Friday, September 20, 2024
Friday, September 20, 2024

Can we start a business without FSSAI?

by Swati Raghuwanshi
Business without FSSAI

As per the Food Safety and Standards Act of 2006, it is mandatory to get FSSAI License Registration for those businesses who are in the food industry. Whether one is having a small food business, mid size food business or a giant food business, this license is applicable on all of them. If anybody is found doing food business without FSSAI, he or she will need to pay heavy fines and penalties under the section 63 of the food safety law. Under the section 63 of the FSS Act of 2006, the fines and penalties are given and these fines and penalties are so hefty that they can lead to the collapse of your business. Hence it is suggested to all those business owners who are in the food industry, must obtain this license. Don’t take any kind of risk by doing any type of food business without FSSAI License. 

What is FSSAI License?

FSSAI License is an authorization granted to food business owners to operate in the Indian market following their submission of the necessary paperwork and data to the FSSAI. The FSS Act of 2006 has been used to provide this license. All people operating food businesses in the market are required by law to obtain an FSSAI license Registration in accordance with food safety regulations. Ensuring food safety is the aim of this license. If one is doing food business without FSSAI license he or she may have to pay heavy fines and penalties, hence one must obtain this food license. 

Business on Which FSSAI is Applicable

Some of the food businesses without FSSAI license which are not allowed to work in the Indian market are given below. Always keep in mind this list is not exhaustive in nature. There may be certain other food businesses which fall under this list.

  • Restaurants and eateries of different kinds 
  • Cafes, canteens, and food stalls, serving cooked or prepared food items.
  • Food manufacturers of different type of food products 
  • Packaged snacks seller also need to obtain this license 
  • Processed food seller needs to take this license  
  • Confectioneries and beverages businesses 
  • Food wholesale as well as food retailers required to have this license 
  • Grocery stores and supermarkets must hold this license 
  • Online food sellers are mandatorily required to get this food license 
  • Food importers and exporters need to take Central FSSAI License Registration 
  • Food storage and food transportation business  
  • Catering services for events, parties, or corporate gatherings.
  • Food packaging units should obtain food license 
  • Food vendors and hawkers, although they are working on a smaller level needs to take this license 
  • Dairy and milk product producers obtain the license as per their production capacity 
  • Meat and poultry suppliers also need to take this license 
  • Bakeries and confectioneries
  • Food service establishments

Are you Thinking About to Start your Business Without FSSAI?

As per section 63 of the Food Safety and Standards Act that came into force in the year of 2006, it is compulsory or we can say mandatory for all the food business owners to obtain food license as per their business requirement. Anyone, except those exempted by Section 31(2) of this Act, who conducts a food business without the required license is subject to punishment. Hence it is suggested to all the food business owners to obtain a food license instead of doing business without FSSAI Licence. 

Punishment for Carrying out a Business Without a FSSAI Licence

If any food business is caught working without having a proper food license, a heavy penalty can be levied on it. As per section 63 of the FSS Act of 2006 any food business owner involved in manufacturing, selling, storing, distributing, or importing any food item without the necessary license may have to face six month imprisonment or fine which may extend up to Rs. 5 lakhs. This amount is sufficient to collapse a food business. Hence don’t even think about doing business without FSSAI Licence. 

Key Consequences of not Obtaining FSSAI License 

Non compliance of section 63 of the Food Safety and Standards Act of 2006 has many significant consequences. Some of the key consequences of running a food business without FSSAI Licence are mentioned below: 

  • Reliability and credibility of business is decreased in the market 
  • Difficult to gain customer trust 
  • Non compliance with the law 
  • In the violation of section 63 of FSS Act, fine and penalties can be levied on the business 
  • Negative impact on the business 
  • Bad for long term 
  • Cannot expand the business 
  • Cannot work freely without fear 

Benefits of Having FSSAI License

There are a number of benefits or advantages of obtaining a food or FSSAI license due to which one must obtain this license. Some of the key benefits of having or obtaining FSSAI License are mentioned below: 

  • FSSAI License helps in maintaining the safety and quality of the food you consume.
  • Having an FSSAI License builds trust with your customers as it signifies adherence to food safety standards.
  • It keeps you legally compliant with food safety laws and standards set by the government.
  • With the license, you can expand your business and reach out to more customers and markets.
  • enhances your brand’s reputation and shows commitment towards food safety.

Conclusion

Running a food business without FSSAI License can have severe implications as it directly contravenes the Food Safety and Standards Act of 2006. This license ensures food safety and legal compliance.  It is mandatory for all food businesses, irrespective of their scale. The result of operating a food business without FSSAI license is grave and may lead to hefty fines, legal complications, and a negative impact on business credibility. 

Obtaining the FSSAI License is crucial as it not only upholds food safety but also fosters customer trust and enhances the brand’s reputation, enabling business expansion and market reach. Therefore, it is strongly advisable for all food businesses to adhere to this regulatory mandate to avoid legal penalties and uphold the safety and trustworthiness of their enterprise.

Related Posts

Leave a Comment

startupfino

Startupfino is one and only platform in India which is exclusively formed to support startups for their financial and legal matters. Startupfino is working in the ecosystem since a decade and is well equipped to handle the complexities in a startup faced by founders.  View More…

 

LetsGoLegal Advisory Private Limited

 

Learning Section

Contact Us

Mobile:   829-829-1011
Mail:       info@startupfino.com

Head Office

22, 2nd Floor Vaishali, Pitampura, Delhi 110034 


Gurgaon Office

880, Udhyog Vihar Phase-V, Gurugram, Haryana

 

Bangalore Office

Indiqube Sigma 3B 4th Floor Wing A2,7th C Main 3rd Block Koramangala Bangalore-560034

 

Faridabad Office

59/9, Faridabad, Haryana, 121006

 

© startupfino, 2024