Who Needs an FSSAI License

🍽️ Introduction: Is Your Food Business Legally Protected?

Imagine this: You’ve just opened a cozy cloud kitchen serving artisanal biryanis. Orders are pouring in from Swiggy and Zomato. Customers love your food. But one day, a food safety inspector shows up—and you don’t have an FSSAI license.

Suddenly, your dream venture is at risk. Fines. Closure. Legal action.

You’re not alone. Thousands of food entrepreneurs across India—small vendors, home bakers, cloud kitchens, and even large manufacturers—operate without realizing that an FSSAI license is mandatory under Indian law.

The Food Safety and Standards Authority of India (FSSAI) was established in 2006 to ensure safe, hygienic, and quality food for every Indian. Today, no food business can legally operate without FSSAI registration or licensing—no matter how small.

But confusion remains: Who exactly needs an FSSAI license? What type applies to my business? What if I run a home-based cake business? Do food delivery aggregators need one too?

In this comprehensive, SEO-optimized guide, we’ll answer all these questions and more. Whether you’re a street vendor, a restaurant owner, or launching a food startup, this article will help you understand:

✅ What an FSSAI license is and why it’s non-negotiable
✅ Who legally needs an FSSAI license under the FSS Act, 2006
✅ The three types of FSSAI licenses and eligibility criteria
✅ A turnover-based eligibility table to determine your license type
✅ Penalties for non-compliance
✅ Real-world case studies
✅ Expert tips to choose the right license

By the end, you’ll know exactly whether your food business needs an FSSAI license—and how to get it right.

Let’s dive in.

🔍 Table of Contents (Click to Jump)

What is an FSSAI License?
Why is FSSAI License Important?
Legal Basis: FSS Act, 2006 – Mandatory Licensing
Who Needs an FSSAI License? Complete List

Food Manufacturers
Small Food Vendors
Restaurants & Cafes
E-commerce Food Sellers
Food Transporters & Distributors
Importers & Exporters
Storage & Warehouse Operators
Home-Based Food Businesses

Types of FSSAI Licenses: Basic, State, Central
FSSAI License Eligibility Criteria
Turnover-Based FSSAI License Decision Table
Exceptions & Exemptions
Penalties for Operating Without FSSAI License
Case Studies: Real Businesses & Their FSSAI Journeys
Expert Tips: Choosing the Right FSSAI License
How to Apply for FSSAI License – Step-by-Step
FSSAI License Cost Breakdown
Common Mistakes to Avoid
Conclusion: Get Compliant, Grow Confidently
FAQs

1. What is an FSSAI License?

The FSSAI license is a legal permit issued by the Food Safety and Standards Authority of India (FSSAI) to any individual or entity involved in the food business.

It acts as proof that your food business complies with the hygiene, safety, and quality standards set under the Food Safety and Standards (Licensing and Registration) Regulations, 2011.

There are three types of FSSAI registrations/licenses:

Type	For Whom	Issuing Authority
Basic FSSAI Registration	Small businesses (turnover < ₹12 lakh)	Local Municipal Corporation or Designated Officer
State FSSAI License	Medium businesses (₹12 lakh – ₹20 crore turnover)	State Food Safety Department
Central FSSAI License	Large businesses (turnover > ₹20 crore) or those with pan-India operations	FSSAI Headquarters (Central Authority)

📌 Note: Even if you’re selling homemade snacks online, you must have at least a Basic FSSAI Registration.

The FSSAI license number is mandatory to display on:

Food packaging
Invoices
Website
Restaurant menus
Social media profiles

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2. Why is an FSSAI License Important?

An FSSAI license isn’t just a legal formality—it’s a trust signal to customers, partners, and regulators.

Here’s why every food business must have one:

✅ 1. Legal Requirement

Operating a food business without FSSAI registration is illegal under Section 31 of the FSS Act, 2006.

✅ 2. Builds Customer Trust

Consumers today check for the FSSAI logo before buying. It assures them the food is safe and regulated.

✅ 3. Required for Business Growth

You cannot:

Open a bank account for your food business
Apply for food delivery partnerships (Swiggy, Zomato)
Sell on e-commerce platforms (Amazon, Flipkart, Meesho)
Participate in food exhibitions
Export food products
…without a valid FSSAI license.

✅ 4. Avoids Heavy Penalties

Penalties range from ₹1 lakh to ₹10 lakh, plus imprisonment in severe cases.

