Monday, December 9, 2024
Monday, December 9, 2024

Is it Important to Have a Food License in India?

by Swati Raghuwanshi
Food License in India

Due to the direct involvement of public health in the food industry, the government is very strict about it. In 2006 the government of India came up with a law called the Food Safety and Standards Act. The basic purpose of this law is food safety. As per this law, every food owner needs to get a food license to run their business. If anyone is caught running their food business without having a food license, a heavy penalty can be imposed. Hence it is important to have a Food License under the Food Safety and Standards Act, of 2006. 

To make the food industry adulteration free FSSAI License plays a very important role. It makes the market transparent and increases the trust of the people in food businesses. It is not only beneficial for the customers but also benefits the food business owners. There it is important to have a Food License with respect to the business owners as well as consumers.

What is a Food License?

For the safety of food, the government came up with a law in 2006, and as per this law called the Food Safety and Standards Act, every food business owner needs to take a food license to run a food business in the Indian market. A food License is a license that grants food business owners permission for the sale of food in the market. After getting FSSAI License Registration food business owners will get a 14-digit number.  This license gives confidence to the customers that food is safe and one can eat it. For the success of the food business, it is important to have a food license, as it not only builds trust in the market but also ensures reliability.

As per the Food Safety and Standards Act, 2006 there are three types of Food License in India. Which license one should take depends on the type of food business and its turnover.  Below is the description of all three Food Licenses:

State FSSAI License

If your food business is established and works in a particular state, without any interstate transaction and its turnover is more than 12 lakhs, then in such kind of food businesses State FSSAI License will be applied.  One can apply online to get this license. In most of the food business, the State FSSAI License works. There is a proper list of businesses to which the State FSSAI License will be applied, on the official website of FSSAI. One can go through that list and accordingly take the license.

Central FSSAI License

Businesses that are interstate and have a turnover of up to 20 lakhs or more need to take a Central Fssai License. The Central FSSAI License is not easy to take. It is one of the biggest licenses in the food industry. Hence it is important to apply for this license very carefully. Your petty mistake can result in the rejection of your application. Hence before applying check everything properly. Businesses like import-export, e-commerce, etc. need a Central FSSAI License. Turnover does not matter here.

General FSSAI License

There are many petty food business owners in India. These petty food business owners include but are not limited to hawkers, vendors, Chinese stalls, etc Such kind of business is small food businesses. If we talk about their turnover it is less than 12 lakhs. These kinds of food businesses are very small businesses, hence they just need to take a General FSSAI License.

Why is it important to have a Food License in India?

There are the following reasons due to which it’s important to have a Food License in India:

Create Consumer Awareness

It is important to have a food license which is also known as FSSAI License. It creates consumer awareness and helps the consumers to take the food that is safe to eat. It has certain guidelines that food business owners need to follow, if they violate those principles of law regarding the food industry they will have to face a heavy penalty. It makes the food market clean and adulteration-free. 

It makes the consumer aware so that they can take care of their health. FSSAI License helps consumers to know about the quality of the food they are consuming. Food business owners who have this license indicate to the consumer that the food is safe to consume and that they can have their food from such food businesses. Hence it’s important to have a food license for every food business owner for the safety of consumers as well as their own safety.

Increase Trustworthiness

FSSAI License has been issued by the Food Safety and Standards Authority in India. License is issued after the proper verification of the food quality and standards. This license indicates that food’s quality is as per the Food Safety and Standards Act. When somebody gets this license it indicates to the consumers that they are having safe and quality food. Therefore Food License increases the trustworthiness among the consumers. Hence to ensure trustworthiness among the consumers, it’s important to have a Food License.

Ensure Legal Compliances

As per the Food Safety and Standards Act, of 2006, it’s compulsory for all food business owners to take FSSAI License to run a food business in India. If any food business owner is caught running a food business without having this license as per their business requirement they will have to pay a heavy penalty. The penalty given under the Food Safety and Standards Act is enough to collapse a business.  Food License is a mandatory legal compliance of any kind of food business. It must be completed by the food business owner in any scenario. Hence to ensure that the legal compliance related to the Food License has been completed by the food owner, it’s important to have a Food License.

Business Expansion

Whenever any kind of business is open one of the goals behind the business is expansion. Every food business owner wants to expand their business. The same goes for the food business owners.  Whenever they start up with food in the back of their mind they always want to expand their business in the market.  

If you are also one of such businessmen then you must take an FSSAI License because without having this license food Business expansion is not possible. Whenever there is expansion of any kind of business there are certain kinds of legal formalities which one has to complete. Having an FSSAI License is one of them. Therefore for the expansion of the food business, it’s important to have a Food License in India.

Attracts Investors

In any growing business, there are lots of people interested in investing, but still, it’s not easy to get investors. This is because whenever somebody invests in any kind of business they prefer to check each and everything regarding that business. The very first thing they check is legal compliance.  In the food industry, a food license is one of the legal compliance of the food business. If any investor wants to invest in your food business they must ensure that you are having a food license for running your business. 

If they find that you have a license there are chances that they will be attracted to your business. But if any investor finds that you are running your food business without having a food license they will never invest in your business. Hence to get financial support for your business it’s important to have a food license in India.

Consumer Safety

As the food market is related to the basic need of any person which is food, its safety is very necessary. Food is directly related to the health of the consumer; hence it’s important to have a food license from the Food Safety and Standards Authority.  This authority ensures that food is safe for the consumer and this is how consumer safety will be ensured by providing food licenses to the food business owners in India.

Control Adulteration

The food business industry is one of the top 10 businesses in India. There are a number of food businesses in the market that result in heavy competition between the food businesses. Everybody in the market wants to make a profit in this industry, due to which many instances come out where food business owners have compromised the quality of food in order to make a profit. Hence to make the food industry adulteration-free it’s important to have a food license in India. This license gives confidence to the consumers that a particular food business is providing safe and quality food. 

Conclusion

Food License that is also known as FSSAI License serves to inform consumers about food safety, builds trust, ensures legal compliance, facilitates business expansion, attracts investors, safeguards consumer health, and helps control food adulteration. Thus, it’s important to have a Food License in India in order to run a food business. It is not merely a legal requirement but an important factor for the success of the food industry. It ensures credibility, growth, and the protection of public health. Also, it cannot be ignored as it is a mandatory compliance under the Food Safety and Standards Act, 2006

Related Posts

Leave a Comment

startupfino

Startupfino is one and only platform in India which is exclusively formed to support startups for their financial and legal matters. Startupfino is working in the ecosystem since a decade and is well equipped to handle the complexities in a startup faced by founders.  View More…

 

LetsGoLegal Advisory Private Limited

 

Learning Section

Contact Us

Mobile:   829-829-1011
Mail:       info@startupfino.com

Head Office

22, 2nd Floor Vaishali, Pitampura, Delhi 110034 


Gurgaon Office

880, Udhyog Vihar Phase-V, Gurugram, Haryana

 

Bangalore Office

Indiqube Sigma 3B 4th Floor Wing A2,7th C Main 3rd Block Koramangala Bangalore-560034

 

Faridabad Office

59/9, Faridabad, Haryana, 121006

 

© startupfino, 2024