Any businessperson or organizer, who wants to start a business in the food sector, may be it food processing or food manufacturing, packaging or distributing, has to register for Food Safety and Standard Authority of India FSSAI.

FSSAI monitors these businesses under the guidelines and regulations listed in FSSAI Act 2006.

With expert assistance from Realtax, you can get an FSSAI license in 4 simple steps -

Guidance on selecting the food license types
Verification of your FSSAI registration documents
Filing your online FSSAI application
Procurement of FSSAI food licence

Renewing FSSAI registration
You can renew your FSSAI license 30 days before your current license gets expired. To do this, you will have to give Realtax your present license number. Once we have received your license number, for renew your FSSAI registration, we will submit Form A and Form B. This process could take between 30 and 40 days. The renewal fee is the same as the cost of a new license as per the government.

For multiple manufacturing units in different states, I require a common license for the company, or separate licenses for each unit?
You will need a central license for the registered office of your company. For each state in which you have your manufacturing units, you will also need individual state licenses.

Do I need an FSSAI license for the import of foodstuff to sell in India?
Yes, you need a central license registered from the address in Import Export Code.

Is it mandatory for 100% export units to get FSSAI licensing?
Yes, whether it is import or export of food items, FSSAI licensing is necessary.

Is a license from FSSAI mandatory for the manufacture of food additives alone?
Yes, you will need an FSSAI license whether you manufacture, distribute, transport or trade food additives.

Is the FSSAI license needed for a catering business authorised by the Central Government?
This license is mandatory for all catering establishments, even the railways, defense and airport.

What is the requirement when there is more than one warehouse, within the same locality but separate entities?
In case, you have a few separate warehouses within one city, then you will need separate licenses for each. If all your warehouses are integrated to one quad, however, you can apply for a single license citing the quad’s address.

How do I renew my FSSAI license?
At Realtax, the service for  FSSAI license registration and renewal is provided by refering to the following link.

What is the procedure to get a restaurant license?
At Realtax, we index this process so that you can do it easily, simply and fast. You have to just fill an form online and send the required documents to us and we will get your FSSAI restaurant license for you. We’ll inform you within 20 to 40 working days about the status of your license and you can sit back and focus on your business.

How to process FSSAI online registration in India?
An FSSAI was introduced to keep a view on the quality and standards of food manufacturing, storage, distribution, sales and import of food, thereby reducing and eliminating adulteration, unhygienic practice of processing, improper collection of ingredients and more. It can be divided into three categories:

• Basic FSSAI for all single-state businesses with an annual turnover under Rs 12 lakh
• State FSSAI for single-state hotels, restaurants, and medium-sized food manufacturers with an annual turnover of Rs 12 lakh to Rs 20 crore.
• Central FSSAI for enterprises with a turnover of over Rs. 20 crore

 

Steps to procure an FSSAI food license in India:
The following steps have to be followed for getting the permit in India:

 

Fill In The Application:
Form B of the Food Safety and Standards (Licensing and Registration of Food Businesses), Regulations 2011 has to be filled upon selecting the type of FSSAI license.
Send The Form To Authority:
The completed application has to be sent to the Licensing Authority (State or Central).
The required documents are:

1. A self-attested declaration as provided in the format in Annexure 1

2. Copies of documents provided in Annexure 2 of the Regulations.

3. Fees prescribed in Schedule 3, depending upon the category your food business falls in.

Other mandatory documents needed are:

a) In case of a proprietorship company, photo ID and address proof of the proprietor, directors, or partners with all the proofs should have been issued by the Government of India.

b) List of items that need to be manufactured, procured, packaged, etc.

c) Blueprint or layout of the manufacturing, storage or distribution facility

d) Business name

e) Food analysis report (as demanded by the FSSAI)

f) Raw material source and NoC from the local municipality.

 

Additional Information:
If the licensing authority requires any additional information relating to the application or if the application is found to be incomplete, the same has to be informed to you in writing within 15 days of your application. The remaining information has to be within 30 days from intimation, if failed to submit the application for the license would be rejected.

 

Application Number:
Once the complete application is received, including the additional information (if asked for) by the Authority, an Application ID number is issued. This ID number has to be used for reference and in all future correspondence. The applicant can expect to get the license within 60 days of the issue of such an Application ID number.

