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Is The FSSAI License Necessary For An Industrial Canteen?

Is The FSSAI License Necessary For An Industrial Canteen? Yes, it is, since all industrial canteen falls under the definition of a food business. The draft to amend the Food Safety and Standards (Licensing and Registration of Food Business) Regulations, 2011, was released on 17 November 2020. Petty Food Business Operators need to submit an annual declaration (returns) by 31 May for the previous financial year by. Failing to do so shall attract a penalty of ₹100 per day for delay. The maximum penalty that can be levied shall not exceed 5 times the annual fees.


An industrial canteen requires FSSAI sanction as any business which falls in the ‘Food Business’ category under section 3 (1)(n) of the Food Safety & Standard Act 2006 requires an FSSAI license/ certificate to function legally in India.

What is an FSSAI License?

The Food Safety and Standards Authority of India (FSSAI) operates the Food Safety and Standards Act of 2006. It is India’s primary governing body in the food sector. FSSAI functions as a decentralized government agency that has cohorts in every state.

The local cohorts of FSSAI are the bodies that work with local municipalities to ensure food safety by structurally conducting food inspections, health inspections and restaurant inspections.

FSSAI approval certifies that whatever products your business offers are safe for human consumption. Additionally, the certificates and licenses signify that an FBO upholds food safety, safety for health and the general well-being of society.

Who Needs an FSSAI Certificate / License?

Any business, whether micro, small, medium or large-scale entity – serving consumable goods such as food and items will be required to get FSSAI approval.  

Food and Plight of Workers

Industrial workers in India face numerous challenges. Poor nutrition and long work hours are two of these issues. Similarly, while the situation regarding long working hours and tedious labour is gradually improving, industrial workers such as technicians, foremen, mechanics, and assembly line workers are always at risk of malnutrition and a lack of healthy nutrition.

These workers’ inability to acquire proper nutrition to support their bodies is solely due to low wages. To make matters worse, most factories and industrial units have shabby canteens that serve barely nutritious food.

Role of FSSAI in Industrial Canteens

Industrial Canteens are in-factory units that prepare and cook food for workers. Industrial canteens and their kitchens, like factories and assembly lines, are filthy, shabby, and ill-equipped. Furthermore, under these conditions, even the food served is barely edible and frequently lacks the nutrition profile it should have. This is partly because no one cared about the welfare and development of industrial workers.

In India, labour groups have long since been campaigning against this atrocity. However, with the formation of the FSSAI in 2006, it became mandatory to have industrial canteens that meet basic health and safety standards and can ensure food safety and health safety of their food. 

Today, it has become mandatory for every business which falls in the category of a food business to meet many several safety criteria:

These are as follows:

  1. Food Safety Standards should be followed and met
  2. Health Safety Standards should be followed and met
  3. Additionally, industrial units which have their canteen will be subject to frequent inspections by a Food Safety Inspector

You’ve probably learned everything to know about FSSAI and its linked industrial canteens, but if you’re still wondering if your business requires a certificate or licence.

Let us take a look.

Kinds of Licenses under FSSAI

  1. FSSAI Basic Registration 
  2. Food License
  3. FSSAI Central License

FSSAI Certificate

This is the perfect certification for small to medium-sized businesses in the food industry. FSSAI certificate is granted to those businesses which pass an audit and food safety inspection conducted by a Food Safety Inspector. To get this license, your business must have a turnover of fewer than ₹12 Lakhs.

FSSAI State License 

This is the standard license awarded to businesses that have passed their audit and food safety inspection conducted by a Food Safety Inspector. To get this licence, businesses must have a turnover between ₹ 12 Lakhs and ₹ 20 Crore.

FSSAI Central License 

This is a top-tier license provided by FSSAI to companies that have passed their audit and inspection and have also been approved for safety standards by a food and health inspection service agency. This license is mandatory for businesses with a turnover of more than ₹ 20 crores and operates pan India.

Which FSSAI Type is Best for You?

If you are seeking FSSAI approval for your Industrial canteen, the best option would be to opt for FSSAI Certificate. 

FSSAI License and Central License are perfect for FMCG goods and Food manufacturing companies that cater to a wider audience throughout the country. 

Further, for a single industrial canteen, a standard FSSAI Certification is more than enough to ensure food safety and the health safety of your workers and staff. This is because the other two licenses are ideal for food businesses, restaurants, manufacturers, etc.

Our team at Vakilsearch can also assist you with more details, all you need to do is book a free consultation with us at the earliest!

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