✅ 5. Enables Branding & Packaging

Only licensed businesses can print the FSSAI license number on labels—essential for branding and retail distribution.

✅ 6. Supports Loan & Funding Applications

Banks and investors ask for FSSAI license as proof of legitimacy.

💡 Did You Know? Over 60% of food startups fail within the first year due to non-compliance issues—FSSAI being a top reason.

3. Legal Basis: FSS Act, 2006 – Is FSSAI License Mandatory?

Yes. Section 31 of the Food Safety and Standards Act, 2006 clearly states:

“No person shall commence or carry on any food business without obtaining an FSSAI license or registration.”

This applies to all food business operators (FBOs), regardless of:

Business size
Turnover
Nature of operation (online/offline)
Location (home, shop, factory)

🔹 Key Regulations:

FSS (Licensing and Registration) Regulations, 2011
FSS (Packaging and Labelling) Regulations, 2011
FSS (Advertising and Claims) Regulations, 2018

These laws empower FSSAI to:

Inspect food premises
Collect samples for testing
Suspend or cancel licenses
Impose fines or jail terms

📌 Penalty for Violation:

Up to ₹10 lakh fine and 6 months imprisonment for repeat offenders.
Seizure of food stock.
Permanent closure of business.

⚠️ No exceptions—even if you’re selling homemade cookies from your kitchen.

4. Who Needs an FSSAI License? Complete List

Let’s settle this once and for all: If you’re involved in any stage of the food chain—from manufacturing to delivery—you need an FSSAI license.

Here’s a comprehensive list of businesses that must obtain FSSAI registration or license:

🏭 4.1 Food Manufacturers & Processors

Whether you’re making pickles in a 100 sq. ft. kitchen or running a large dairy plant, manufacturing food requires FSSAI licensing.

✅ Includes:

Juice makers
Snack producers (chips, namkeen)
Bakery units
Dairy processors (milk, paneer, ghee)
Spice grinders
Ready-to-eat meal producers
Beverage manufacturers (soda, health drinks)

📌 Example: A pickle brand like “Mother’s Recipe” holds a Central FSSAI License due to national distribution.

🛵 4.2 Small Food Vendors (Street Food, Hawkers)

Yes, street vendors need FSSAI registration!

Under the Street Food Vendors Scheme, small vendors can get Basic FSSAI Registration at low cost.

✅ Includes:

Chaat sellers
Juice cart operators
Pav bhaji, dosa, momos vendors
Tea/coffee stalls

📌 Benefit: FSSAI registration helps vendors access municipal carts, hygiene kits, and government schemes.

📊 Data: Over 8 lakh street vendors in India are now FSSAI-registered under urban development missions.

🍽️ 4.3 Restaurants, Cafes & Cloud Kitchens

Every food service establishment must have an FSSAI license.

✅ Includes:

Dhabas
Fine-dining restaurants
Fast food joints
Bakeries & dessert parlors
Cloud kitchens (ghost kitchens)
Tiffin services

📌 Swiggy/Zomato Rule: You cannot list your restaurant without uploading your FSSAI license.

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🛒 4.4 E-commerce Food Sellers (Online Platforms)

Selling food online? FSSAI license is mandatory—even on Instagram or WhatsApp.

✅ Applies to:

Home bakers selling cakes on Instagram
Health snack brands on Amazon
Organic honey sellers on Flipkart
Meal kit providers
Subscription food boxes

📌 Platform Rules:

Amazon requires State or Central FSSAI License for sellers.
Meesho allows Basic Registration for small vendors.

💡 Tip: If you sell on multiple platforms, get at least a State License for smoother compliance.

🚚 4.5 Food Transporters, Distributors & Wholesalers

Even if you don’t make food, transporting or distributing it requires FSSAI licensing.

✅ Includes:

Cold chain logistics companies
Food distributors supplying to retailers
Third-party delivery partners (Dunzo, Zepto)
Bulk suppliers to hotels/restaurants

📌 License Type: Based on vehicle capacity and annual turnover.

📌 Rule: If you own more than 2 vehicles used for food transport, you need a Central FSSAI License.

🌍 4.6 Importers & Exporters of Food Products

All food imported into or exported from India must have a Central FSSAI License.

