FSSAI License – What all you need to know.
For those engaged in the food business, the FSSAI license is a must requirement. The Food Safety and Security Authority of India (“FSSAI”) working under the Ministry of Health and Family Welfare, Government of India is specific in its terms in determining the entities that are required to obtain an FSSAI license.
For years, there have been several instances where the involvement of big food entities found serving unhygienic and adulterated food supplies to people. It was felt for the need of putting some legal restrictions on food entities to make them think twice before going for any inconsistency in food products.
Why FSSAI license is required?
In basic terms, FSSAI issues a food license to an applicant only if the product qualifies to certain nutritional and quality standards. The license obtained once permitted is to be renewed at intervals in order to keep the food, business complied with FSSAI norms.
For a consumer, the FSSAI license printed on the package of a food product means an assurance towards the product quality to be in excellence. On the other side, it a remedy to a consumer against food adulteration or any disgrace in the food quality to apply for compensation in case of any harm to health.
Legal Requirement under the Food Safety & Standards Act
Even for some pharmaceutical and health care companies, FSSAI is one of the key requirements to operate a business. Other than above, all entities working in the food and beverage industry including in manufacturing, reselling or involved in the distribution of food products are required to obtain an FSSAI license.
Classification of FSSAI License
Following are the classifications of FSSAI license based on the turnover of the entity:
- Basic License –
The registration as FSSAI Basic License is taken by individuals/entities when the turnover is up to Rs. 12 lakhs in the Financial Year.
- State License –
For businesses that have a turnover of more than Rs. 12 lakhs and up to Rs. 20 crores in a Financial Year
- Central License –
For businesses that have a turnover of more than 20 crores in a Financial Year need to take registration under Central License.
Also, the FSSAI Central License can be taken when the entity wants to engage in import or export activities.
Why you should not ignore FSSAI license benefits?
“Whether to apply for an FSSAI license or not ?’’
It is a common question among many Food Business Operators (“FBOs”). There can be several reasons for which the FSSAI license is required.
FSSAI License – Benefits to Brand Identity
FSSAI License is more linked to the brand identity of the product due to the following reasons:
- Providing it a competitive advantage, if compared to other inferior goods in the market.
- Providing its recognition as legally complied and honoring food standards.
- Providing it a mark of ‘’ safe to use ‘’ with specified clear directions of usage.
- Providing it a brand image when the logo of FSSAI being a government approved authority gets affixed with the food brand logo.
FSSAI License – Benefits in Legal Aspects
FSSAI is like another business license to obtained and be placed on the work premises. It is beneficial for an FBO to obtain FSSAI License due to following reasons:
- It will be saved from harassing the obligations of legal authorities and procedures of multiple food inspections.
- It will be able to present its food products complying with standards and bars of quality determined by the food authorities.
- It will be saved from legal penalties that otherwise be charged for not obtaining the license being imprisonment for a period of 6 months or more or even a fine of Rs 5 Lakh (situation-specific).
FSSAI License – For Growth and Expansion of Business
Registration or license under any regulation is a must requirement for the business to avail for growth policies and easy credits from financial agencies. An FSSAI license in this regards also brings several growth opportunities for business by:
- Issuing a license to the FBOs can be used as a supportive document to obtain easy credit from banks and other financial institutions.
- Allowing entities to participate in government or private tenders, specifically made for FSSAI approved entities, securing more work opportunities for business.
- Making the terms of business reliable to its consumers and other related parties, seeking it as a government-approved entity.
FSSAI License in India is abided by the Foods Safety and Standards, Act 2006. The act provides for the eligibility, benefits for entities and penalties for contravention any of the provision of the act. In India, in order to operate a food business in a healthy and legally complied manner, it is advisable to go for FSSAI registration.
To apply for Food supply registration online
Email us at info@cs-india.com