Dreaming about having a food business with all dishes and cuisines that you are eagerly waiting to serve people. A restaurant/food stall where you are the sole owner of the business, where you don’t have to answer any head or boss of yours. All your dreams can be fulfilled by starting your own Food Business. A more accurate term for those startups is Food Business Operators(FBOs) in India. Just end the process of imagination, it’s the time to take that dream on grounds. The passion, ideas, capital you have all these things, but there is one more and the most important aspect that you should have in mind while planning to start a food business. That one thing is an authorization from the Government for the Food business. For authorizing the food business one needs to take an FSSAI Registration license from the Government of India.
Although there are different types of food licenses that can be opted depending upon the nature and type of food business that one wants to start. There are a lot of conditions that one should consider while selecting the type of license they must possess for their food business. Here in simpler terms, an introduction about all three of them would be given. But before starting with licenses we should have knowledge about the issuing authority first. Howsoever consultancy from professionals is advised in case of proper understanding about all the licenses and their related terms and conditions,
Food Safety and Standards Authority of India (FSSAI) is an autonomous body established under the Ministry of Health & Family Welfare, Government of India. If a person wants to start a business related to food, be it food processing or manufacturing, marketing, packaging, or distribution, it has to register under FSSAI.
FSSAI issues three types of license based on the nature of the food business and turnover:
- Basic Registration
- State License
- Central License
Let’s have a brief knowledge about all three.
Basic Registration – FSSAI Basic Registration is for small food businesses which are expecting a small turnover upto Rs. 12 lakhs per annum. As the name signifies, it is a basic form of FSSAI Food License. All petty and small food businesses must register themselves under FSSAI and obtain the registration certificate
State License – FSSAI State License is required by FBOs who are dealing in manufacturing, storage, transportation, retailing, marketing, distribution, etc. of food & beverages. Food businesses having annual turnover between 12 lakhs to 20 crores and having their business operations within the territory of the state are required to obtain the State Food License.
Central License– FSSAI Central License is required by all the FBOs which are having their units in more than one state. Basically, they are large size businesses and are spread over various states or nations. These food businesses have an annual turnover of more than ₹20 crores. FBOs like importers, large producers, administrators in central government agencies are qualified for issuance of Central Food License. Food businesses operating in at least 2 states need to apply for one Central License for its Registered Head Office and separate registration or license for all branches according to the eligibility criteria relevant to them.
Food business owners who have an FSSAI Basic registration or license must renew it on time, as an expired license is considered the same as not getting one at all. If you continue to run a food business with an expired license, you will be liable to the penalties imposed by the FSSAI. FSSAI-registered food business operators (FBOs) have a competitive advantage over their rivals in the same industry. Since the penalties are greater than the expense of acquiring the license, it avoids legal repercussions. Here are some of the benefits of obtaining an FSSAI License:
- Helps in building goodwill of the company
- It can assist in business expansion
- It helps in the regulation, manufacture, storage, distribution, and sale of the imported goods
- It is also compatible with the international business
- Food safety and security is facilitated
There are plenty of FSSAI registration applications filed on a daily basis but only some of them get approved by the authorities. The reason for rejection is majorly come out to be improper documentation, application for the wrong license, and many more. Therefore, consultancy from experts and professionals are needed whether you are all aware of FSSAI yourself.
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