Food business is one of the most profitable businesses, which one can start with less investment. But as food is directly proportional to the health of the people it is really important to follow the governing laws of the food industry. In order to do this business freely in the Indian market it's important to have knowledge about the FSS Act of 2006, which is one of the main governing laws of the food industry. As per this law all the food businesses which are doing sales, distribution, manufacturing, production etc of the food needs to obtain food license from the competent authorities. 

This license is of three types out of which we will talk about FSSAI Central License here. Except Central FSSAI License there are two more food licenses which include State FSSAI License and Local or Basic FSSAI License. Central Food License is mostly for the big businesses like import export food business, e-commerce business etc. 

Fundamental Duties and Functions of the FSSAI 

The major duties of the FSSAI include the following:

• Setting standards for food safety in the Indian food industry so that health and hygiene should be maintained properly 
• Regulating food manufacturing, processing, and distribution is one of the next import duty of the FSSAI, the governing body of the food safety in India 
• Licensing and registration of food businesses is also the part of the duties of this authority 
• Promoting public awareness on food safety is also including in some of the important functions of the FSSAI 
• Time to time conducting surveillance and monitoring of the food market or food industry is also the part of its duties 
• Enforcing regulations and standards which are applicable on the food businesses is also its function which needs to be fulfill in order to maintain food safety 
• Conducting research and development with respect to food safety and collaborating with other stakeholders for food safety.
• Control of adulteration of food and maintain proper hygiene in the industry 

Features of FSSAI Central License

The Central FSSAI License, an important requirement for food businesses operating at a central level, includes various features that contribute to the regulation and enhancement of food safety standards:

• Mandatory for large-scale food businesses so that food quality will be maintained in the food industry which is very diluted before 2006 
• Required for manufacturers, packers, and re-packers of the food in order to maintain the food safety measures 
• Applicable for all those businesses whose annual turnover is more than Rs. 20 crores.
• Comprehensive compliance with stringent food safety standards which is necessary to follow so that food industry can be safe for the consumers 
• Suitable for exporters and importers of food products, as per the guidelines of the FSSAI such businesses need to make it mandatory. Turnover does not matter in their case. 
• Enables nationwide distribution and interstate trade and facilitates them in many ways 
• Involves rigorous inspection and documentation.
• Centralized authority for oversight and regulation. 

Businesses Requiring Mandatory FSSAI License

 The list of businesses which requires mandatorily FSSAI license are given or discussed below for your kind referral: 

• Restaurants
• E-Commerce Businesses, including Online Home Kitchens
• Businesses Selling Essential Food Products
• Food Business Operators of the Indian Railways
• Businesses Selling Coffee or Coffee-Based Products
• Manufacturers of Powdered Tea
• Food Vending Machines
• Businesses Selling Herbalife-Based Products
• Food Business Operators Involved in Import or Export of Food Products
• Food Business Operators of the Indian Airports
• Food Marketing Companies
• Businesses Exporting Cashews
• Amazon Warehouses
• Hotels
• Supermarkets
• E-Commerce Businesses Selling Prepared Food Online (ex., Zomato, Uber Eats and Swiggy etc.)
• E-Commerce Businesses Selling Food Products Online
• Online Businesses Selling Packaged Commodities (ex., Flipkart, Amazon, etc.)
• Catering Businesses
• Event Management Businesses
• Colleges and Institutions with Canteens
• Businesses Involved in Retail, Export or Import of Fisheries
• Agricultural Products Businesses
• Manufacturers of Packaged Products
• Manufacturers of Various Types of Oil
• Food Outlets
• Hospitals
• Manufacturers of Packaged Drinking Water
• Businesses Involved in Retail, Export or Import of Dairy Products
• Manufacturers of Chocolate and Chocolate-Based Products
• Food Transporters
• Re-Packagers
• Milk Chilling Units
• All Types of Food Business Operators

Benefits of Obtaining an FSSAI Central License

In addition to ensuring compliance with food safety regulations, obtaining a Central FSSAI License offers various advantages for businesses, including:

• Nationwide recognition has been come up with this licensing
• Compliance assurance with the food safety law is another important benefit of this license
• In the export-import food business this license facilitates the business
• Regulatory compliance has been fulfilled through this license which saves the business against many penalties
• This makes you different and helps in getting consumer trust
• It offers various competitive advantages that help attract both consumers as well as investors to the business
• When a business owner wants to expand their business then also this license needs to be there
• Improved brand image in the competitive market and helps in getting profit
• Access to government schemes which are particularly for certain kinds of businesses. Without this license, one cannot avail of the benefits of those schemes
• Ease of operations and management of the business
• Get access of the various kinds of training
• Makes the business reliable and credible 

Essential Criteria for Obtaining FSSAI Central License

To secure a Central FSSAI License, food businesses must meet specific criteria, demonstrating their commitment to adhering to food safety standards. The essential criteria include:

•  Annual production capacity exceeds 2 metric tons for milk and meat processing units.
• Capacity exceeding 1000 liters per day for milk processing units.
• Production capacity exceeds 500 kg per day for meat processing units.
• Annual turnover exceeds Rs. 20 crores for manufacturers, Rs. 12 lakhs for dairy units, and Rs. 20 crores for storage units.
• Presence of centralized catering units under the Central Government or Indian Railways.
• Food catering units in establishments like clubs, canteens, or institutions exceeding Rs. 12 lakhs in turnover.
• Wholesalers having an annual turnover exceeding Rs. 30 crores. 

