Can we start a business without FSSAI

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.

Can we start a business without FSSAI

Are you planning to start a business without FSSAI?

Food business and do not possess a license from FSSAI, you need to know that it is essential as this license conveys that food products are high quality. And, you cannot prove to customers that your food is safe from unhygienic processing, exposure to extreme temperature and air, and improper collection.

Benefits of Procuring FSSAI Registration/ License

  • Legal benefit
  • Ensure food safety
  • Build goodwill
  • Create consumer awareness
  • It helps regulate, manufacture, store, distribute, and sell imported food.
  • It becomes easy to obtain funds from investors when an entrepreneur has an FSSAI license.
  • FSSAI logos on food products ensure the quality of the products to the customers.
  • The registration number displayed on the food premises indicates that the premises comply with hygiene and quality standards.

FSSAI Penalty and Offenses for carrying out a business without an FSSAI license

According to Section 63 of the Food Safety and Standards Act of 2006, If any FBO (except the persons exempted from licensing under sub-section (2) of section 31 of this Act), who is required to obtain a license, manufacturers, sells, stores or distributes or imports any of food without a registration/license, shall be punishable with imprisonment for six months and also with a fine of 5 lakh rupees.

Consequences of not obtaining an FSSAI license/registration

Non-Availability of FSSAI Logo

All Food Business Operators need to obtain a 14-digit FSSAI License Number and print it on all the food products they own. As a symbol that informs people that the food product is hygienic to consume and licensed by the FSSAI, the FSSAI Logo plays a significant role.

Trouble obtaining credit

Investors, banks, or lenders will check your FSSIA licenses before investing or lending. Businesses planning to scale must apply for the permit based on their projected sales/capacity.

Risk Of Losing Credibility In The Market

Not renewing the FSSAI license could be a costly trade-off for FBO since it is directly associated with the reputation and credibility of the business. You might save some extra bucks annually by not renewing the license, but this could drastically impact your business, especially in the long run.

Risking disqualification from food-tenders

Not possessing an FSSAI License/registration may also make it harder for a business owner to apply to corporate events, apply for tenders or make their way to a more extensive set-up, as most of these opportunities will stipulate the requirement of a valid License.

FAQs

What is a Home Kitchen in FSSAI?

A home Kitchen offers a platform for customers to order homemade food from local chefs through a website or an app. Home kitchens are popular among people who want authentic, healthy, and affordable meals. These services connect customers with verified home chefs who cook a variety of cuisines and dishes with fresh ingredients. Customers can browse menus either on the website or apps like Zomato and Swiggy, or even one can place order on WhatsApp and get delicious food delivered to their doorstep. Online Home Kitchens offers customers a replacement for street and restaurant food.

FSSAI Registration:

  • Mandatory: All online home kitchens, regardless of their annual turnover, require FSSAI registration. This helps ensure adherence to food safety standards and builds consumer trust.

Types of Registration:

  • Basic FSSAI License: Applicable for businesses with an annual turnover below ₹12 lakhs. Requires Form A on the FSSAI website.
  • State FSSAI License: Applies if the turnover exceeds ₹12 lakhs but is less than ₹20 crores. Form B needs to be filled.
  • Central FSSAI License: Mandatory for nationwide chains or businesses generating revenue above ₹20 crores. Requires Form B submission.

Is an FSSAI license mandatory for small home kitchens?

Yes, even small home kitchens must obtain an FSSAI license if their turnover exceeds the specified limit.

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Advocate Shruti Goyal Advocate
Advocate Shruti Goyal is a legal expert specializing in corporate law and compliance. She writes to simplify legal topics for businesses and individuals alike.