Can we start a business without FSSAI?

No. To ensure safe and wholesome food for human consumption, Section 31(1) of the Food Safety and Standards Act, 2006, requires licenses from FSSAI for every food business set up. According to the size and nature of the company, FSSAI registration or Licence could be required. This article will examine the consequences of starting a business without an FSSAI license under Food Safety Norms.

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Are you planning to start a business without FSSAI?

If you run a food business and do not possess a license from FSSAI, you need to know that it is essential as this license conveys that food products are high quality. And, you cannot prove to customers that your food is safe from unhygienic processing, exposure to extreme temperature and air, and improper collection. Log onto IndiaFilings to learn more about FSSAI Licensing and the relevant compliances. Our team of FSSAI experts will guide you throughout the process.

Benefits of Procuring FSSAI Registration/ License

Obtaining an FSSAI license can provide the food business with the following benefits:

Legal benefit
Ensure food safety
Build goodwill
Create consumer awareness
It helps regulate, manufacture, store, distribute, and sell imported food.
It becomes easy to obtain funds from investors when an entrepreneur has an FSSAI license.
FSSAI logos on food products ensure the quality of the products to the customers.
The registration number displayed on the food premises indicates that the premises comply with hygiene and quality standards.

Consequences of not obtaining an FSSAI license/registration for businesses

Non-Availability of FSSAI Logo

All Food Business Operators need to obtain a 14-digit FSSAI License Number and print it on all the food products they own. As a symbol that informs people that the food product is hygienic to consume and licensed by the FSSAI, the FSSAI Logo plays a significant role.

Trouble obtaining credit

Investors, banks, or lenders will check your FSSIA licenses before investing or lending. Businesses planning to scale must apply for the permit based on their projected sales/capacity.

Risk Of Losing Credibility In The Market

Not renewing the FSSAI license could be a costly trade-off for FBO since it is directly associated with the reputation and credibility of the business. You might save some extra bucks annually by not renewing the license, but this could drastically impact your business, especially in the long run.

Risking disqualification from food-tenders

Not possessing an FSSAI License/registration may also make it harder for a business owner to apply to corporate events, apply for tenders or make their way to a more extensive set-up, as most of these opportunities will stipulate the requirement of a valid License.

FSSAI Penalty and Offenses for carrying out a business without an FSSAI license

According to Section 63 of the Food Safety and Standards Act of 2006, If any FBO (except the persons exempted from licensing under sub-section (2) of section 31 of this Act), who is required to obtain a license, manufacturers, sells, stores or distributes or imports any of food without a registration/license, shall be punishable with imprisonment for six months and also with a fine of 5 lakh rupees. For more details on FSSAI Penalty and Offenses, refer to our article.

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Frequently Asked Questions

Common questions about FSSAI License Requirements for Food Businesses in India.

An FSSAI (Food Safety and Standards Authority of India) license is a mandatory requirement for any food business in India. It certifies that the food products manufactured, stored, distributed, or sold by the business comply with food safety and hygiene standards set by the FSSAI. Obtaining this license ensures legal compliance, builds consumer trust, and enables businesses to display the FSSAI logo on their products.

Operating a food business without an FSSAI license can lead to severe consequences. Firstly, businesses cannot display the FSSAI logo on their products, which can impact consumer trust. Secondly, it can become challenging to obtain credit or funding from investors and lenders. Thirdly, businesses risk losing credibility in the market and may be disqualified from participating in corporate events or tenders. Finally, Section 63 of the Food Safety and Standards Act, 2006, imposes a penalty of imprisonment up to six months and a fine of up to Rs. 5 lakhs for non-compliance.

An FSSAI license provides several benefits to a food business, including legal compliance, food safety assurance, consumer trust, and credibility. It allows businesses to display the FSSAI logo, which informs customers about the product's quality and hygiene standards. Additionally, having an FSSAI license makes it easier to obtain funding from investors and lenders, as it demonstrates adherence to regulatory requirements.

Yes, Section 31(1) of the Food Safety and Standards Act, 2006, requires all food businesses in India to obtain an FSSAI license or registration, regardless of their size or nature. The specific type of license required (registration or license) depends on the business's size and operations.

Food businesses can apply for an FSSAI license through various channels, including online portals like IndiaFilings, which provide expert guidance and assistance throughout the registration process. The application process typically involves submitting relevant documents, paying prescribed fees, and complying with the necessary requirements specified by the FSSAI.

FSSAI licenses are typically valid for a specific period, usually ranging from 1 to 5 years, depending on the type of license and the business's nature. Businesses must renew their FSSAI licenses before they expire to continue operating legally. Failure to renew the license can lead to penalties and legal consequences.

Yes, the Food Safety and Standards Act, 2006, provides exemptions for certain types of food businesses or individuals from obtaining an FSSAI license. These exemptions are specified in sub-section (2) of section 31 of the Act and may include small-scale operations, petty food manufacturers, or those dealing with certain types of food products.

When applying for an FSSAI license, businesses typically need to provide information such as the type of food business, details of the manufacturing or processing unit, product details, and information about the proprietor or company. Additionally, supporting documents like proof of identity, address proof, and other relevant documents may be required.

Yes, the FSSAI has the authority to cancel or revoke a license under certain circumstances, such as non-compliance with food safety standards, providing false or misleading information, or violating the conditions of the license. Businesses must ensure they adhere to all FSSAI regulations and maintain proper food safety practices to avoid license cancellation or revocation.

For detailed information about FSSAI licensing, compliance requirements, and the application process, businesses can visit the official FSSAI website (www.fssai.gov.in) or consult with FSSAI experts or service providers like IndiaFilings. These resources can provide comprehensive guidance on navigating the licensing process and ensuring compliance with food safety norms.