Food Businesses and Applicability of Central FSSAI License 

In addition to the general criteria, there are specific conditions that warrant the application for a Central FSSAI License which are given below: 

Documents Required for FSSAI Central License Application

To initiate the application process for the FSSAI Central License, the following fundamental documents need to be submitted along with the application:

Procedure to Obtain FSSAI Central License

Securing the Central FSSAI License involves a systematic process. Given below is the process for obtaining the license:

• Step 1: Application Filing Via Form B

The license seeker initiates the process by filing Form B with the licensing authority. During this step, the applicant must adhere to the basic turnover criteria.

• Step 2: Applicant Scrutiny by FSSAI Officials

The submitted application, along with the required documents, undergoes in-depth scrutiny by FSSAI officials. This step ensures that all necessary information is provided and meets the regulatory standards.

• Step 3: On-Site Inspection by FSSAI's Official at the Business Place

FSSAI sends designated officials to conduct an on-site inspection of the business place. This visit aims to assess the level of compliance with the standards recommended by FSSAI. Non-conformities discovered during this inspection may pose a risk of application cancellation.

• Step 4: Approval of Application and Grant of License

Upon approval by the licensing authority, the application receives the green light and the FSSAI Central License is granted. The certificate is then issued to the license seeker within a few days. With the certification in hand, the business owner is authorized to commence full-scale operations.

Note: Publication of FSSAI Certification on Business Place 

The FSSAI Central License certificate must be conspicuously displayed at the licensee's place of business. This assures openness and adherence to legal standards.

Validity and Renewal of FSSAI Central License

Central FSSAI License which is also known as Central Food License is minimum can be valid for 1 year and maximum it can go up to 5 years. It depends on how many years the food business owner had taken the license. A business owner can take this license at a time from one to five years, not more than that. Accordingly one needs to renew the license. 

Process of Renewal of FSSAI License

• Apply online before 30 days of the expiry date of the license.
• To file the renewal application you need to go to the official website of the FSSAI and fill out the application form for the renewal
• Verify and update documents as per the requirement of the authorities in the same application
• Pay the renewal fee online to get renewal of the license while submitting the application
• Inspection if required by the authorities needs to be done. Kindly corporate in the same if any officer comes to visit your business place
• Wait for the approval by the FSSAI
• Receive renewed license digitally.
• Display renewed license.

Compliance Evaluation

The food safety officer conducts inspections using a checklist and categorizes the compliance as:

• Compliance (C)
• Non-compliance (NC)
• Partial compliance (CP)
• Not observed/Not applicable (NA). 

Documents Required for the Renewal of FSSAI

When filing for renewal, the applicant needs to upload the following documents:

• Updated Form-B application.
• Proof of possession of premises.
• Declaration form.
• List of food products.
• Food safety management plan.
• Copy of existing FSSAI license.
• NOC from Municipality/Panchayat.
• Other specific documents if required.

Non-Compliance with FSSAI Regulations: Consequences and Penalties

It is really important to comply with the FSSAI regulation in order to save the business against the penalties and other consequences of non-compliance.

Consequences of non compliance with FSSAI Regulations 

• Seizure or recall of food products.
• Suspension or cancellation of FSSAI license.
• Monetary fines or penalties.
• Legal action, including prosecution.
• Damage to brand reputation.
• Loss of consumer trust.
• Business closure in severe cases.
• Health risks and potential harm to consumers.

Fines and Penalties for non compliance with FSSAI Regulation

• Fine of Rs. 25,000 for small manufacturers with a turnover of Rs. 2 lakh if food quality does not comply with the Act.
• Fine of Rs. 5 lakhs for food that falls below standards.
• Fine of Rs. 3 lakhs for misbranded foods.
• Fine of Rs. 10 lakhs for inaccurate product representation or deceptive advertising.
• Penalty of Rs. 2 lakhs for not complying with FSO's instructions.
• Fine of Rs. 1 lakh for unhygienic manufacturing or processing.
• Fine of Rs. 1 crore for extraneous food items.
• Imprisonment of up to six months and a fine.
• Fine for selling substandard quality food and violating compliance requirements.
• Fine for selling lower-quality food and violating enforcement criteria.
• Fine for producing, storing, selling, distributing, or importing misbranded food products.
• Fine for manufacturing, selling, or importing food products containing extraneous or foreign matter.