Introduction
If you are setting up any food business in India — whether it is a small household kitchen or a huge food processing facility — the very first legal step you need to take is applying for an FSSAI license.
FSSAI, the Food Safety and Standards Authority of India, dictates food safety regulations throughout the country. According to Indian law, no company or person can open a food business unless registered or obtaining a license from FSSAI.
But this is where most business owners get hung up: there are three kinds of FSSAI license, and choosing the correct one is crucial. Pick the wrong one, and your application will be denied or, worse, you’ll be in trouble with fines as well as lawsuits.
In this article, I will walk you through what type of license is ideal for your business, why we need to make the decision, and also how to comply from day one.
Why Do We Need an FSSAI License?
An FSSAI license is not just a legal must; it’s also an authenticity badge. It can be thought of as the quality mark of your food business. When you’re selling homemade food to a small circle of consumers or packaged food throughout India, an FSSAI license assures you that you’re running your business within the safety parameters defined by the Indian government.
Above all else, it gives people confidence. People are wiser nowadays. If they spot the FSSAI number or stamp on packaging, restaurant walls, or even order apps, they realize food has been through some test of quality and hygiene.
Without this license, your business will suffer a huge setback. Fines for non-compliance are as much as ₹5 lakhs, and in extreme situations, even your business could be closed down by the authorities.
The Three FSSAI License Types You Must Understand
Now let us dispel the mystery surrounding the three FSSAI license types food business operators can seek.
1. FSSAI Basic Registration – For Small-Scale Units and Home Businesses
If you’re beginning small — perhaps operating a tiffin service, home bakery, or cloud kitchen from home — you will need the Basic Registration.
This registration is for small businesses with less than ₹12 lakhs turnover per year. It’s the least complicated, takes fewer documents, and should usually take just a few working days.
For instance, if you are a home cook operating on the streets with pickles, cakes, and snacks in the locality or through WhatsApp groups and your total profit from the activity is below ₹12 lakhs per year, then you need this one.
This kind of registration is most appropriate for:
- Street food shops
- Small-food processing units
- Cottage industry
It’s affordable, easy to renew, and a perfect starting point for anyone testing the waters in the food industry. However, keep in mind that if your business grows beyond ₹12 lakhs in annual turnover, you’ll have to upgrade to a higher license.
2. FSSAI State License – For Mid-Level Food Businesses Operating Within One State
Whenever your food enterprise becomes big enough and your turnover during a period of one year crosses ₹12 lakhs but doesn’t reach ₹20 crores, then you would need to obtain a State License.
This State License applies to medium-sized businesses in a single state. You may open a successful restaurant, a café business, a mid-scale catering business, or even produce packaged food for consumption locally — in all such cases, the State License is necessary.
In contrast to Basic Registration, the license requires a bit more paperwork. Site visits can also be done by state governments. It takes a bit longer, but your business will be authenticated to a higher extent.
Suppose you’re running a chain of three restaurants within the city of Mumbai and your combined turnover is around ₹2 crores annually. Since your operation is limited to Maharashtra and your revenue exceeds ₹12 lakhs, the State License is mandatory.
Even businesses like small food warehouses, small-scale dairy units, or units supplying food to schools and offices typically fall under this category.
If you are doing business only within your state and your turnover is high but under ₹20 crores, this license is what you must apply for.
3. FSSAI Central License – For Large Businesses or Businesses with Interstate/Export Operations
If your turnover is more than ₹20 crores a year or your company is running in more than one state, you will have to obtain a Central License from the FSSAI headquarters.
This license is for:
- Large food processing and manufacturing companies
- Food importers and exporters
- Online aggregators such as Swiggy, Zomato, or Amazon food sellers
- Companies trading in supply of food products state-wise
- Food units supplying to defense services or government departments
Obtaining a Central License is a time-consuming document process, strict inspection procedure, and longer waiting time than the other two licenses. However, it is actually worthwhile if your food business is of large scale or is to serve customers at state or foreign borders.
Suppose you are a brand producing ready-to-eat protein bars in Gujarat and selling them across the country on Amazon and even exporting them to the UAE. That’s a business scenario which requires a Central License, as you’re operating across states and international markets.
Even if your turnover is not yet ₹20 crores, but you’re exporting or supplying food out of your state, you’ll be legally bound to obtain a Central License.
Documents Needed for FSSAI Licenses
Although documents needed vary based on the license category you’re seeking, some are required across the board.
For Basic Registration, you’ll typically need:
- Photo ID (Aadhaar or PAN card)
- Passport size photograph
- Document showing business address
For State and Central Licenses, a few more documents are:
- Certificate of business registration
- List of food products or categories you will handle
- Plan of your food manufacturing or storage facility
- List of machinery and equipment used
- Water analysis reports (for factory premises)
- NOC from local government or municipal license
- Import-Export Code (IEC) for export companies
All these are conditions in making your operations be in compliance with food safety regulations and be capable of passing routine inspections.
Mistakes to Avoid While Seeking FSSAI
Most of the companies err on the side of selecting the wrong license based on guesswork rather than facts. This is followed by rejection of the application or future fines.
The other most common error is registering under the Basic Registration without thinking of future business expansion. As soon as your turnover goes up, you are statutorily obliged to upgrade your license. Operating under the Basic Registration when you qualify for a State or Central License is an extremely serious offense.
Not submitting accurate or complete documents is another kind of trouble most people encounter. Partial or faulty business activity description or product list can hold up your application. One needs to fully comprehend the nature of your business and declare it properly in the form.
Avoiding the renewal of your license is another mistake. Every FSSAI license has an end date, and failing to renew in time will result in fines and disruptions to your business.
Need Assistance Choosing the Right License? Legal Dalal is Here to Support You
We at LEGAL DALAL know food entrepreneurs like to spend their time on customers, recipes, and expansion — and not on forms. That is why our expert team takes care of all your FSSAI license on your behalf.
We assist you:
- In comprehending which license suits your business the best
- In gathering and organizing all documents
- In filing the application in the proper manner within time
- In responding to any queries from the FSSAI department
- Ensure timely renewals to avoid penalties
Whether you’re starting small or going national, we’ll ensure your FSSAI license is valid, compliant, and future-ready.
Conclusion
Getting the correct FSSAI license is not just about ticking a legal checkbox — it’s about laying a strong foundation for your food business.
A home kitchen can do with a Basic Registration, while a restaurant or mid-sized food company will require a State License. If your plans are bigger, spanning several states or exports, then the Central License is the one to target.
Getting the right license safeguards your company, builds customer confidence, and allows for easy growth.