 

Inspection report:
Once the application ID is received, the Licensing Authority may direct an officer for inspection of the premises in which the business has been opened as per the law. The Inspecting Officer may issue a notice, guiding on necessary steps to be taken or changes to be made the premises to ensure general sanitary and hygienic conditions. All the necessary steps have to be taken and changes to be made. The same need to be intimated to the authority within 30 days or within the time period allowed.

 

License approval:
Within 30 days from receipt of the inspection report, excluding the time taken to comply with the feedback in the inspection report, the concerned licensing authority shall consider the application and may either grant a license or reject the application. However, before refusing the license application, the applicant will be given an opportunity of being heard, and if the authority still decides to reject the application, the reasons for refusal shall be recorded in writing.

 

Receival of FSSAI license:
Finally, license will be issued in Format C under Schedule 2 of the regulations by the licensing authority. Under which FSSAI license category you should apply for your food business?
Any person who is involved in food business in India has to mandatorily apply for an FSSAI license as per the FSSAI Regulation 2011. Depending on the type of business, the Government has several thresholds prescribed; crossing which, there is an absolute need to apply for the FSSAI License. The set thresholds are on the basis of turnover, production, installed capacity, star rating, vehicles possessed for food transport, etc. Irrespective of whether the individual is the owner of a commercial unit or a home-based food supplier, whether the mode is online or offline, the scope is very wide. It covers all food service providers which include hotels, restaurants or boarding houses, clubs serving food, canteens at commercial places and educational institutions, catering service providers, food vendors, persons dealing with organic products, etc.Basic registration under FSSAI:
A basic FSSAI license has to be procured by individuals operating in the food space who have an annual turnover of up to INR 12 lakhs. All businesses in the food spectrum, whether manufacturers, retailers, storage and transporters, distributors will require this license, such as:

• All manufacturers of food, including petty hawkers, vendors, street stall owners
• A small-scale or cottage or other industry relating to food businesses with an annual turnover of up to INR 12 lakhs and whose:
• The production capacity of food (other than milk and milk products and meat and meat products) does not exceed 100 kg/litres per day or
• Procurement or handling and collection of milk is up to 500 litres of milk per day or
• Slaughtering capacity is 2 large animals or 10 small animals or 50 poultry birds per day or less.

 

State and central license – What is the difference?
State and central permits are the two broad categories of FSSAI licensing. These licenses are more complex, detailed and extensive than the FSSAI Registration process. While registration can be obtained easily in a week by filling particulars of Form A, the licensing process is likely to take longer after Form B has been furnished.

 

Decoding the state license
For those businesses that have a turnover of more than INR 12 lakhs but less than 20 crores, a State License is required.

While each state is empowered to fix its own fee, in Delhi, the fee for obtaining a new license is as follows:

Manufacturer/Miller	Fees(Rs/Year)
About 1MT per day Production	Rs. 5000
10,001 to 50,000 LPD of milk or 501 to 2500 MT of milk solids per annum	Rs. 5000
Below 1MT of production	Rs. 3000
501 to 10,000 LPD of milk or 2.5MT to 500 MT of milk solids per annum	Rs. 3000
Hotels upto 4 Star	Rs. 5000
All food Service providers including restaurants/boarding houses,clubs,etc. serving food,Canteens (Schools,Colleges, Office, Institutions),Caterers,Banquet halls with food catering arrangements, food vendors like dabbawallas & other food Business Operator	Rs. 2000

Source: https://foodlicensing.fssai.gov.in/indexSL_DL.aspx

 

The trigger limits for obtaining the State license for some of the popular businesses are as follows:

• Dairy Production & chilling business: Up to 500 LPD of milk or 2500 MT of milk solids per year
• Slaughtering units: 2-50 Large Animals, 10-150 Small Animals, 50-1000 Poultry birds
• Meat processing: Up to 500 kg a day
• Vegetable oil processing: Up to 2 MT a day and over INR 12 lacs annual turnover.
• Cold storage capacity: Up to 1000 MT
• Wholesale turnover of up to 30 crores
• Retailer and distributor turnover of up to 20 crores
• Restaurant turnover of up to 20 crores
• Three-star hotels (below five stars) having turnover more than 12 lakhs.

 

Decoding the central license:
Businesses having a turnover above INR 20 crores should apply for a central license. This fee is capped at INR 7,500 per year for both new licenses as well as renewals. The license is issued for a maximum period of five years.

