Food safety is very important for all food businesses. Small businesses can struggle to follow the rules and keep food safe. This blog explores FSSAI Registration for Small Food Businesses and benefits for small-scale food businesses.
Food safety is very important for all food businesses. Small businesses can struggle to follow the rules and keep food safe. To help, they can get an FSSAI license from India’s food safety authority. The food industry in India is highly regulated, and for good reason. Ensuring food safety is critical for protecting public health and preventing foodborne illnesses. Small food businesses may find it hard to follow regulations and ensure food safety. In this blog, we will discuss the importance of FSSAI registration for small food businesses.
Important Things About FSSAI Registration for Small-Scale Food Businesses
Here are important things to know about FSSAI registration for selling homemade food in India:
- Mandatory Registration: All businesses involved in selling homemade food must register with FSSAI or obtain basic FSSAI registration.
- Revenue Threshold: If your yearly revenue exceeds Rs 12 lakh, you need to obtain an FSSAI license. The type of license depends on your annual sales.
- State and Central Licenses: If your sales are between Rs 12 lakh and Rs 20 crore, you must obtain a state-level FSSAI license. Sales exceeding Rs 20 crore require a license from the Central FSSAI office.
- State-Specific Validity: The license issued is valid only in the state where it was obtained and cannot be used in other states.
- License Duration and Renewal: FSSAI registration is typically valid for one to five years, and it can be renewed upon expiration. Renewal applications should be submitted 30 days before the registration expires.
- Late Renewal Penalty: Late submission of renewal applications may attract a penalty of Rs 100 per day.
- Non-Compliance Penalty: Selling homemade food without proper FSSAI registration can lead to penalties of up to Rs 2 lakh as per the Food Safety and Standards Act of 2006.
It’s crucial to comply with FSSAI registration requirements to ensure legal compliance, maintain food safety standards, and avoid penalties.
Key Points to Remember for Small-Scale Food Businesses in India
Here are key points to remember for a home-based food business in India as per FSSAI standards:
- Cleanliness: Maintain a clean and hygienic environment in the area where meals are prepared. Regular cleaning, disinfection, and proper ventilation should be ensured.
- Water Supply: Ensure a clean and reliable water supply for food preparation and cleaning purposes.
- Utensils and Equipment: Follow proper cleaning procedures to prevent the accumulation of dirt and bacteria on utensils and equipment. Use clean and sanitized utensils for food preparation.
- Personal Hygiene: Emphasize personal cleanliness and provide workers with necessary protective equipment like gloves, hats, and clean aprons.
- Safe Ingredient Handling: Ensure proper storage and handling of ingredients to prevent contamination and maintain their quality.
- Record-Keeping: Maintain records of ingredients, suppliers, and production processes to ensure traceability and facilitate food safety audits.
- Allergen Management: Take necessary precautions if your food products contain common allergens, such as nuts or dairy, to prevent cross-contamination and clearly label allergenic ingredients.
- Training and Awareness: Train your staff on food safety practices and create awareness about the importance of hygiene and safe food handling.
By adhering to these guidelines, home-based food businesses can ensure compliance with FSSAI standards, and promote food safety, and satisfaction of their customers.
Benefits of FSSAI Registration for Small-Scale Food Businesses
Obtaining a food license for a small business offers several benefits:
- Legal Compliance: Having a license ensures that the food business operates within the legal framework and complies with the food safety regulations set by the government.
- Goodwill and Trust: FSSAI registration builds trust and credibility among consumers, as it signifies that the food products meet the required quality and safety standards.
- Food Safety Assurance: The FSSAI logo on food products assures customers that the food has undergone necessary quality checks and is safe for consumption.
- Consumer Awareness: Displaying the FSSAI registration number at food premises creates consumer awareness and confidence in the hygiene and safety practices followed by the business.
- Business Expansion: FSSAI registration is often a prerequisite for expanding the food business, such as opening new branches or entering into contracts with institutional buyers.
- Access to Funds: Having an FSSAI license can make it easier for food businesses to attract investments from investors, as it demonstrates compliance with regulatory requirements.
- Access to More Markets: Obtaining an FSSAI license grants small-scale food businesses access to more markets. Retailers and distributors often require this license before selling food products. It enables businesses to expand their reach and increase sales and revenue.
- Improved Business Processes: Getting an FSSAI license can improve small-scale food businesses. It leads to better processes, reduced waste, and higher product quality. FSSAI inspection identifies areas that need improvement for better compliance and food safety.
