Individual home-based culinary enterprises, meal delivery services and home-based cooking businesses are examples of small food business units. A person or group of employees in this category takes the customer’s order, prepares the food and delivers it. As a result, a Food Safety and Standard Authority of India or FSSAI licence is required to ensure the food’s standard and quality, as well as smooth operation of the business.
Manufacturers, traders, restaurants, grocery stores, home-based food company owners, small-eateries, importers, exporters, processors, merchants, dairy farms and other similar businesses/food business operators which come under small/petty businesses must get FSSAI registration.
What exactly is a Petty Food Business and Petty Food Business Operators?
Small food enterprises include home-based food businesses, street food vendors and small catering businesses.
Petty FBOs are those that create and sell their own food products. In the Indian food sector, they are an excellent source for snacks and luncheons. According to the FSSAI, this group includes all FBOs with an annual turnover of less than 12 lakhs, which is covered under the Basic FSSAI registration category.
Benefits Of FSSAI Registration for Small and Petty Businesses in India
There are numerous benefits of FSSAI registration for petty and small food businesses, which include:
- Legal Compliance: FSSAI registration ensures that the small business complies with necessary safety standards, providing legal benefits and credibility.
- Hygiene and Safety Awareness: FSSAI registration highlights the safe production, transportation, packing and selling of food items, creating awareness among consumers and food business operators about food hygiene and safety.
- Enhanced Goodwill: FSSAI-registered businesses stand out due to their adherence to quality management systems and safety standards, building goodwill and trust among customers.
- Science-based Standards: FSSAI’s internationally recognised and scientific regulations result in a better-quality management system, elevating the standards of the registered businesses.
- Business Expansion: FSSAI registration regulates various aspects of the food business, ensuring food safety for human consumption. This enhances goodwill and opens up opportunities for the small business to expand on a larger scale.
- Access to Wider Markets: FSSAI registration enables small businesses to access wider markets, including government tenders, export opportunities and collaborations with established brands.
- Consumer Confidence: FSSAI’s certification reassures consumers about the quality and safety of the food products offered by the small business, increasing consumer confidence and loyalty.
- Avoidance of Legal Troubles: Compliance with FSSAI standards helps small businesses avoid potential legal issues and penalties related to food safety violations.
- Better Partnerships: FSSAI registration enhances the credibility of small businesses, making them more attractive partners for collaborations with other established companies.
- Brand Reputation: FSSAI registration contributes to the overall reputation of the small business as a responsible and trustworthy food provider.
Small Food Business Operators Required to Register with FSSAI
Small Food business operators in India are required to register with the food regulatory authority in the following cases:
FBOs involved in Food Manufacturing:
- Meat processing units with an annual turnover of less than ₹12 lakhs.
- Dairy units, including chilling units involved in processing or handling dairy products, are another category that requires FSSAI registration.
- Dairy units producing up to 2.5 metric tons of milk solids per year or managing 500 litres of milk per day.
- Slaughtering houses dealing with 50 poultry birds, 10 small animals and 2 large animals per day are also included in the list of FBOs that must register with FSSAI.
- Units involved in producing vegetable oil through the solvent extraction process, refineries and oil expeller units are an essential part of the food industry.
- Re-labellers or re-packers of food processing units, trading in food with a capacity of 100 kg or 100 L and having an annual turnover not exceeding ₹12 lakhs must register with FSSAI.
Storage Units Requiring Registration:
- Cold or refrigerating units with an annual turnover of less than ₹12 lakhs.
- Controlled atmosphere units with an annual turnover not exceeding ₹12 lakhs are also included in the list of FBOs requiring FSSAI registration.
- Other storage units with an annual turnover below ₹12 lakhs must also register with FSSAI.
Other Businesses that Need Registration:
- Hotels/restaurants, being an important part of the food industry, need to register for FSSAI Licence.
- Wholesalers and retailers’ registration holds them accountable for the quality and safety of the food items they handle.
- Hawkers and mobile food vendors bring convenience and variety to consumers but must also adhere to food safety standards.
- Canteens and clubs, whether in educational institutions, workplaces or recreational facilities, need to register with FSSAI to provide safe and nutritious food options to their patrons.
