Indians love delicious food. Delectable food requires cooking oil. If you're an aspiring entrepreneur and want to start a new business, the cooking oil business is perfect for you. To start a cooking oil business, you need the zeal to learn about it and the acumen to establish your brand.
Edible oil is counted among essential goods. Indian kitchens consume edible oil more than most other countries. Almost everything we consume contains edible oil in some volume. And as it goes with most essential supplies, the demand is always inelastic. In other words, demand is not affected much by changes in the economic environment. So the edible oil business is a steady and stable business in the least, if not lucrative. So what does it take to start an edible oil business in India? Let us take a look at the details.
FSSAI Registration
As food, edible oil falls under the food category. Food Business Operators (FBOs) manufacture, process, and sell edible oils. Under the Food Safety and Standards Act 2006, all FBOs must obtain a license from the Food Safety and Standards Authority of India (FSSAI). FSSAI is an autonomous body under the Ministry of Health & Family Welfare. This certification ensures that food products undergo thorough quality checks to prevent food adulteration and the sale of substandard products. An FBO license usually contains a unique fourteen-digit number as its identification number.
There are three kinds of FSSAI registrations. They are as follows:
FSSAI Basic Registration
FBOs with a turnover of less than ₹12 lakh p.a. Must obtain basic FSSAI registration. Form A is the FSSAI registration form the applicant must fill out to obtain the basic FSSAI registration.
FSSAI State License
FBOs have a turnover of more than ₹12 lakh p.a and less than ₹20 crore p.a. They Must obtain the FSSAI state license. Form B is the FSSAI registration form the applicant must fill out to get an FSSAI state license.
FSSAI Central Licence
FBOs having a turnover of more than ₹20 crore p.a. Must obtain the FSSAI central license. The FSSAI registration form the applicant must fill out to obtain an FSSAI central license is Form B.
The Documents Required for Basic FSSAI Are as Follows
- Photo identity proof of the FBO.
- Address proof of business.
- Proof of possession of business premises.
- Business constitution certificate.
- Nature of business details.
- List of food products manufactured or processed.
Additionally, Since We Are Specifically Detailing the Procedure for Fssai in Tamil Nadu, the Documents Required for the State FSSAI License Are as Follows
- Form B is duly filled and signed by the applicant.
- Address proof of business.
- The layout of the processing unit.
- Proof of possession of business premises.
- Business constitution certificate.
- Name, record, horsepower used, and installed capacity of machinery and equipment with the number.
- List and contact details of directors, partners, or executive members of society or trust.
- ID proof of the proprietor, partners, directors, or authorised signatory
- Analysis report of water used in food from a recognised or public health laboratory
- List of food items desired to be processed or manufactured
- An authority letter from the manufacturer nominated the responsible person with name and address details
- NOC from the manufacturer
- Food safety management system plan/certificate.
The Documents Required for Obtaining a Central FSSAI License Are
- Form B duly completed and signed
- Plan of the processing unit showing the dimensions and operation-wise area allocation
- List of Directors/ Partners/ Proprietor with address, contact details, and photo ID
- Name and inventory of equipment and machinery used with the number and installed capacity
- An authority letter from the manufacturer nominated a responsible person’s name and address
- Analysis report of water to be used in the process to confirm the portability
- Source of raw material for milk, meat, etc
- Recall plan wherever applicable
- Ministry of Commerce Certificate for 100% EOU
- NOC/PA document issued by FSSAI
- IE code document issued by DGFT
- Form IX
- Certificate from Ministry of Tourism
- Supporting document for proof of turnover and transportation
- Declaration form
The Procedure for Getting an FSSAI Certification Is as Follows
- Visit the FoSCoS portal.
- Click on the option of ‘Apply for Licence / Registration’ on the home page.
- Select the state as ‘Tamil Nadu’ from the dropdown list.
- Click on the applicable option – ‘Manufacturer’, ‘Trade/Retail’, or ‘Food Services’ as per the nature of the business.
- Select the applicable turnover or production capacity option. Click on the ‘Proceed’ button.
- Click on the option of – ‘Click here to apply for registration for all businesses’ or the ‘Click here to apply for State License to all companies on the next page.
