Under the food safety laws of India, certain compliances for the food business owners have been given. One of the most important is FSSAI License Registration. There are three types of food license that have been given under the food safety laws of India. These licenses have been divided into three categories which includes basic licensing which is also known as the regular license as well, state licensing and central licensing. 

The will particularly deal with the FSSAI State License. Basically the applicability has been decided on the basis of the turnover of the business but when it comes to central FSSAI License it can be decided on the basis of the types of business as well. In order to get thorough knowledge regarding the state food license. 

Key Functions of the Food Safety Standard Authority of India

The major functions of FSSAI has been mentioned in the table given below:

Benefits of FSSAI State License in India 

The benefits of obtaining the state license from FSSAI includes the following: 

• Brand recognition has been enhanced with the help of this license, which helps in getting profit to the business 
• Boosting business credibility which is one of the key ingredient for the success of the business 
• Attracts customers and build trust among them so that they can become the regular customer of the business and business can achieve the success in the market
• Legal stability for registered businesses comes with this licensing
• Promoting best practices for food safety in the market which helps the business to become reliable among the customers as well as investors 
• Simplifying supply chain management in the business industry of the food and other related products 
• Consumer trust and loyalty has been gained through this license because it makes them believe that they are consuming good quality food 
• Network market has been accessed through this licensing 
• In order to get the international recognition you need to take this license because without this you cannot enter into the international food industry. 
• Continuous improvement and adaptation has been come up with this license 
• Makes the food industry free from degraded food 
• Adulteration of the food has been controlled through licensing 
• Proper hygiene has been maintained 
• Makes the business secure against those fines and penalties which are there if any food business not having this license 

Types of FSSAI License in India

The different types of FSSAI license in India include the following:

1. FSSAI Central License

• Issued by the central government.
• Mandatory for Food Business Operators operating in more than one state.
• Applicable to FBOs such as exporters, importers, producers and operators.
• Meant for bigger units with annual turnover exceeding Rs. 20 crores.

2. FSSAI State License:

• Issued by the state government.
• Required for FBOs operating within a single state.
• Suitable for SMEs, retail chains, etc.
• Primarily granted to units with an annual turnover exceeding Rs. 12 lakhs and below Rs. 20 crores.

3. FSSAI Basic Registration:

• Issued by the state government.
• Applicable when the annual turnover is under Rs. 12 lakhs.
• Designed for FBOs like small-scale producers, dealers, hauliers, distributors, retailers, etc., meeting minimum specifications.
• Represents a simplified registration process for smaller businesses.

Key Features of FSSAI State License

The major features of the state license issued by FSSAI includes:

• Legal Compliance and Penalties

There are various kinds of compliances prescribed under the FSS Act of 2006 and ignorance of which can lead to fines and penalties. One such compliance is legal licensing. Hence this line provides security against the various fines and penalties given under the food safety laws of India. 

• One-time Expense

It is the initial requirement of the business. It's not like every month you have to renew this license. At a time you can take this license for the next five years. Hence it can be said that it is a one time expense in the initial stage of the business. By complying with this you can make your business trustworthy and reliable. 

• Mandatory for All Food Operators

FSSAI Licensing is not an option, it is mandatory to take this license because ignorance can result in significant losses due to fines and penalties. Hence to make your business free from such kinds of risks make sure you will comply with the FSS Act and regulations carefully. Directory things can be ignored but you cannot ignore the mandatory provisions of the law.

• Varied Requirements Based on Business Type

The necessity for FSSAI licensing or registration varies based on the type and nature of operations of a food business. Businesses need to check the requirements under the FSS Act of 2006 as well as the Food Safety and Standards Regulations 2011 which also talks about the FSSAI Licensing. 

Entities Requiring a State FSSAI License

Given below are the businesses who require a State FSSAI license:

• Businesses Operating in a Single State with Annual Turnover:

Businesses operating within a single state with an annual turnover exceeding Rs 12 lakhs but less than Rs 20 Crores are mandated to obtain a State FSSAI License.

• Facilities Dealing with Proprietary Foods:

Any facility dealing with proprietary foods is required to obtain a State FSSAI License, ensuring compliance with food safety standards.

• Vegetable Oil Production & Processing Facility:

Vegetable oil production and processing facilities utilising solvent extraction and meeting the specified turnover criteria fall under the ambit of State FSSAI Licencing.

• Hotels with 4-Star Rating or Below:

Hotels with a rating of 4 stars or below are obligated to secure a State FSSAI License to ensure the safety and quality of the food they serve.

• Dairy Products Facilities and Milk Chilling Units:

Facilities dealing with dairy products, including Milk Chilling Units with a production capacity ranging from 500 to 50,000 litres, are required to obtain a State FSSAI License.

• Storage Facilities with Overall Capacity Below 50,000 Metric Tons:

Storage facilities with an overall capacity below 50,000 metric tons annually fall within the scope of obtaining a State FSSAI License.

• Slaughterhouses with Specific Capacities:

Slaughterhouses with a capacity exceeding 2 and up to 50 large animals or a handling capacity of more than 10 and up to 150 small animals or a per-day capacity of more than fifty and up to thousand poultry birds are mandated to have a State FSSAI License.