✅ Includes:

Importers of olive oil, cheese, chocolates
Exporters of spices, basmati rice, seafood
Trading companies dealing in international food supply

📌 Additional Requirement: Importers must also comply with Customs and FSSAI port regulations.

📊 Fact: Over 5,000 importers hold Central FSSAI licenses in Mumbai, Chennai, and Delhi ports.

🏢 4.7 Storage & Warehouse Operators

Cold storages, godowns, and warehouses storing food items must be FSSAI-licensed.

✅ Includes:

Refrigerated warehouses
Grain storage units
Logistics hubs storing packaged foods

📌 License Type: Depends on storage capacity and turnover.

🔹 Rule: Warehouses with capacity > 50,000 MT need Central License.

🏠 4.8 Home-Based Food Businesses

Yes, home kitchens need FSSAI registration.

✅ Includes:

Home bakers
Tiffin service operators
Jam, sauce, or spice makers
Organic food sellers

📌 Good News: You can get Basic FSSAI Registration even from a residential kitchen.

📌 Requirements:

Separate cooking area (if possible)
Clean water supply
No pets in kitchen area
Proper waste disposal

💬 Myth Busted: “I’m just selling to friends—no license needed.” ❌
Truth: Any commercial sale, even informal, requires FSSAI registration.

🍳 4.9 Other Businesses That Need FSSAI License

Business Type	License Required
Catering services	State or Central
Food trucks	Basic or State
Food testing labs	Central License
Additive & preservative suppliers	Central
Food packaging units	State or Central
Dairy farms (milk collection)	Basic or State
Poultry farms (for food)	Basic or State

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5. Types of FSSAI Licenses: Basic, State, Central

FSSAI offers three levels of licensing based on business size, turnover, and operation scope.

Let’s break them down:

🟢 5.1 Basic FSSAI Registration

For: Small businesses with annual turnover less than ₹12 lakh
Issued by: Designated Officer (Municipal Corporation or District Authority)
Validity: 1 to 5 years
Fee: ₹100 per year
Application Form: Form A

📌 Who Qualifies?

Home bakers
Small street vendors
Petty retailers
Small tea stalls
Cottage food units

📌 Benefits:

Low cost
Quick approval (7–10 days)
Can sell locally

❗ Limitation: Cannot sell across state borders or on large e-commerce platforms.

🟡 5.2 State FSSAI License

For: Medium businesses with turnover ₹12 lakh to ₹20 crore
Issued by: State Food Safety Department
Validity: 1 to 5 years
Fee: ₹2,000 – ₹5,000 per year (varies by state)
Application Form: Form B

📌 Who Qualifies?

Restaurants
Medium-scale manufacturers
Cloud kitchens
Distributors
Retail chains with single-state presence

📌 Benefits:

Can sell across districts in the state
Eligible for Zomato/Swiggy partnerships
Can apply for FSSAI annual returns

🔴 5.3 Central FSSAI License

For: Large businesses with turnover over ₹20 crore OR pan-India operations
Issued by: FSSAI Headquarters (Central Authority)
Validity: 1 to 5 years
Fee: ₹7,500 per year
Application Form: Form B + additional documents

📌 Who Qualifies?

Multinational food brands (Nestlé, PepsiCo)
Exporters
Importers
Large warehouses (>50,000 MT)
Food transporters with >2 vehicles
Dairy plants with >50,000 LPD capacity

📌 Benefits:

National operations allowed
Required for exports
Higher brand credibility

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6. FSSAI License Eligibility Criteria

Eligibility depends on two main factors:

Annual Turnover
Nature of Business

Let’s explore both.

💰 6.1 Turnover-Based Eligibility

Annual Turnover	Required License
Up to ₹12 lakh	Basic FSSAI Registration
₹12 lakh – ₹20 crore	State FSSAI License
Above ₹20 crore	Central FSSAI License

📌 Note: Turnover includes all food-related income, including online sales, catering, and exports.

🏢 6.2 Nature of Business-Based Eligibility

Some businesses must get a Central License regardless of turnover:

Business Type	Mandatory License
Importers	Central
Exporters	Central
Railways, Airports, Seaports	Central
Central Government Agencies	Central
Multi-state food transporters	Central
Dairy units with >50,000 LPD	Central
Slaughterhouses with >2 large animals/day	Central

📌 Example: A small spice exporter with ₹8 lakh turnover still needs a Central License.