 

The trigger limits for obtaining the central license for some of the popular businesses are as follows:

All proprietary foods
All importers
Dairy production & chilling business: More than 50,000 litres of liquid milk or 2500 MT of milk solids per year
Slaughtering units: More than 50 large Animals, More than 150 small animals, More than 1000 poultry birds
Meat processing: More than 500 kg a day
Vegetable oil processing: More than 2 MT a day and over INR 12 lakhs annual turnover.
Cold storage capacity: More than 1000 MT
Wholesale turnover greater than 30 crores
Retailer and distributor turnover of greater than 20 crores
Restaurant turnover of more than 20 crores
Five star and above hotels
Food catering in defence
Food catering in units under the Central Government agencies like air, airport etc.
Food operators operating in more than one state
A detailed list of documents and forms required can be obtained by accessing the official FSSAI website at https://foodlicensing.fssai.gov.in/indexSL_DL.aspx and scrolling down to the bottom of the screen to Form B and documents required under the Central License and State License tabs, respectively.

What is the need of FSSAI food license for food businesses in India?
Every day, more than a hundred businesses are launched that work around food – from dairy and meat to vegetables, spices, and beverages. But does anybody really know whether the eatables coming on to our plates are palatable? The Food Safety and Standards Authority of India (FSSAI) license is aimed at doing just that. The basic legislative intent behind introducing food license is to keep a tab on the quality of the output of food products. As it is an accepted fact that food has got increased of chances of getting contaminated due to reasons like unhygienic processing, improper collection, exposure to temperature and air or when it is being sold past it shelf life, a governing body to regulate the industry practice was needed. Hence, the FSSAI undertakes scientific food safety management and works closely with businesses to ensure that the food that is made available to people is safe for human consumption.

Who needs an FSSAI license?
Irrespective of whether the individual is an owner of a commercial unit or is a home-based food supplier, whether the mode is online or offline, all eligible businesses in the food spectrum, from manufacturers, retailers, storage and transporters, distributors will require this license. Since the scope is very wide, it covers all food service providers, including hotels, restaurants, boarding houses, clubs etc. serving food, canteens of offices and educational institutions, caterers, banquet halls with food catering arrangements, food vendors like dabbawalas etc.

The FSSAI license is usually issued by the State Government. However, for food operators that operate in more than one state, the Head Office needs to apply for a Central license. Further, importers and exporters need to apply for the Central License.

How to start a restaurant in India?
Here is a complete guide on starting a restaurant in India.

 

Step 1: Analyse the diverse restaurant industry
With the changing food habits and the increased number of people interested in gastronomy, it is key to understand the type of food joints like resto bars, cafes, themed restaurants, takeaway joints, etc. Once the type and the concept is finalized, it is important to calculate the average price per customer which means the amount a customer would spend on the restaurant.

Step 2: Calculate the funding and operational expenses
Better planning always leads to favourable outcomes. A well-crafted business plan mentioning the prospects of the business, financial aspects which include a detailed report of the expenses in equipment, advertisement, interiors, overheads like electricity, workforce, gas and more.

Step 3: Get the required licenses
In India, the mandatory food license to be obtained is from the Food Safety and Standard Authority of India (FSSAI). The license is a unique 14-digit number that ensures the food conforms to the safety standards.

 

Liquor License
If the restaurant serves both liquor and food, then a liquor license has to be obtained from the state’s local excise commission. It can be downloaded directly from government websites. The sale of alcohol inside the restaurant without legal permit is an offence and the owner is liable to a hefty penalty and the business may also be forced to shut down permanently.

 

Eating House License
This license can be procured from the Licensing Police Commissioner of the particular city where the restaurant is being opened.

 

Health/Trade License:
Keeping in mind the well-being of the public, the Municipal Corporation Act, 1957 mandated the Health Trade license for all eateries alike. This has to be issued by the respective state’s Municipal Corporation.

 

Shop & Establishment Act:
As per the law, all commercial establishments including eatery joints, food trucks and all other types of restaurants have to get the Shop & establishment act within one month of registering the business. This act regulates all the working conditions of the employees like work timings, leave policy, recruitment of children and so on.

 

By hiring a legal expert, availing all these licenses is not a hassle.

 

GST Registration:
Ever since the GST was introduced to avoid double taxation, a lot of changes are taking place. Hence, it is important for the owners to keep a tab on the new rules for restaurants and their implications.