- Distributors, marketers and transporters form important links in the food supply chain and FSSAI registration ensures that they handle food products in a safe and compliant manner, safeguarding the quality of the products during transit and distribution.
- Dhabas and food stalls are popular food outlets, especially on highways and busy street who need FSSAI registration.
- Fish and meat sellers are responsible for providing fresh and unadulterated products to consumers. FSSAI registration ensures that these vendors follow proper handling and storage practices, minimising the risk of foodborne illnesses.
- Home-based canteens that cater to a limited clientele must also register with FSSAI.
- Social and religious institutions that supply food to the needy play a significant role in charitable endeavours. FSSAI registration ensures that the food distributed to those in need meets quality standards, promoting the well-being of the recipients.
Required Documents for FSSAI License for Small Businesses
To obtain an FSSAI licence for small businesses in India, the following essential documents need to be submitted:
- Recent Passport-Sized Photographs: Photographs of the food business owners are required as part of the application process.
- Identity Proof: Any of the following identity proofs should be provided – PAN Card, Aadhar Card, Driving License, Voter’s ID card or Ration Card.
- Product Details: Detailed information about the planned food products should be included in the application.
- Legal Documents: Properly filled and signed Form-A, along with supporting documents such as the Certificate of Incorporation (COI), Memorandum of Association (MOA), Partnership Deed and Articles of Association (AOA), if applicable, must be provided.
- Building Documentation: If the business premises are rented, a rental agreement or any relevant building documentation should be submitted.
- List of Partners and Directors: Form IX containing the details of all partners and directors associated with the business is required.
- Raw Material Sources: Information about the sources of raw materials used in the production of food items must be provided.
- Food Safety Management System: The structure of the Food Safety Management System that will be implemented should be outlined.
- Water Test Reports: Reports of water quality tests conducted on the premises should be included to ensure the safety of food preparation.
- Equipment List: A comprehensive list of the equipment used in the food processing and handling should be furnished.
- Supporting Documents: Any additional supporting documentation, such as a No Objection Certificate (NOC) from the local panchayat or the health department, should be submitted, if required.
Steps to Obtain FSSAI License for Small Food Business Owners
Obtaining an FSSAI licence for small or petty businesses involves the following steps:
- Submission of Form A: The food business owner must begin by submitting Form A to the Food & Safety department. This form serves as the initial application for the FSSAI licence.
- Application Review: The Food & Safety department reviews the submitted Form A and decides whether to accept or reject the application. They communicate their decision to the applicant in writing. This review process typically takes around seven days.
- Issuance of Registration Certificate: If the application is accepted, the authority proceeds to issue a registration certificate to the food business owner.
- Receipt of FSSAI License: After successfully completing these steps and obtaining the registration certificate, the food business owner officially receives the FSSAI licence.
FSSAI Licence Renewal for Small/ Petty Food Businesses
In India, the FSSAI Licence for small businesses is required to start a food business; similarly, the FSSAI Licence Renewal for small businesses in India is required. This licence is valid for one to five years; thus, the food business must apply for renewal within thirty days of the existing food licence expiring.
FSSAI has developed an online application called as the Food Licencing and Registration System (FLRS), through which food enterprises in India can apply for a licence.
Exemptions from Food License for Small/Petty Businesses
Some small Food Business Operators (FBOs) are not required to obtain FSSAI Registration. They are exempt from obtaining the FSSAI registration or licence. The following are exempt:
- Travelling Vendors
- Small-scale FBOs
- Cottage Food Sellers
- Tiny Food Business Operators
- Temporary Stallholders
- Street Hawkers, etc.
Final Thoughts
Obtaining an FSSAI licence is important for small or petty food businesses in India, including home-based culinary enterprises, meal delivery services and small catering businesses. The FSSAI licence ensures adherence to food safety standards and smooth business operations. The benefits of FSSAI registration for small businesses encompass legal compliance, enhanced goodwill, science-based standards and improved consumer confidence.
The registration process involves submitting necessary documents and the online application system makes it convenient for food businesses to apply for renewal as required. By obtaining the FSSAI licence, small or petty food businesses can uphold food safety and quality standards, gaining credibility and trust among their customers.
For more clarity on the need for small and petty businesses to obtain an FSSAI licence, connect with our experts at StartupFino.