7. FSSAI License Decision Table

Use this quick-reference table to determine your license type:

Business Type	Annual Turnover	No. of States	Required FSSAI License
Home Baker	₹5 lakh	1 (local)	✅ Basic Registration
Street Vendor	₹8 lakh	1	✅ Basic Registration
Cloud Kitchen	₹1.5 crore	1 state	✅ State License
Juice Manufacturer	₹25 crore	Pan-India	✅ Central License
Food Transporter	₹18 crore	3 states	✅ Central License
Tiffin Service	₹10 lakh	1 city	✅ Basic Registration
Exporter (Spices)	₹6 crore	Export only	✅ Central License
Restaurant Chain	₹15 crore	2 states	✅ Central License
Dairy Plant	₹30 crore	5 states	✅ Central License
E-commerce Seller	₹9 lakh	Online (all India)	⚠️ State License (due to multi-state reach)

📌 Important: Even if turnover is low, online sellers with pan-India delivery must get State or Central License.

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8. Exceptions & Exemptions

Are there any businesses exempt from FSSAI licensing?

✅ Yes, but very few.

🚫 8.1 Fully Exempted Businesses

The FSSAI exempts the following if their turnover is below ₹12 lakh:

Business	Condition
Individual milk producers	Selling directly to consumers
Petty food manufacturers	Home-based, small scale
Cottage food industries	Traditional, non-industrial

📌 But: They must register with the local authority and follow hygiene guidelines.

❗ Note: Exemption does not mean no registration. They still need Basic FSSAI Registration.

🟡 8.2 Partial Exemptions

Farmers selling raw produce (fruits, vegetables, grains) directly to consumers are exempt.
Non-profit organizations (like temples, NGOs) serving food may get relaxed norms but still need registration.

📌 Caution: Once you package or process food (e.g., making jam from fruits), exemption ends.

9. Penalties for Operating Without FSSAI License

Ignoring FSSAI compliance can cost you heavily.

⚖️ Legal Penalties Under FSS Act:

Offense	Penalty
Operating without license	Up to ₹5 lakh fine + 6 months jail
False labelling	Up to ₹10 lakh fine
Selling unsafe food	Up to ₹10 lakh fine + 6 months jail
Misbranding	Up to ₹3 lakh fine
Repeat offense	License cancellation + higher penalties

📌 Recent Case: In 2023, a popular Mumbai bakery was fined ₹2.5 lakh and shut down for 30 days for operating without FSSAI license.

📌 Inspections: FSSAI conducts random raids in markets, malls, and online seller hubs.

💡 Pro Tip: Display your FSSAI license number prominently—it reduces inspection risk.

10. Case Studies: Real Businesses & Their FSSAI Journeys

🧁 Case Study 1: Priya’s Home Bakery (Delhi)

Business: Home-based cake business
Turnover: ₹9 lakh/year
Started on: Instagram orders
Mistake: No FSSAI license
Result: Zomato delisted her. Customer complaint led to municipal raid.
Solution: Got Basic FSSAI Registration in 10 days. Now sells legally.

✅ Lesson: Even home bakers need FSSAI.

🍕 Case Study 2: Urban Crust (Hyderabad Cloud Kitchen)

Business: Pizza cloud kitchen
Turnover: ₹1.8 crore
Initial License: Basic (wrong choice)
Problem: Swiggy rejected listing. FSSAI notice issued.
Fix: Upgraded to State FSSAI License
Outcome: 300% order growth in 6 months.

✅ Lesson: Choose license based on turnover and delivery reach.

🌿 Case Study 3: Green Roots Organic (Export Startup)

Business: Organic honey exporter
Turnover: ₹7 crore
Assumed: “Since turnover < ₹20 crore, State License is enough”
Reality: Exporters need Central License
Consequence: Shipment held at Mumbai port
Fix: Applied for Central FSSAI License urgently
Now: Smooth exports to UAE and Europe.

✅ Lesson: Nature of business > turnover for exporters.

11. Expert Tips: Choosing the Right FSSAI License

Here’s what food compliance experts recommend:

✅ 1. Don’t Under-License

Avoid starting with Basic Registration if you plan to scale. Upgrade costs time and money.

📌 Tip: If you’re selling online, start with State License.

✅ 2. Plan for Growth

Even if your turnover is ₹10 lakh now, if you expect ₹2 crore in 2 years, apply for State License.

✅ 3. Check E-commerce Rules

Amazon and Flipkart often require State License even for small sellers.