Overall, obtaining an FSSAI license not only ensures legal compliance but also enhances the reputation and credibility of the food business, leading to increased consumer trust and business growth opportunities.
Benefits of FSSAI License for Food Delivery Platforms
Food delivery platforms like Zomato, Swiggy, and Uber Eats require that all food businesses listed on their platforms have a valid FSSAI license. This is to ensure that the food products being sold are safe for consumption and meet regulatory standards. Obtaining an FSSAI license is crucial for small-scale food businesses. It is also important for those selling products online.
FSSAI License Eligibility for Small-Scale Food Businesses
FBOs (Food Business Operators) are required to obtain an FSSAI (Food Safety and Standards Authority of India) license, which can be classified as a State FSSAI License or Central FSSAI License based on the size and nature of the business.
Large manufacturers, importers, exporters, and businesses operating on a large scale need to obtain a Central FSSAI License from the central government. On the other hand, small to medium-sized manufacturing units, transporters, marketers, traders, etc., need to obtain a State FSSAI License from the state government. The turnover criteria for a State License is between Rs 12 lakh to Rs 20 crore.
The license is mandatory for various businesses, including manufacturing units with a capacity of 2MT per day, dairy units handling up to 5000 liters per day, 3-star hotels and above, repackers, relabelling units, clubs, canteens, and all catering businesses. The duration of the license can range from a minimum of 1 year to a maximum of 5 years.
To apply for a Central License, the FBO must have a turnover exceeding Rs. 20 crores and operate in multiple states. This license is mandatory for all importers and exporters. The duration of the license can range from a minimum of 1 year to a maximum of 5 years.
Why Small-Scale Food Businesses in India Should Obtain an FSSAI License
Small-scale food businesses in India can benefit greatly from obtaining an FSSAI license. This can help them follow food safety regulations, build customer trust, and access new markets. Further, it improves their business processes and protects them from food safety incidents. Further, having an FSSAI license can help businesses stand out. It also gains access to valuable training and resources. It’s important to note that getting an FSSAI license requires ongoing compliance. But, the benefits of doing so can lead to a prosperous future for small-scale food businesses.
FSSAI License Categories
There are three main types of FSSAI licenses. They are Basic Registration, State License, and Central License. Basic Registration is for small-scale food businesses with an annual turnover of up to Rs. 12 lahks, while State License is for medium-sized businesses with a turnover between Rs. 12 lahks and Rs. 20 crores. Central License is for large-scale businesses with a turnover exceeding Rs. 20 crores.
Conclusion
Don’t let the complexities of FSSAI registration hinder your business growth. Take action today and partner with Vakilsearch to obtain your FSSAI license hassle-free.
Want to unlock the doors to success for your homemade food business?
Contact us today to get started on your FSSAI registration journey!
FAQs
Is it mandatory to get an FSSAI license for small businesses?
Yes, it is mandatory for all food businesses, including small businesses, to obtain an FSSAI license in India. This applies to manufacturers, traders, restaurants, and other food businesses.
What is the importance of FSSAI in the food industry?
The FSSAI (Food Safety and Standards Authority of India) plays a crucial role in ensuring food safety and quality in the food industry. It sets strict standards for food safety and regularly inspects food businesses to ensure compliance. The FSSAI license helps build consumer trust, reduces the risk of foodborne illnesses, and protects the health of consumers
Is FSSAI registration required for homemade food?
Yes, FSSAI registration is required for homemade food businesses as well. Whether it is a small-scale food business or a larger one, FSSAI registration is mandatory for all food businesses.
Why is a food license necessary?
A food license, such as the FSSAI license, is necessary to ensure compliance with food safety and quality standards. It helps businesses avoid legal action and penalties for non-compliance. Additionally, a food license builds consumer trust, protects public health, and promotes food safety in the industry
Is GST compulsory for food licenses?
No, GST (Goods and Services Tax) registration is only mandatory for businesses with an FSSAI license if their annual turnover exceeds the threshold limit set by the government.
Who is exempted from the FSSAI license?
FSSAI License is not required for those engaged in manufacturing or trading of utensils or packaging material as these are not covered under the definition of food as per Section 3(n) of FSS Act, 2006.
What is the difference between a food license and FSSAI?
The term food license is a general term that refers to the license or registration required for operating a food business. On the other hand, FSSAI (Food Safety and Standards Authority of India) is the regulatory body responsible for setting food safety and quality standards in India.
