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Biggest mistake that Food Startups could do is to miss out on FSSAI License

FSSAI License
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Food license is mandatory to carry any business activity which deals with production, manufacture,  processing, distribution, selling, import, export, stock of any food article or beverage and it includes Dairy Business, Meat processing, Hotels.

Benefits of FSSAI license

FSSAI license certifies that food is tested and the hygiene, sanitary and safety requirements as set by government of India have been followed by the business entity.

Punishment for carrying on business without FSSAI license

The Food Safety and Standards Act, 2006 strictly prohibits any person or food business operator to engage into manufacturing, selling, distribution or imports of any food product without FSSAI license, punishment with imprisonment for 6 months and also with a fine upto Rs. 5,00,000.

Who does not require FSSAI?

Any small food business operator who manufactures or sells any food item himself or a petty retailer, hawker, itinerant vendor or temporary stall holder or distributes foods including in any religious or social gathering except a caterer are exempted from FSSAI license, but it is mandatory for them to register with Food Authority. Annual turnover of these Food Business Operator is less than Rs. 12 lakhs. Once these Petty food business operator register with Food Authority, Certificate of Registration and a photo identity card.

Categories of FSSAI license:  2 types, Central and State, depending upon the turnover /output or storage capacity of Food business operator.

      1. State Fsssai license is mandatory for food Business operator(FBO) if:

  • Its Annual turnover of FBO is above 12 lakhs, or
  • It is 3 star hotels and above, or
  • If Transporter having 100 vehicles or turn over up to 30 crore
  1.  Central FSSAI license is mandatory for food Business operator (FBO) if:
  • Its annual turnover is above Rs. 20 crores, or
  • Its business operations in more than one state, or
  • Any FBO is engaged in import or export of food products, or
  • It is Five star Hotels and above

Note: Eligibility for state and Central FSSAI license varies from business to business.

Documents Required for FSSAI State and Central License:

  1. Blueprint or layout plan of the processing unit
  2. List of Directors or partners with full address and contact details
  3. Photo ID and address proof issued by Government authority of Proprietor or Partner or Director(s)
  4. Name and List of Equipments and Machinery along with their number, installed capacity
  5. List of food category desired to be manufactured. (In case of manufacturers).
  6. Authority letter with name and address of responsible person nominated by the manufacturer along with alternative responsible person indicating the powers vested with them viz assisting the officers in inspections, a collection of samples, packing & dispatch. (Mandatory for manufacturing and processors).
  7. Analysis report (Chemical & Bacteriological) of water to be used as an ingredient in food from a recognized or public health laboratory to confirm the portability (mandatory only for manufacturing and processing units only).
  8. A Copy of sale deed or Rent agreement orElectricity bill
  9. A copy of Partnership Deed or Affidavit or AOA & MOA towards the constitution of the firm.
  10. A copy of certificate obtained under Co-Op Act – 1861/Multi State Co-Op Act – 2002 for Co-Operatives. (if applicable).
  11. Food Safety Management System plan or certificate (if any).
  12. Source of raw material for meat and meat processing plants. (if applicable).
  13. Pesticide residues report of water (for packaged drinking water business),
  14. NOCs from Municipality or local body. (optional)
  15. Supporting document proof for turnover
  16. Import Export  Code document issued by DGFT(dealing with import and export of food products)

 

Start-up process entails complex procedures and many bureaucratic hurdles, entrepreneurs are better off using professional services. Hiring a virtual lawyer and virtual accountant can save time and help ensure that the process goes smoothly.

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