In this article, we examine the importance of having a food licence number known as FSSAI licence and how you can easily procure one
A decade ago, in a world without food delivery apps, we had a chance to look at whether the the restaurant we’re dining at has an FoSCoS 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 per cent) failing to meet compliances prescribed by the FoSCoS FSSAI.
The regulatory body the Food Safety and Standards Authority of India 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.
Why Is an FoSCoS FSSAI License an Absolute Necessity for a Catering Company?
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.
Though the recent delisting has underscored the importance of having a licence to prove that the basic standards of handling and storing food are complied with, there are other dynamics to not possessing a valid food licence, 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 licence, it may be very difficult to prove to your customers that you maintain high standards of hygiene in your food preparation process.
This also makes it harder for you to cater 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 FoSCoS FSSAI licence.
In the hospitality space with intense competition on enhancing the quality of the services offered, if you do not apply for a licence 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 Catering company operator (except those exempted from licensing)who are mandatorily required to obtain a licence, but manufacturers, trades, sells or distributes any food article without a FSSAI License, then 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 FoSCoS FSSAI licences, they will be enabled again for online ordering services, making a quick action for procurement of the licence, 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 ₹ 12 lakhs. All businesses in the food spectrum, whether manufacturers, retailers, storage and transporters, distributors will require this licence.
Those businesses with a turnover more than ₹ 12 lakhs but less than ₹ 20 crores require a state licence, which they can obtain by filing particulars in the form prescribed.
For businesses with over ₹ 20 crores in turnover, a central licence is required. There are specific trigger limits for certain businesses like the cold chain, hotels, milk facilities etc, which can be accessed through one of our earlier posts.
While Form A takes roughly a week, the licence approval obtained by Form B takes longer.
Documents Required for the Basic FoSCoS FSSAI Registration
As mentioned earlier, the state government grants the basic registration for FoSCoS FSSAI licence to the businesses with less than Rs.12 lakhs turnover.
- The declaration form.
- The letter of authorization.
- Identification proof of the owner such as Aadhaar, PAN etc.
- The letter nominating a person for the business in Form 10.
- Also, property ownership evidence (if the applicant owns the property).
- A copy of the rent agreement (If the applicant has rented the property).
- The food safety management system plan.
- The electricity bill and other details of the business property.
Required Documents for the Central FoSCoS FSSAI License
- List and details of all directors, partners and other members involved. Information like contact details and permanent address etc filled by an approved individual or signatory on Form-B.
- Turnover documentation
- Evidence of premise possession (In the case in ownership of the premises)
- List of machinery equipped, details of horsepower used, etc. For units of manufacture, this is mandatory.
- Document of IE code. Foreign Trade’s Directorate-General issues it.
- NOC produced by FSSAI
- NOC provided by a local authority or municipality
- Ministry of Tourism issued certificate (if the business is a restaurant or hotel)
- In case of re-labelling and repackaging, the manufacturer must submit a copy of the licence issued along with the NOC.
- Chemical Water assessment bacteriological report confirming that the standards of hygiene in food ingredients are and will be followed. For manufacturers, this is obligatory.
- Similarly, a list of manufactured, processed or sold foods.
- Also, a certificate which confirms the Food Safety Management System Plan
- Furthermore, transporters need to provide evidence of the number of vehicles operated within the business.
Required Documents For The State FoSCoS FSSAI Licence
Various documents submitted for the FoSCoS FSSAI state licence are almost the same as the ones submitted for the central licence. But the applicant must submit a few other documents as well:
- Applicant’s name and identification proof.
- Also, the applicant’s passport-sized photograph.
- PAN Card of the applicant.
- Applicant’s address proof with required bills like telephone, electricity bill, etc.
- List of Partners, Directors, and Other Executive Members with their complete contact details.
- NOCs issued by a local body or Municipality.
- The manufacturer issued NOC (if applicable).
- E-code documents published by DGFT.
- Proof of ownership of property (if relevant).
- Also, a copy, if applicable, of the rent agreement.
- The MoA and AOA of the company or Partnership deed of the company.
- Also, the details of the owner or company nominees.
Conclusion
Food is a very important part of the Indian way of life and culture. It is an enormously profitable industry in itself. But sometimes people cut corners to maximize profits beyond the potential of the business and the repercussions of this can be massive. It can cause some kind of an endemic affecting a lot of people even mortally in the process.
This Is why the food industry needs to be closely regulated with a fair amount of oversight from the government at least as far as the hygiene and safety of the food being sold in commercial quantities is concerned If you have any other queries regarding any regulatory or legal matters, feel free to reach out to us and we will connect you to our team of legal experts who will help you address your requirements.
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