December 16, 2023

FSSAI registration is one of the most important registration requiredby every person involved in the food business, such as persons who wish to open a restaurant, bakery, hotel, cloud kitchen or food stall in India. Every Food Business Operator (FBO), such as entities or persons involved in manufacturing, preparation, selling, transportation, distribution and storage of food articles/products, are also mandatorily required to have an FSSAI registration to carry on their food business. FSSAI stands for Food Safety and Standards Authority of India. It is an organisation that monitors and governs the entire food business in India. It is an autonomous body that is established under the Ministry of Health and Family Welfare, Government of India. The FSSAI has been established under the Food Safety and Standards Act, 2006 (FSS Act) which is a consolidating statute related to food safety and regulation in India. It ensures the food products undergo quality checks thereby curtailing the food adulteration and sale of sub-standard products. It is responsible for the registering and licensing of the FBOs in India and it lays down the rules and regulations for running the food business in India. Food Business Operators Who Require FSSAI Registration? The Food Business Operators (FBOs) carrying on the following kinds of the food business must have FSSAI License/Registration: Petty retailers, Retail Shops, Snacks shops, Confectionery or Bakery shops, etc Temporary stalls, fixed stalls, or food premises are involved in preparing, storing, distributing, and selling food products. Hawkers sell packaged or freshly prepared food by traveling from one location to another. Dairy Units, including Milk Chilling Units, Petty Milkmen, and Milk Vendors Slaughtering house Fish Processing, Meat Processing, and unit All Food Manufacturing units that include Repacking food Vegetable Oil Processing Units Proprietary food and Novel food Cold/refrigerated storage facility Transporter of food products having several specialized vehicles like insulated refrigerated vans/wagons, milk tankers, food wagons, food trucks, etc Wholesalers, suppliers, distributors, and marketers of food products Hotels, Restaurants, and Bars Canteens and Cafeteria, including mid-day meal canteens Food Vending Agencies and Caterers Dhaba, PG provides food, a Banquet hall with food catering arrangements, Home Based Canteen, and Food stalls at fairs or religious institutions. Importers and Exporters of food items and food ingredients E-Commerce food suppliers, including cloud kitchens Eligibility Criteria for Food Business Registration/License The document attached here provides eligibility criteria for Food Business Registration/License. FSSAI Registration Every person (natural or artificial) involved in food business, such as manufacturing, processing, storage, distribution and sale of food products must compulsorily obtain FSSAI Registration or License. FSSAI Registration is different from the FSSAI License depending on the size and nature of the business. FBOs should obtain the necessary registration or license depending on the size of their businesses. FSSAI Registration is a 14-digit registration or a license number that is printed on all the food packages. The 14-digit registration number gives details about the assembling state and producer’s permit. This registration procedure is aimed to create more accountability on the FBO to maintain the quality of the food products.  The licensing and registration procedure and requirements are regulated by Food Safety & Standards (Licensing and Registration of Food Business) Regulations, 2011. FSSAI Registration/FSSAI License FSSAI registration is provided based on the business types, turnover, and production capacity. According to the installed capacity and turnover, FBOs are eligible for essential, central, and state licenses. Types of FSSAI Registration FSSAI registration is based on the business types, turnover and capacity of production. Depending upon the installed capacity and turnover, FBOs are eligible for license such as basic license, central license, and state license. FSSAI Basic Registration – FBOs having a turnover of less than Rs.12 lakh p.a must obtain FSSAI basic registration. The FSSAI registration form that the applicant has to fill to obtain FSSAI basic registration is Form A. FSSAI State License – FBOs having a turnover of more than Rs.12 lakh p.a and less than Rs.20 crore p.a must obtain the FSSAI state license. The FSSAI registration form that the applicant has to fill to obtain an FSSAI state license is Form B. FSSAI Central License – FBOs having a turnover of more than Rs.20 crore p.a must obtain the FSSAI central license. The FSSAI registration form that the applicant has to fill to obtain FSSAI central license is Form B. Benefits of Procuring FSSAI Food License Obtaining a license can provide the food business with legal benefits, build goodwill, ensure food safety, create consumer awareness, and assist in business expansion. Also, it helps regulate, manufacture, storage, distribution and sale of import food. It is easy to obtain funds from investors when an FBO has FSSAI registration. The FSSAI logo on the food products ensures the quality of food to the customers. The FSSAI registration number displayed on the food premises indicate that the premises comply with the hygiene and quality standards. Difference between FSSAI Registration and FSSAI License Particulars FSSAI Registration FSSAI License Turnover Limit Businesses having an annual turnover not exceeding Rs.12 lakh Companies having an annual turnover of more than Rs.12 lakh Types Basic Registration FSSAI Central License and FSSAI State License Size of Business Petty food business operators Medium and large-sized food business operators and food businesses Duration Duration depends on the applicability of the registration Issued for a period of a minimum of one year and a maximum of five years Application Form A Form B Fees for Registration/License Fixed at Rs.100 per year. It varies from Rs.2000 to Rs.7500 per year, depending on the criteria and type of license. Publication The FBO should display the FSSAI registration on the office premises, and the registered number should be displayed on the product package. The exporter, importer, traders, and producers have to mandatorily publish the FSSAI license number on the package of the products. Procedure for Obtaining FSSAI Registration Online FBOs can obtain FSSAI registration online by filling and submitting the FSSAI registration form, i.e. Form A (application for Registration) or Form B (application for State and Central License) on the FoSCoS portal. The FBOs can also register offline by submitting Form A or Form B to the Food and Safety

The RBI has announced that to consolidate existing reporting frameworks for various types of foreign investment in India, it will introduce a Single Master Form (SMF) covering all available reports. The Reserve Bank is launching an online application, FIRMS (Foreign Investment Reporting and Management System), which will provide SMF. This article will discuss the registration of entity & business users in the FIRMS Portal of RBI. Foreign Direct Investment (FDI) filing with Reserve Bank of India (RBI) Foreign Direct Investment (FDI) filing with the Reserve Bank of India (RBI) refers to reporting the inflow of foreign investment in an Indian company to the RBI. This reporting is mandatory for Indian companies that receive foreign investments in equity shares, compulsorily convertible preference shares or debentures, and warrants or partly-paid shares. The reporting process involves submitting the Foreign Currency and General Permission Route (FCGPR) form and a Company Secretary (CS) certificate. Purpose of FDI reporting with RBI FDI reporting with RBI aims to ensure compliance with the FDI policy and provide a transparent and efficient regulatory framework for foreign investments in India. This helps the government and the RBI to monitor and regulate foreign investments in the country and to make sure that they comply with the FDI policy and regulations. The reporting of FDI inflows also helps in assessing the impact of foreign investments on the Indian economy and in formulating policies to attract more foreign investments into the country. Applicable Regulation on FDI filing with RBI The regulations applicable to Foreign Direct Investment (FDI) filing with the Reserve Bank of India (RBI) are primarily governed by the Foreign Exchange Management Act, 1999 (FEMA) and its regulations. Foreign Direct Investment (FDI) Foreign Direct Investment is an investment made by a foreign company or individual in an Indian company. FDI is a crucial component of India’s economic growth and development. It brings capital, technology, and expertise into the country, which can help improve the domestic economy and create jobs. Conditions required for FDI The foreign direct investment must be compliant with the FDI policy. Securities issued must be under the Foreign Exchange Management. Routes of Foreign Direct Investment (FDI) FDI is permitted fewer than two routes in various sectors: Automatic Route: Under this route, non-resident or Indian companies can invest in a company without prior approval from RBI or the Government of India. Government Route: Under this route, prior approval from the Government of India is required before investing in a company. FIRMS Portal FIRMS is made online in two phases. In the first phase, the first module, namely, Entity Master, was made available online. In the second phase, the second module is made available for the following reporting:  Reporting Form FC-GPR – issuance of Indian company instruments to a non-Indian resident  Form FC-TRS – transfer of financial instruments between a resident outside India and a resident of India  Form LLP-I – FDI in LLP by donating large sums of money and dividends of ESOPs/equity shares/shares against the use of ESOP by an Indian company to an employee living outside India.  Form CN – issuing or transfer of flexible notes  Form DRR – issuing/transfer of deposit receipts  Form DI – Reporting a downward investment (indirect foreign investment) to a company or LLP  Form InVi – Investment reporting by a foreign resident of India in-vehicle Investment. Reporting through FIRMS FIRMS Portal is a 24*7 online platform for reporting foreign investment in India which provides a common platform for all reporting. Reporting through FIRMS was divided into two phases: The first stage is creation of entity master form in which Indian entities are required to authorize one person through letter of authorization as per prescribed format given by RBI as per user manual for creation of entity master form. The authorized person is only authorized to update the data on the foreign investment. The second stage is the creation of a business user, which allows the user to report foreign investment transactions received at a given time. Here the user saves different forms depending on his criteria like FCGPR, FCTRS, DI form etc. The effect of this report can be seen on the main entity. What is an Entity User? An Entity User is a person authorized by the business (company/LLP/startup) to register a business in the Entity Master of FIRMS application. The Business User will be the sole person authorized to add/update the foreign investment details of the Business Enterprise and will be solely responsible for the data included.One business may only have one business user. One person can be a business user for more than one business. However, one should get the same different registrations as the registration is for the business. Documents for entity form The following documents need to be attached to create the main entity form:- In case of Indian entities (Company, LLP, etc.) Board resolution in favor of the beneficiary; PAN of the authorized person; Authorized letter in the prescribed format. Procedure to create Entity Master Following process is to be followed to create Entity Master:- Log on to https://firms.rbi.org.in Click on the Registration form for a new entity user A pop-up window will appear with the entity user registration form The user is now required to fill in the field description on the entity user form; Now the next step is to submit the said form to RBI where RBI will ensure and verify the details; After the user ID is created, a popup message will appear saying “Record saved successfully”. After the above procedure, the authorization letter is verified by RBI and if approved, the user will receive a password on their registered email address. This password can be changed later by the user after successful login. In the event that the user does not receive any email notification of approval/rejection of the registration within the next 48 hours, he can contact the email.An entity’s master unit is a master data reporting unit that shows the total foreign investment received by the entity during its lifetime. What is