• Food Processing Facilities, Including Re-packing Units:

All food processing facilities, which includes repacking units, with per-day capacity of not less than 100 kg per litre and up to 2 metric tons are required to obtain a State FSSAI License to ensure adherence to food safety regulations.

Essential Documents for State FSSAI License Application

The basic set of documents required for state FSSAI license are:

• Details of Key Management Personnel:

Provide comprehensive details of key management personnel, including Directors, Partners, Proprietors and Executive Members of the Society. Include real addresses and contact particulars for each individual.

• Passport-sized Photos:

Submit passport-sized photographs of the individual seeking the license.

• Identification and Address Proof:

Furnish valid identification and address proof for the individual applying for the license.

• Applicant’s PAN Card:

Include a copy of the PAN card for the applicant.

• Property Documents:

If the place of business is owned by the applicant, submit a copy of the property documents.

• Rent Agreement and NOC (In Case of Rented Property):

If the business premises are rented, provide a copy of the rent agreement and a No Objection Certificate granted by the landlord.

• Details of Raw Material Suppliers:

Include particulars regarding raw material suppliers for the proposed business.

• Form B (Duly Completed and Authenticated):

Submit Form B duly completed and authenticated by the applicant.

• List of Machinery Installed:

Provide a detailed list of machinery installed at the facility.

• NOC from Local Municipality:

Include a No Objection Certificate obtained from the local Municipality.

• Particulars of Food Category and Proposed Food Articles:

Specify the food category and provide details of proposed articles of food to be produced at the plant.

• Import Export Code (IEC) from Directorate General of Foreign Trade:

Include the Import Export Code issued by the Directorate General of Foreign Trade.

• Form IX:

Submit Form IX as part of the application process.

• Authorisation Letter:

Enclose an authorisation letter providing the name and address of the responsible individual.

• Food Safety Management System (FSMS):

Present details of the Food Safety Management System in place at the facility.

Ensuring the completeness and accuracy of these fundamental documents is essential for a successful application for a State FSSAI License.

FSSAI State License Fee Structure

To obtain an FSSAI State License, applicants are required to pay the prescribed fees, which can be submitted through the following methods:

• Demand Draft (DD)
• Treasury Challan
• Cash

The fees vary based on the production capacity of the food business. The following table outlines the license fees per year for different categories:

Process for Obtaining FSSAI State License form Authorities

Obtaining an FSSAI State License involves several important steps, ensuring compliance with food safety regulations and the smooth functioning of the business. The steps in this process are:

Step 1: Document Preparation and Application Filing

• Assemble all necessary documents mentioned earlier.
• File the application through Form B, providing comprehensive details about the business.

Step 2: Submission via FOSCOS Online Portal

• Submit the application form through the Food Safety Compliance System (FOSCOS) online portal.
• Complete the filing process by remitting the standard fees.

Step 3: Application Scrutiny by FSSAI Officials

• FSSAI officials conduct a thorough examination of the submitted application and supporting documents.

Step 4: On-Site Inspection

• If deemed necessary, FSSAI officials may conduct an on-site inspection of the business premises to assess compliance with safety standards.

Step 5: Granting of State FSSAI License

• Upon successful scrutiny and, if applicable, a satisfactory on-site inspection, the licensing authority grants the State FSSAI License.

Step 6: Commencement of Business Operations

• With the obtained license, the business owner is authorized to commence their food-related operations.
• The license must be prominently displayed at the business premises as a regulatory requirement.

Validity and Renewal of FSSAI State License

As per FSSAI directive of January 11, 2023, the validity period for a State Food License is now for one year from the date of issue.

1. Conditions for Auto Renewal

• The existing license information remains unchanged.
• The license to be renewed has not been canceled or suspended.
• Manufacturers and importers must have filed their annual returns before applying for renewal.

2. Renewal Window

The renewal application window commences one hundred and eighty days before the license's expiration date and closes one hundred and eighty days later.

3. Inspection Requirement

• If considered necessary, designated officers may order an examination before renewal, with written justification.
• No inspection is necessary if the Food Business Operator holds a valid certificate from a Food Authority-approved agency, an accredited food safety auditor, or another institution notified by FSSAI.

4. Penalties for Late Renewal

For renewal applications submitted within 180 days following the expiration of the license, penalties will be levied according to the following structure:

• First 90 Days After Expiry

The penalty amount will be three times the prevailing annual license fee.

• 91st Day to 180th Day After Expiry

An additional penalty, amounting to two times the existing annual license fee, will be imposed during this period.

Consequently, the cumulative penalty during this phase will be five times the original license fee.

5. Expiry Beyond 180 Days

• No renewal application can be filed after 180 days from the date on which the license originally expired.
• FBOs are not allowed to conduct any food business between the original expiry date and the issuance of the renewed license.
• Any food business conducted in this period is subject to penalties and punishment as per Section 63 of the FSS Act, 2006.

Penalties for Non-Compliance with FSSAI Norms in India

In a situation where there is non-compliance with the FSS Authority of India regulations, Food Business Operators in India may face severe penalties as stipulated in the FSS Act of 2006. FSSAI officials have the authority to conduct surprise audits of business premises without prior notification to the owner. The table below provides the specific penalties imposed for various violations: