The need for an urgent FSSAI approval for your food-business and how to get one easily

Last Updated at: March 20, 2020
1355

Delisting of thousands of food joints from delivery apps 

Recently, leading food delivery apps like Zomato, Food Panda, Swiggy and Uber Eats delisted thousands of restaurants aggregating over 10,000 in number from their listing. In this article, we examine why these companies came down heavily on some restaurants, the importance of having a food license number (known as FSSAI License) and how you can easily procure one.

The Issue

A decade ago, in a world without food delivery apps, we had a chance to look at whether the restaurant we’re dining at, has an FSSAI number on its menu or billboards. Now, that we have the luxury of getting food delivered at our doorstep, our choices are based largely on fancy images and user ratings on leading apps, leaving hardly any room to inspect whether the kitchen that’s making our food meets the basic standards of hygiene, storage, and cooking. Since this posed a huge risk, many of the e-commerce food apps conducted an Internal Food Safety Audit on their restaurant and hotel partners across 34 cities of presence and found many of them (in the range of 30 to 40 percent) failing to meet compliances prescribed by the FSSAI. The regulatory body – the Food Safety and Standards Authority of India (FSSAI) then reviewed the list of restaurants banned from online apps and the data has now been made public and available to the respective State FSSAI bodies for taking action.

Get FSSAI for Your Food Business

Why an FSSAI License is an absolute necessity for your restaurant or hotel

Though the recent delisting has underscored the importance of having a license to prove that the basic standards of handling and storing food are complied with, there are other dynamics to not possessing a valid food license, especially if you’re operating a restaurant, hotel or any other food joint.

While you may be able to save on the annual fee (which is in the range of 2000-5000), in the absence of this license, it may be very difficult to prove to your customers that you maintain high standards of hygiene in your processes. This also makes it harder for you to apply to corporate events, fill tenders or make your way to a larger set-up as most of these opportunities will stipulate the requirement of a valid FSSAI License.

In the hospitality space, where there is intense competition on enhancing the quality of the services offered, if you do not apply for a license despite meeting eligibility guidelines, you’re potentially losing out on improving your procedures and standard of quality that the State Government prescribes in consultation with leading scientific institutions.

Further, if any person or food business operator (except those exempted from licensing)who are mandatorily required to obtain a license, but manufacturers, trades, sells or distributes any food article without a license, then an imprisonment for a term of up to 6 months and a fine which may extend to Rs. 5,00,000 may be levied.

Getting a license – What you should know

The e-commerce apps have stated in their public release that as and when the restaurants provide their FSSAI licenses, they will be enabled again for online ordering services, making a quick action for procurement of the license, a compelling need of the hour.

A basic FSSAI registration has to be done by anyone operating in the food space having an annual turnover of up to INR 12 lacs. All businesses in the food spectrum, whether manufacturers, retailers, storage and transporters, distributors will require this license. For those businesses that have a turnover more than INR 12 lacs but less than 20 crores, a State License is required, which can be obtained by filing particulars in the Form prescribed. For businesses with over 20 crores in turnover, a Central License is required. There are specific trigger limits for certain businesses like cold chain, hotels, milk facilities etc, which can be accessed through one of our earlier posts at https://

While Form A takes roughly a week, the license approval obtained by Form B takes longer. At Vakilsearch, your work is made simpler as all filings and compliances are taken care of, by a practicing professional knowing the nuances of the food industry.

 

0

The need for an urgent FSSAI approval for your food-business and how to get one easily

1355

Delisting of thousands of food joints from delivery apps 

Recently, leading food delivery apps like Zomato, Food Panda, Swiggy and Uber Eats delisted thousands of restaurants aggregating over 10,000 in number from their listing. In this article, we examine why these companies came down heavily on some restaurants, the importance of having a food license number (known as FSSAI License) and how you can easily procure one.

The Issue

A decade ago, in a world without food delivery apps, we had a chance to look at whether the restaurant we’re dining at, has an FSSAI number on its menu or billboards. Now, that we have the luxury of getting food delivered at our doorstep, our choices are based largely on fancy images and user ratings on leading apps, leaving hardly any room to inspect whether the kitchen that’s making our food meets the basic standards of hygiene, storage, and cooking. Since this posed a huge risk, many of the e-commerce food apps conducted an Internal Food Safety Audit on their restaurant and hotel partners across 34 cities of presence and found many of them (in the range of 30 to 40 percent) failing to meet compliances prescribed by the FSSAI. The regulatory body – the Food Safety and Standards Authority of India (FSSAI) then reviewed the list of restaurants banned from online apps and the data has now been made public and available to the respective State FSSAI bodies for taking action.

Get FSSAI for Your Food Business

Why an FSSAI License is an absolute necessity for your restaurant or hotel

Though the recent delisting has underscored the importance of having a license to prove that the basic standards of handling and storing food are complied with, there are other dynamics to not possessing a valid food license, especially if you’re operating a restaurant, hotel or any other food joint.

While you may be able to save on the annual fee (which is in the range of 2000-5000), in the absence of this license, it may be very difficult to prove to your customers that you maintain high standards of hygiene in your processes. This also makes it harder for you to apply to corporate events, fill tenders or make your way to a larger set-up as most of these opportunities will stipulate the requirement of a valid FSSAI License.

In the hospitality space, where there is intense competition on enhancing the quality of the services offered, if you do not apply for a license despite meeting eligibility guidelines, you’re potentially losing out on improving your procedures and standard of quality that the State Government prescribes in consultation with leading scientific institutions.

Further, if any person or food business operator (except those exempted from licensing)who are mandatorily required to obtain a license, but manufacturers, trades, sells or distributes any food article without a license, then an imprisonment for a term of up to 6 months and a fine which may extend to Rs. 5,00,000 may be levied.

Getting a license – What you should know

The e-commerce apps have stated in their public release that as and when the restaurants provide their FSSAI licenses, they will be enabled again for online ordering services, making a quick action for procurement of the license, a compelling need of the hour.

A basic FSSAI registration has to be done by anyone operating in the food space having an annual turnover of up to INR 12 lacs. All businesses in the food spectrum, whether manufacturers, retailers, storage and transporters, distributors will require this license. For those businesses that have a turnover more than INR 12 lacs but less than 20 crores, a State License is required, which can be obtained by filing particulars in the Form prescribed. For businesses with over 20 crores in turnover, a Central License is required. There are specific trigger limits for certain businesses like cold chain, hotels, milk facilities etc, which can be accessed through one of our earlier posts at https://

While Form A takes roughly a week, the license approval obtained by Form B takes longer. At Vakilsearch, your work is made simpler as all filings and compliances are taken care of, by a practicing professional knowing the nuances of the food industry.

 

0

FAQs

No FAQs found

Add a Question


No Record Found
SHARE
Avani Mishra is a graduate in law from the National Law Institute University, Bhopal. She qualified the Company Secretary course with an All India Rank 1 and is a recipient of the President’s Gold Medal for her academic distinctions. She also holds a B.Com degree with a specialization in Corporate Affairs and Administration.