The Food Safety & Standards Act was legislated by the Parliament of India in 2006. Food Safety & Standards Authority of India (FSSAI) was created to enforce the rules and regulations of the Food Safety & Standards Act 2006 (FSS Act 2006). The registration and licensing of food business in India is performed under the rules prescribed by the Food safety and Standards (Licensing and Registration of Food businesses) Regulations, 2011. All the business activities related to food business in India such as manufacturing, storage, transportation or distribution of food products, are required to apply and secure an FSSAI registration or an FSSAI License. Sometimes people are confused about this as they do not know the difference between FSSAI Registration and FSSAI License. This is explained below.
FSSAI registration is required for a category of food business which is called petty food business. Petty food business or petty food operator is defined as an FBO who is a manufacturer or sells any article of food himself as a petty retailer, hawker, itinerant vendor or temporary stall holder. If an FBO distributes foods in any religious or social gathering and the turnover does not exceedRs 12 lakhs. FBOs in this category are required to obtain a FSSAI registration by submitting an application for registration in Form A. FSSAI registration certificate contains the registration number and a photo of the applicant. FBO has to display this certificate at the place of food business at all times while carrying on the food business.
Any person or company which cannot be categorized as a petty food business operator is required to obtain a FSSAI license for operating a food business in India. An applicant can apply for FSSAI license which is of two types, State FSSAI License and Central FSSAI License. Based on the annual turnover and presence in one or more states, FBOs need to apply for State or Central License. Any large food business which is manufacturing, processing, transporting and importing food products require central FSSAI license while medium sized food manufacturers, processor and transporters need a State License. The fee and process of obtaining a FSSAI license is more complex than securing a FSSAI registration. FSSAI license application is made in Form B while for FSSAI Registration, the applicant is required to fill Form A.
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If you want to have full control over your business with limited liabilities, then OPC is the best choice to start with. But ensure that you convert your business structure (within six months) to the private limited company after crossing an average turnover of 2 crores over three consecutive years or has a paid-up capital of over 50 lakhs.
When two or more people agree to do business together and both might be from same family or same association. Once partners are engaged in a business, each partner is personally liable for the actions of that business, including the obligations of the other partners There are no shields against personal liability.
If you don’t want to take responsibility or liability for another partner's misconduct, incompetence or negligence and also want to limit your liabilities for the debt and losses. If you want to enjoy tax benefits, then LLP might be the best option to go with. It’s the most flexible type of business structure to start with.
It’s the most renowned legal structure for business. The financial liability of the shareholders is limited to the their shares in case of any defaults, bankruptcy and/or any suits or recovery by banks/creditors. This simply means that personal assets of the sahreholders are kept seperate from the Company itself. Private limited company has more credibility as compared to other business structures available.
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