The regulations governing food standards in India given under the Food Safety and Standards Act of 2006. The FSSAI oversees specifications pertaining to food manufacturing, processing, and storage methods. The primary objective of the FSSAI is to safeguard and promote the health of consumers by appointing various food safety authorities.
Food Business Operators involved in different stages of food manufacture and production must obtain a valid licence under FSSAI. This licence is mandatory for businesses planning to initiate a food business in India or directly sell food items to consumers. FSSAI registration provides three categories of licences to businesses based on the type and size of the food business and its annual turnover and in this blog, we shall see the details on transfer of food licence under FSSAI regulations.
Registration with FSSAI
To run a food business in India, it’s important to register with the Food Safety and Standards Authority of India. It’s important for Food Business Operators to grasp the powers and duties linked with this registration.
FSSAI registration is not confined to food manufacturing and culinary enterprises exclusively and the transfer of the food licence is also possible in the industry. Also, it’s obligatory for any entity engaged in food processing and distribution across various stages, starting from sourcing raw materials to production, packaging, and delivery. This encompasses canteens, marketing and catering agencies, and even those operating from home with a limited customer base. Restaurants and hotels also fall under the purview of this requirement.
Categories of FSSAI Licence
FSSAI licence are categorised into three main types based on business turnover and size. It’s important to choose the appropriate category that aligns with your business’s specific circumstances.
Basic Registration
Basic Registration is suitable for businesses with an annual turnover of less than 12 lakh, and it is processed using Form A.
State Licence
For businesses with an annual turnover ranging from 12 lakh to 20 crores, obtaining a State Licence using Form B is mandatory.
Central Licence
Businesses with an annual turnover exceeding 20 crores are required to obtain the Central Licence. Regardless of the turnover, this licence is necessary for large-scale manufacturers.
In addition to the turnover, the size and structure of your food business also play a role in determining the appropriate licence category. Medium-sized establishments like hotels or restaurants often opt for a State Licence, while large-scale manufacturers, regardless of their turnover, must obtain a Central Licence.
Furthermore, for FBOs operating from multiple locations, the licences will vary according to the size and turnover of each establishment. For example, a hotel with a registered office in Chennai but operating from several other locations across India would need a Central Licence for the registered office and separate licences for the other locations.
When Transfer of Food Licence is Required?
The transfer of FSSAI licence is necessary in the following circumstances:
Change in Ownership:
When there’s a change in the ownership of a food-related business, it necessitates transfer of the food licence. This change can result from the sale of the business or a shift in the management or ownership structure. In these cases, the existing food licence cannot be utilised by the new owner. Instead, a new licence must be obtained in the name of the new entity to ensure compliance with the updated ownership details.
Relocation of Business:
When a food business is being relocated to a new location, the transfer of FSSAI licence to new address is needed. This ensures that the licence remains valid and compliant with the business’s new operational base. This is the second case where a transfer of FSSAI licence is needed.
It is important for businesses undergoing such changes to promptly initiate transfer of FSSAI licence to maintain legal compliance and adhere to food safety regulations.
Transfer of Food Licence under FSSAI Regulations
The transfer of Food Licence is necessitated by specific situations, including a change in ownership due to various factors. This process often involves transfer of licence from the original holder to another individual, typically a legal representative or immediate family member, and requires adherence to the following steps:
1. Initiation of Transfer:
When the original Food Business Operator passes away, and the FSSAI licence is in their name, then the transfer of food licence becomes essential. Most commonly, the licence is transferred to the legal representative of the deceased or an immediate family member.
2. Application Submission:
To affect the transfer of an existing licence, an application must be submitted to the Food Safety and Standards Authority of India.
3. Application by Legal Representative:
Subsequently, the legal representative of the deceased licence holder must make an application to the FSSAI for the licence to be transferred in their favour.
4. Application Verification:
The FSSAI will carefully verify the submitted application. If no discrepancies are identified, the licence will be transferred to the applicant as requested.
5. Opportunity for Rectification:
If there are any discrepancies in the application, the applicant is provided with a fair opportunity to make them correct before the application is dismissed. By doing this, the registration office ensures an equal and fair process.
Important Considerations in transfer of food licence:
Emphasising its significance, it’s crucial to note that the registration will remain linked to the name of the deceased licence holder until a transfer request is initiated by the legal representative or another surviving family member. Moreover, if the legal representative fails to instigate the transfer within 90 days following the expiration of the holder’s registration certificate or licence, the licence will become invalid.
Ensuring a seamless transfer of food licence in the unfortunate event of the original licence holder’s passing is important. This process is essential to uphold regulatory compliance and enable the smooth continuation of the food-related business.
Procedure for Transfer of Food Licence
Transfer of Food Licence under the Food Safety and Standards Authority of India involves several steps that can be initiated through the official FSSAI website. The process has the following steps:
1. Log in to the FSSAI Website:
Access the official FSSAI website and log in using the assigned credentials.
2. Select Transfer Option:
Choose “Duplicate/Surrender/Transfer of Certificate” from the menu, and then cllick on “Apply for Duplicate/Surrender/Transfer of Certificate.”
3. Opt for ‘Transfer’:
Find and select the ‘Transfer’ option corresponding to the relevant FSSAI licence number that requires a transfer.
4. Input Essential Details:
Complete all the necessary sections on the application form. These details encompass the business’s address, contact information, registered office details, the reason for the licence holder’s demise, and the date of their passing. Once this information is provided, proceed by clicking ‘Proceed.’
5. Submission to Authorised Officer:
The application will be submitted to the authorised officer responsible for processing FSSAI transfer applications.
6. Attach Documents:
Along with the application for the transfer of the food licence, you must attach the following documents:
– The death certificate of the previous licence holder.
– The legal heir certificate of the new owner who intends to acquire the licence.
7. Seek Professional Assistance:
Seek professional assistance if needed, as compliance with FSSAI regulations is critical for the food business. Organisations like StartupFino can assist you in the legal requirements related to FSSAI licences.
Completing the transfer of food licence is essential to ensure the lawful continuation of a food-related business following a change in ownership due to the death of the original licence holder.
Points to Remember for Transfer of Food Licence
When engaging in the transfer of food licence, several critical points should be kept in mind to ensure a smooth and compliant process:
1. Timely Completion:
The transfer of a food licence must be completed within 30 days of any change in ownership or address. Timely action is essential to maintain regulatory compliance.
2. Regulatory Adherence:
The new entity procuring the licence is required to adhere to all the terms and regulations outlined in the initial food licence. Complying with these regulations is important to uphold food safety and quality.
3. Duration of Licence Validity:
The duration of the new licence, following the transfer, will align with the validity period of the original licence. Businesses should monitor and renew the licence as needed to avoid any disruptions in compliance with food safety standards.
By adhering to these essential points, businesses can ensure a seamless and lawful transfer of food licence, maintaining the integrity and safety of their food-related operations.
Final Thoughts
Transfer of food licence is a vital procedure that should be promptly executed, usually within a 30-day window from the alteration in ownership or address. The new licence holder has the responsibility to maintain the regulations and terms specified in the initial licence, guaranteeing ongoing adherence to food safety standards.
Importantly, the validity period of the new licence remains consistent with that of the original licence, necessitating timely renewal when required. By diligently following these guidelines and ensuring a seamless transfer process, businesses can safeguard their operations, maintain food safety, and adhere to the legal and regulatory requirements governing the food industry.
