold a volume of not more than 500 liters every day or 2.5 Metric Ton of milk solids on an annual basis.
  • A slaughtering capacity of not more than two large animals or 10 small animals or 50 poultry birds per day.

STATE FOOD LICENSE

  • FBOs such as supplier, wholesaler, distributor, retailer, food vending establishments, canteen, and restaurants with an annual turnover of from INR 12 lakh to INR 20 Crores.
  • Proprietary Foods
  • Production and processing units of vegetable oil through solvent extraction and refineries which include oil expeller unit. With a turnover within INR 12 lakhs to INR 20 Crores annually.
  • Hotels that have a rating of 4 stars or less
  • Storages that hold a capacity of less than 50,000 metric tonnes on a yearly basis.
  • Dairy Units which includes milk cooling units, with a daily limit to handle 500 to 50000 liters.
  • A daily slaughtering capacity of more than two and up to fifty large animals. The capacity must range to handle more than 10 and up to 150 small animals or more than 50 to at least 1000 poultry birds.
  • The food processing units must include a daily capacity of not less than 100 kg/liters to up to 2 metric tonnes.

CENTRAL FSSAI LICENSE

  • FBOs such as restaurants, vendors, distributors, and suppliers with an annual turnover of more than INR 20 crores.
  • Manufacturing and processing units of vegetable oil and factories which include oil units, with a capacity of over 2 metric tonnes per day.
  • Dhaba, canteen, and food vending establishments that have branches in more than one state. The annual turnover of these businesses must be more than INR 12 lakhs.
  • Wholesalers that have a yearly turnover of not less than INR 30 crores.
  • Hotels that have a rating of 5 stars or more than that
  • 100 % export oriented units which are engaged in food production or handling.
  • All the importers including individuals that are engaged in the import of food ingredients or condiments.
  • Caterers that are working under Central Government or similar agencies such as Railways, Airlines, and airport, etc.
  • Storages with a capacity of more than 50,000 metric tonnes,
  • Dairy Units which includes chilling units with a capacity to handle or process, over 50,000 liters per day,
  • A slaughtering capacity of over 50 large animals or more than 150 small animals or more than 1000 poultry birds per day,
  • All Food business operators who are involved in the production of food with the help of new processes or technology whose safety has not been established by the FSSAI.
What documents are required for Basic FSSAI Registration?

Following are some documents that must be acquired to obtain Basic FSSAI license –

  • Passport size passport of the applicant
  • Identification proof such as Voter ID, Aadhar card
  • Permanent address
  • Phone Number
  • Copy of property papers
  • Non-Objection Certificate
  • A copy of rent agreement
What documents are required for State FSSAI Registration?

Following are some documents that must be acquired to obtain State FSSAI license –

  • List of Partners, Owners, and Members with their respective addresses and contact details
  • Latest Passport-sized photograph of the applicant
  • Identification proof (Voter ID card or Aadhaar Card)
  • PAN Card
  • Address Proof such as Telephone, Mobile Bill, Electricity or Gas Bill
  • A Copy of Property papers
  • A Copy of Rent Agreement and NOC from the Landlord
  • Partnership Deed/ MOA/AOA of the firm
  • A Copy of certificate obtained
  • NOC from the manufacturer
  • Information on Source of raw material
  • NOC from the Government Municipality
  • E-Code document
  • Form IX by a company
What documents are required for Central FSSAI Registration?

Following are some documents that must be acquired to obtain Central FSSAI license –

  • Declaration Form of FSSAI license
  • A copy of the certificate
  • Completed and signed Form- B
  • A-List that mentions the name of machinery and equipment along with the quantity, capacity, and power applied.
  • IE code document
  • Copy of License from the manufacturer.
  • Proof of ownership of premises, documents such as sale deed, Rental Agreement, or Electricity Bill.
  • A list of Partner, Directors, Members, Proprietor,
  • A list of the food category wanted to be manufactured it’s for manufactures.
What is the registration process to obtain FSSAI License?

Following are steps that must be followed in order to obtain FSSAI food license –

  • Filling FSSAI licensing registration form A on the website and pay the registration fees
  • Once the payment is confirmed, the applicant must fill Form B. Declarations and resolutions must be filed along with the applicant form.
  • It takes approximately 45-60 days to review and verify the application.
  • After the application is approved by the authority, the license will be issued.
What is the cost to obtain FSSSAI License?

Basic FSSAI Registration

The registration fee for basic food license is INR 1799.

State FSSAI Registration

The registration fee for the state food license is INR 15000.

Central FSSAI Registration

Registration fees for central FSSAI food license are INR 7500 which must be renewed on an annual basis the renewal fees of the license is INR 7500.

Conclusion

FSSAI License is absolutely necessary and thus must be obtained by food operators before undertaking any business activities. It is important to follow all guidelines, rules, and regulations with regards to FSSAI and fulfill all requirements stated in the Food Safety and Standards Act.

About the Author

Enterslice is Award Winning Legal Technology & Cpa firm that helps entrepreneurs register and manage their business around the worl.

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Author: Enterslice Group

Enterslice Group

Member since: Jun 07, 2020
Published articles: 5

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