The benefits of FSSAI License and details regarding its registration have been given under Food Safety and Standards Act, 2006. It is mandatory to take FSSAI License to all individuals or entities who are involved in food businesses. After the Startup India Scheme of government, there is a boon of startups in the market and most of them are food businesses. Food startups are small-scale food businesses that are already struggling with many formalities. In such situations sometimes they compromise with the quality of food. For the safety of consumers and to maintain the quality of food, the government comes up with this Food Safety and Standards Authority. The benefits of FSSAI License are not just limited to the government but also extended up to the licensee.
FSSAI License Registration in India
The Food Safety and Standards Authority of India was introduced by the government in 2006. FSSAI consolidated the laws governing food in India. It establishes criteria for food products based on science. It controls food products’ production, handling, sale, and import while introducing the common man to the benefits of FSSAI License. Under the same statute, FSSAI License has been obtained through FSSAI Registration to guarantee the supply of healthy, safe food for human consumption.
There are three different sorts of FSSAI Licenses, general registration, state license, and central license. How much money a food business makes and what kind of food business it is determined which license is relevant. There could be a significant fine if this is not followed. Hence, everybody who works in the food industry must register with FSSAI and get the benefits of FSSAI registration.
Small-Scale Food Businesses
Small-scale food businesses are petty food business owners, including but not limited to those that produce or sell any type of food they have personally prepared. Petty retailers, hawkers, itinerant sellers, temporary stalls like thela, confectionery stores, juice stands, etc. are also included. Temporary food stands, such as South Indian food stands and Chinese food stands, fall into the same group. Small-scale food companies frequently include gol gappa stalls, fruit and vegetable sellers, snack and tea stalls, samosa and bread pakoda stands, retail stores, etc. The majority of small-scale food enterprises just need to obtain a General FSSAI License because their annual revenue is less than or equal to 12 lacs. Anyone can afford this because the government costs are so low.
Benefits of FSSAI License for Small-Scale Food Businesses
The benefits of the FSSAI License are very helpful for small-scale food businesses in India. It not only attracts the customer’s trust but also helps the owner while complying with legal formalities. Some of the measure benefits of FSSAI License have been given below:
Legal and statutory Compliance
If one is operating a food business in India, obtaining FSSAI License is permissible and required by law. All companies that directly or indirectly deal with food are required to obtain FSSAI Registration to get the benefits of FSSAI License. Therefore, all small-scale food firms involved in the food industry must obtain this license. If it is discovered that a person or organization is engaged in the food industry without having FSSAI Registration, they may face severe punishment. This fine, which in some circumstances can reach two lacks, can cause the collapse of your company.
Goodwill
Owners of food businesses receive FSSAI License so that food safety and hygiene standards can be upheld. As a result, having this license assures customers that the food they are purchasing is both safe and free of adulteration, which helps the company to get goodwill in the market and stand out among its rivals in the marketplace. Small-scale food enterprises need goodwill because it is essential to any company’s success.
Build Customer Trust
The main goal of FSSAI registration is to ensure food safety for the general public. Small-scale food businesses are now popping up quite quickly. One thing common among them is that their primary motive is to make money. There are occasions when they disregard public health in favor of profit. Therefore, the government comes up with the idea of a food license to ensure food safety. After obtaining this license, the proprietor of the food establishment must show it there in order to foster client confidence, which helps them in gaining customer trust.
Customer Reliability
With the aforementioned point “build customer trust” it is evident that one of the benefits of FSSAI License is that it aids in trust-building. Reliability will follow once consumer trust is established, which will enable the company to compete more successfully in the market.
Easy Expansion of Business
Later, small firms grow to be enormous ones. Anyone who begins a business always has the idea of business expansion in the back of their mind. But once more, it is not a simple process, particularly at this time when competition is fierce. Expansion is impossible without legal compliance, such as a food license, thus having this legal and statutory compliance makes it easier to expand small-scale food businesses.
Ease in Fund Raising
Every time a person wishes to build or extend their firm, they must raise money. Fundraising is a really challenging Endeavour. But one of the benefits of FSSAI License is that it makes life simpler when it comes to fundraising. Therefore if any small-scale food business owner wants to grow must take Food License.
Information Access one of the Main Benefits of FSSAI License
FSSAI was introduced in 2006 with the goal of giving the general population access to safe food. This act contains numerous requirements and guidelines that small-scale food businesses must adhere to, so that they can get the benefits of FSSAI License. Additionally, there are frequent developments in the food industry. But regrettably, some proprietors of food businesses are unaware of the same. FSSAI Registration is helpful in this case. Through the Food Safety and Standards Authority, business owners will have access to this kind of information once they have obtained this license. This keeps them up to date and promotes corporate expansion.
Reputation of Brand
Getting a Food License shows that you maintain the standard of food safety and quality. It will help you in building consumer trust, loyalty, and reliability. Once your business becomes popular among the consumers your brand value will increase. This is how Food License will help you out in building the reputation of the brand.
Safety against Penalty
The FSSAI was created with the goal of supplying high-quality food to the general people. Many people began their culinary businesses on a small scale in the previous few years. The government made it mandatory for all owners of food businesses to obtain an FSSAI Registration when it was discovered that they were lowering the quality of the food in order to maximize profits. The Food Safety and Standards Authority will impose a steep fine on anyone found operating a food business without this license. This fine occasionally has the power to destroy your company. A license offers protection from this punishment; hence one must take this license.
Conclusion
For Indian small food businesses, obtaining FSSAI License is essential in order to get the benefits of FSSAI License. It promotes food safety standards, assures legal compliance, and fosters confidence. The license shields owners from fines, promotes growth and informs them of rules. It denotes a commitment to client satisfaction, reputation enhancement, and increased competitiveness. This license is a sign of trust in a developing industry, encouraging moral behavior and corporate and consumer success.