 

Certificate Of Environmental Clearance
A restaurant is legally obliged to ensure its operations are not causing a hazard to nature and environment and is required to get the Certificate of Environmental Clearance from the government.

Step 4: Recruit the right manpower:
Employees are the strength of any business and hiring the right people is one of the biggest challenges. Depending on the type of the restaurant, the workforce has to be a balance of people at all levels, executives, chefs, waiters, stewards and so on. It is also essential to decide whether they would be in permanent or contractual positions and all legal agreement documents have to be drafted well.

Step 5: Design the food menu
Although there might be a fair idea on the type of cuisine, a smart menu can create a significant impact. While ideating new dishes, the cost, sourcing of the ingredients and other raw materials, the expertise of the selected chefs all should be kept in mind.

Step 6: Explore new tech trends
One of the most ignored aspects of the restaurant business is technology. The innovation of technology has been tremendous in the food space ranging from mobile apps, ghost restaurants, artificial intelligence to robot kitchens and the list is endless. A bit of research on how to use the latest innovations in streamlining the restaurant operations to add a personal touch to the customers can help a way more in branding and popularity.

Step 7: Advertising and marketing
To get a name in the market applying an effective advertising and marketing startegy is needed. One of the traditional methods that still garners a lot of attention is the distribution of pamphlets in newspapers mentioning about discounts and coupons and other offers. Having a dedicated website and social media channels increase the popularity and credibility of the restaurant and reaching out to food bloggers for influencer marketing is another potential way.

Want to know about FSSAI completely? Read this article: A complete guide of FSSAI online registration in India.

How to arrange a tie-up between restaurant and an online food delivery app?
When the restaurant is set-up, staff are recruited and the tables are set, next comes the task of popularising the business and attracting the customers. One way is to advertise, but with the uncertainty in turnover involved compared to the investment, it may be wiser to consider the other alternative – partnering with online food delivery applications. It not only helps popularise the place with its distinctiveness but also helps reach out to a whole new customer base. The best part about most of the upcoming food delivery applications is that registering on them is free of cost, however, they charge a commission based on the earning.

FSSAI License – A prerequisite to every food business
Irrespective of whether you are the owner of a commercial unit or a home-based food supplier, whether the mode is online or offline, the scope is very wide. It covers all food service providers including hotels, restaurants/boarding houses, clubs etc. serving food, canteens of offices and educational institutions, caterers, banquet halls with food catering arrangements, food vendors like dabbawallas etc. Before taking the big jump, it is important to check which type of FSSAI license is required and the same has to be got at the earliest. Not long ago, many food delivery applications including Swiggy and Foodpanda had removed names of hundreds of restaurants that had not obtained an FSSAI registration number.

 

Filling basic details on the delivery apps’ website
The first step is to fill out basic details of your business, its location, number of outlets, types of cuisines served, website links to the restaurant, contact details etc.

 

Getting necessary documents
Other than the FSSAI License, which is of great importance, you may be required to take a GST Registration number. Other documents that may be required are scanned copies of PAN card in the business’ name, proprietor details like Aadhar card, Voter ID, Passport, Driving License, electricity and other utility bill copies.

 

Reading the terms and conditions carefully
This is possibly the most important step in the process, as it spells out your liabilities and obligations after the online food delivery application accepts the request for a listing. As a participating restaurant, you will be required to maintain appropriate standards of hygiene, presentation and timely delivery of the food. You may also have certain rights under the contract against the food delivery application. The most crucial condition to look out for is the range of commission being charged. While most online platforms like Swiggy and Zomato may charge between 15-25 percent of the total bill amount, they also have dynamic pricing norms and the commission in some cases may be as low as 5-8 percent (for newer areas or a niche offering of a new food product).

 

Linking payment mechanisms
The last step is to give details of your bank account or online wallet for receiving the receipts from purchases made for your restaurants on the food delivery company’s website or mobile app.

There exist several distinct and exclusive advantages of associating with online food delivery companies. Through this arrangement, you may be able to by-pass appointing and managing your delivery, which may entirely be taken care of by the company. All food delivery applications, with their website and mobile-based versions, give you the ability to showcase your menu, pictures of food and the set-up without incurring extra advertising costs. The feedback mechanism also helps in guiding you to tailor your menu, servings and improve on shortcomings.