- Fill in Form A or B details, upload the documents, and make payment. Click on the ‘Submit’ button.
- The FSSAI registration application form will be submitted, and the FSSAI authorities will inspect it. They will issue the FSSAI Basic Registration or FSSAI State License when the applicant meets all the requirements of the FSS Act.
In Addition to the Above Procedure, the FBO Must Give Meet the Following Conditions as Well
- Access for licensing authorities to the business premises for inspection purposes.
- Inform the concerned authorities of any changes in operations.
- The FBO can only process the food products in their units, as mentioned in the FSSAI registration/license.
- The FBO must maintain hygiene and sanitation standards per the licensing authorities’ prescribed standards.
- The FBO must use standardized raw materials with optimum quality.
- The business premises of the FBO must be installed with a clean-in-place system for cleaning equipment and machines.
- FBOs selling cooked food must display a notice board of the nature of the articles sold.
- The FBO must not engage in the distribution or sale or offer for dispatch, sale, or delivery of edible oil that is not marked, packed, or labeled in the prescribed manner.
The fee for Basic FSSAI Registration in Tamil Nadu is ₹ 100.
The fees for a State FSSAI License in Tamil Nadu depend on the size of the business. They are as follows:
- Manufacturers with a production capacity above 1MT per day or 10,001 to 50,000 liters of milk per day – ₹ 5,000
- Manufacturers with a production capacity below 1 MT per day or 501 to 10,000 liters of milk per day – ₹ 3,000
- Three and four-star hotels – ₹ 5,000
- Food service providers, including canteens (schools, offices, colleges, institutions), clubs, banquet halls with food catering arrangements, restaurants/boarding houses, caterers, food vendors, etc. – ₹ 2,000
- Other food business operators – ₹2,000
- Distributors, retailers, and wholesalers – ₹2,000.
BIS Registration
The Bureau of Indian Standards is known as the BIS. BIS certification ensures the quality, reliability, and safety of any product. The nature of the business determines the requirements. Let’s examine those details, specifically for Tamil Nadu’s edible oil businesses.
Documents Required for BIS Certification
There is a list of documents that need to be kept handy while applying for BIS certifications. The list of documents is as follows:
- Name and address proof of office and factory
- Documents showing the establishment of the manufacturing unit, such as an incorporation certificate or registration certificate, a memorandum of association, etc.
- MSME/SSI certificate, if applicable
- Manufacturing process flow covering all processes of manufacture (from raw material to finished product stage)
- Manufacturing machinery list along with the machinery details
- Details of outsourcing of manufacturing operation, if applicable
- A detailed list of testing facilities and testing equipment list
- Copies of valid calibration certificates of testing equipment
- Third-party laboratory test report as per Indian Standards, if applicable
- Layout plan of the factory premises and location plan of the factory
- In-house or independent test report, if applicable
- In case the application is signed by the authorized signatory, the authorization letter from the CEO in the authorized signatory’s name
- In the case of a foreign manufacturer or overseas applicant, the nomination details of the Indian agent and the nomination form
Procedure for BIS Certification
The BIS certification process generally involves the licensing process and surveillance process. The following steps are involved in the licensing process:
- First, The manufacturer must fill out and submit the BIS registration application
- Next, a BIS officer will be appointed to pay a visit to the factory for a preliminary inspection
- After the inspection, the product samples will be tested
- Once this is done, the BIS officer will evaluate the results of the tests
- Once the steps above are completed, the inspecting officer will conduct the surveillance process to conduct a complete factory survey. The following steps are involved in the surveillance process:
- Visit the factory to testify the test results by the inspecting officer
- The inspecting officer will send the samples to the independent labs
- The test report will give feedback or brief the complaint on the investigation
- The performance review report will be prepared
- Once the report is reviewed, the BIS license is granted.
Conclusion on How To Start An Edible Oil Business In Tamil Nadu
It is evident from the above that registering certain businesses requires much more formality than starting a general business. Therefore, it is best to seek the guidance of an expert with experience registering businesses. Get in touch with us Vakilsearch if you need further assistance regarding any other type of registration or legal guidance. Our goal is to provide you with the best support for your needs and requirements.
