Why Is it Necessary for Small Business to Get an FSSAI Licence?

Small food business units include individual home-based culinary businesses, food delivery services, and home-based cooking businesses. These companies operate according to many categories. A person or group of workers takes the customers’ order, makes the food, and then delivers it.  

Therefore, to ensure the food's standard and quality and it's smooth running an FSSAI licence are necessary. 

Manufacturers, traders, restaurants, grocery stores, home-based food business owners, small-eateries, importers, exporters, processors, merchants, dairy farms, and other similar businesses/food business operators must obtain the FSSAI registration for small businesses.  

You will receive a 14-digit registration number, commonly known as a food licence number, after successfully completing the registration process. All food packaging must have this number printed on it and be visible on the property. This number is different for each person and contains information on the producer's licence, specific enrolment and the assembling state.  
 

Condition Required for Small Businesses to Get FSSAI Licence
 

FSSAI registration is a basic requirement to get an FSSAI licence and it is needed for all business owners involved in small businesses. 

• Any proprietor of a food business in India with annual revenue of little more than Rs. 12 lakh.
• A small retailer that sells food items
• Small businesses involved in the food industry, as well as the following:

• 100 kg/litre of food can be produced every day.
• handling and collection of 500 litres or more of milk each day.
• Up to two large animals, 50 poultry birds, and 10 small animals can be slaughtered each day, while this number could be lower.
• Someone who sells or manufactures food products on their own
• The temporary stallholder makes food sales
• Anyone else outside a caterer who serves meals during a social event 
   

Importance of FSSAI Registration for Small Businesses
 

1. Increase Awareness 
 

The FSSAI registration for small businesses offers the security of food item manufacture, transport, packing, and sale. This raises awareness among customers and food business owners about hygiene and determining which foods are suitable for consumption. 
 

2. Goodwill

Goods that are registered with FSSAI will always be different from the competition. This is a result of the safety and quality management systems used by enterprises with an FSSAI licence or registration. The FSSAI logo fosters loyalty among customers and a sense of responsibility toward owners of food businesses.
 

3. Avoid Legal Issues
 

The majority of FBOs decide to forego getting an FSSAI licence because they believe it to be a costly, time-consuming, and complex documentation process. On the other hand, the process should not be avoided at all costs. A food business owner who conducts business without having the appropriate FSSAI licence may be sentenced to imprisonment and can face up to 5 lakhs.
   

4. Expand Your Business
 

The manufacture, storage, distribution, sale and import of food are all subject to FSSAI Registration for small business regulations. It ensures food safety and guarantees that the food is fit for human consumption. This fosters goodwill, which in turn makes your company stand out and gives it a chance to grow significantly.  
 

5. Science-based Principles 
 

All firms adhere to some safety standards, but the norms and guidelines that the FSSAI has established are global and scientific. This indicates that due diligence is exercised when developing the FSSAI requirements for any food industry. Thus, the quality management system is always superior to any other business.  

Documents Required for FSSAI Licence for Small business 
 

Following are some important documents that are required to submit to obtain an FSSAI licence for small businesses in India:

• Recent passport-sized photographs of food business owners
• Any identity proof- PAN Card, Aadhar Card, Ration Card, Driving License, Voter’s ID card, Ration Card, etc.
• Detailed information about products planned 
• Properly filled and signed Form-B, COI (Certificate of Incorporation), MOA, Partnership Deed, and Articles of Association (AOA).
• Building documentation, such as a rental agreement, etc.
• List of all the partners and directors, Form IX.
• Raw material sources.
• The Food Safety Management System's structure.
• Reports of water tests.
• Equipment list.
• Submit any supporting documentation, such as a NOC from the panchayat or a NOC from the health department.

Types of FSSAI Licence Registration in India 
 

The FSSAI registration process is based on production capacity, business types, and turnover. FBOs may be eligible for licences such as a basic licence, central licence, or state licence depending on the installed capacity and turnover.
 

FSSAI Basic Registration
 

Operators in the food business, such as small-scale food producers, storage facilities, transporters, retailers, marketers, distributors, and so on, often receive this type of FSSAI registration. Generally speaking, it is for food businesses with annual revenue of at least 12 lakh rupees.

FSSAI State Licence
 

This kind of FSSAI licence is often issued to small to medium-sized food producers, storage facilities, transporters, merchants, marketers, and distributors, among others. It is mostly for food enterprises with annual sales of over 12 lakh but under 20 crores.

FSSAI Central Licence 
 

A central FSSAI licence is required if the food firm has an annual revenue of more than Rs. 20 crores.

Businesses that do not fall into the aforementioned two categories must apply for a central licence. Importers and exporters are required to do so, and if your company has multiple locations across the nation, you must apply for a central FSSAI licence for your registered address as well as additional basic state or central licences based on the turnover of each outlet. This licence has a 5-year maximum and a 1-year minimum validity.

What Steps Must Be Taken to Receive an FSSAI Licence for Small Businesses?
 

To obtain an FSSAI licence small business owners must the following steps:
 

• The applicant must submit an application form to the food and safety department's office together with all required paperwork as the first and most important step.

• The food and safety agency will decide whether to accept or reject the proposal. Additionally, the department gives the applicant a formal letter of approval.
   
• The food and safety division issues a registration certificate if the application is accepted.

Conclusion 

If you operate a small food business, you must meet the abovementioned requirements in order to do so. The FSSAI licence is crucial for every small food business operator to run the business without any legal discrepancy and also to promote the growth of the company. If you face any difficulties in registering for FSSAI contact our experienced professionals at Online Legal India who will help you in getting your FSSAI registration easily for your business.