✅ 4. Consult a Food License Expert

A ₹5,000 consultant fee can save you ₹5 lakh in fines.

✅ 5. Renew on Time

Late renewal attracts 50% extra fee. Set calendar reminders.

✅ 6. Display License Prominently

On packaging, website, menu, and social media.

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12. How to Apply for FSSAI License – Step-by-Step

📝 Step 1: Determine Your License Type

Use the decision table above.

📎 Step 2: Gather Documents

Common documents:

PAN Card
Address Proof (Electricity bill, rent agreement)
Identity & Address Proof of Proprietor
Layout plan of kitchen/premises
List of equipment
NOC from Municipality (if applicable)
Partnership Deed / MOA (for companies)

🖥️ Step 3: Apply Online

Go to: https://foodlicensing.fssai.gov.in

Create account
Fill Form A (Basic) or Form B (State/Central)
Upload documents
Pay fee

🕒 Step 4: Wait for Approval

Basic: 7–10 days
State: 30–60 days
Central: 60–90 days

📄 Step 5: Receive License

Digital license sent via email. Print and display.

📌 Internal Link Suggestion: FSSAI Registration Process: Complete Guide

13. FSSAI License Cost Breakdown

License Type	Annual Fee	One-Time (5 Years)	Processing Time
Basic Registration	₹100	₹500	7–10 days
State License	₹2,000 – ₹5,000	₹10,000 – ₹25,000	30–60 days
Central License	₹7,500	₹37,500	60–90 days

📌 Additional Costs:

Consultant fees: ₹3,000 – ₹10,000
Document notarization: ₹500–₹1,000
Premises inspection (if required):

💡 Tip: Pay for 5 years to save 20% and avoid annual renewal hassle.

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14. Common Mistakes to Avoid

❌ Mistake 1: Thinking “I’m too small” – No, even home bakers need it.
❌ Mistake 2: Using wrong license type – Can lead to rejection or fines.
❌ Mistake 3: Not renewing on time – Late fee = 50% extra.
❌ Mistake 4: Not displaying license number – ₹25,000 fine.
❌ Mistake 5: Applying in wrong jurisdiction – Delayed approval.
❌ Mistake 6: Ignoring annual return filing – Required for State/Central license holders.

📌 Internal Link: FSSAI Annual Return Filing: Who Must File & How?

15. Conclusion: Get Compliant, Grow Confidently

The question isn’t “Who needs an FSSAI license?”—it’s “Who doesn’t?”

The answer: Almost no one.

From a tea stall in Varanasi to a food tech startup in Bangalore, every food business in India must have FSSAI registration or license.

It’s not just about avoiding fines—it’s about building trust, scaling your brand, and operating legally.

✅ Key Takeaways:

All food businesses need FSSAI license—no exceptions.
Choose license based on turnover and business nature.
Basic Registration for small vendors, State for medium, Central for large/exporters.
Penalties are severe—don’t risk it.
Apply online at FSSAI’s official portal.

🚀 Ready to Get Your FSSAI License?

Don’t navigate the paperwork alone. Consult a certified FSSAI expert today and get your license in days—not months.

👉 Click here to book a free consultation with our food compliance advisors.

Protect your business. Serve with pride. Stay FSSAI-compliant.

16. FAQs: Who Needs an FSSAI License?

❓1: Do I need FSSAI license if I sell homemade food online?

✅ Yes. Even Instagram or WhatsApp sales require Basic FSSAI Registration.

❓2: Can I get FSSAI license for a home kitchen?

✅ Yes. Home-based food businesses can get Basic Registration with proper hygiene.

❓3: What is the difference between Basic, State, and Central license?

Basic: Turnover < ₹12 lakh
State: ₹12 lakh – ₹20 crore
Central: > ₹20 crore or pan-India/export

❓4: How long does FSSAI registration take?

Basic: 7–10 days
State: 30–60 days
Central: 60–90 days

❓5: Can I upgrade from Basic to State license?

✅ Yes. Apply for State license and surrender Basic.

❓ Q6: Is FSSAI license required for food delivery partners?

✅ Yes, if you are a distributor or transporter with multiple vehicles, you will also require a license

❓ Q7: Do NGOs need FSSAI license for community meals?

✅ Yes, NGOs serving packaged or processed food on a regular basis must obtain an FSSAI license.