FSSAI License

Shedding Light on Food License for Domestic Food Selling Business

calendar03 Dec, 2020
timeReading Time: 5 Minutes
Food Selling Business

If you enjoy cooking then start your own Domestic Food Selling Business. These days you can sell food through apps such as Zomato & Swiggy, so it is a grand chance to turn your talent into a business. For a home-based food business, you need to attain the food safety requirements.

When a person is starting a business of homemade food then it is necessary to obtain licenses and documentations as selling food from home is as equal as selling food from a restaurant. Therefore, one can start listing for various general licenses or permits that are required from the local Food and Health Department.

What are the Requirements for Domestic Food Selling Business?

Food safety officers examine the home businesses to ensure that these requirements are being met. Businesses based on home should comply with appropriate parts of the Food Standards Code which includes the following-

Requirements for Domestic Food Selling Business

Licenses Required for Domestic Food Selling Business

Some of licenses & registrations required for starting a Domestic Food Selling Business are mentioned below. Licenses differ from state to state-

Licenses Required for Domestic Food Selling Business

FSSAI License

FSSAI refers to the Food Authority of India that provides the FSSAI Registration. When a person is starting a business of homemade food then it is necessary to obtain FSSAI license as selling food from home is as equal as selling food from a restaurant. It is mandatory to get a license from the FSSAI to function any food business in India.

Shops and Establishments License

If homemade food selling business employs more than 10 employees then they are required to register under Shop & Establishments Act of the particular State where the business is being established.

Health Trade License

Homemade food selling business requires health trade license because foods products has a direct impact on the health of the public. This license is authorized by the Municipal Corporation or the health department of the concerned State.

Environmental Clearance

Homemade Food business is considered for smoke emissions from the cooking process and washings of food waste. Environmental Clearance license can be obtained from the Pollution Board of the concerned State. This license is provided after the concerned authority estimation on the accomplishment and impact of the business on the environment.

Signage License

A signage license gives permission to any food business to promote its business by putting up with any signs, words or pictures. Your food business is required to apply to the local Municipal body for Signage License if you are willing to start dabba system and delivery of foods. So you are required to put up any sign or pictures in your dabba.

Society’s NOC

NOC (No Objection Certificate) from the society is required to start your homemade food business. Obtaining NOC from society is a necessary because if you are starting any business your nearby residents can raise an objection.

Process to Register for Food License in Domestic Food Selling Business

The process to register for Food License in Domestic Food Selling Business-

Complete a Simple Form

You require filling FSSAI application Form A or Form B depending on the turnover of the business and giving details related to the food business.

First you are required to obtain Basic FSSAI only by filing of FORM A, if your turnover increases then you are required to fill in FORM B.

  1. Fill up Form A– When the business Turnover is Below INR 12 Lakhs for Basic FSSAI Registration.
  2. Fill FORM B – When the business Turnover is INR 12 Lakhs to INR 20 crore for State FSSAI License or Above INR 20 Crore for Central FSSAI License.

Documents and Submission

You need to submit the necessary documents and the application process will proceed for further steps. The basic documents necessary for Food License in Domestic Food Selling Business are as follows-

  • Form A or Form B duly completed and signed;
  • 2 Passport Size Photograph;
  • PAN Card of the Food Business Operator;
  • Proof of ownership of the Premises;
  • Partnership Deed;
  • Certificate of Incorporation;
  • List of food items the unit will process;
  • Declaration Form;
  • Authority letter;
  • Form IX.

Your FSSAI License application with other required declarations are filed to the local FBO & will take about 10 days.

FSSAI license Issued

You will get a mail regarding the license which will act as an online food license after follow ups with the safety department. This process will take about 2-4 days and your FSSAI License and certificate will be issued.

Validity Period of Food License in Domestic Food Selling

Validity of FSSAI license is from 1 to 5 years. As per the FSSAI regulations, the domestic food selling operators are required to apply for the renewal of the license within 30 days and it has to be done before expiry of the License. FSSAI renewal application filed after the expiry date is required to pay a late fine of INR 100 per day. Hence all home food selling business are required to track and make sure that the FSSAI license is valid.

For FSSAI License Renewal, the Domestic Food Selling Business needs to apply 30 days before the expiration of the existing license. If your domestic Food Selling Business fails to obtain a license before this time frame they are required to pay penalty for late filing. Therefore, it is better to renew the License in the prescribed time.

Penalties for Not Registering for License 

If any Food Business Operator is found Non-Compliant with the requisites of the FSSAI regulations then they are punished for not filing for the License. The penalty structure is standard and is applicable to everyone. FSSAI penalties for a non-compliant of Food Business Operator are listed below-

  1. If the Food Business Operator is running its business without applying for the FSSAI certificate then it is punishable under the FSSAI Act. The Food Business Operator can face imprisonment & a fine up to INR 5 lakhs.
  2. If any food business is selling any poor quality food items then it can be punished for fine up to INR 5 lakhs and the responsible person for selling will be held responsible.
  3. The FBO selling misbranded goods will get punished by an amount up to INR 3 lakh.
  4. Food Items containing any exotic substance a fine of INR 1 lakh can be levied.

In extreme case if a death has occurred due to consumption of any particular Food Item then a penalty to the responsible Food Business Operator can be extended up to INR 5 lakh or even imprisonment, depending on the severity of the situation.

New Notification- Domestic Food Sellers to Face Penalty without FSSAI License

The State Food Safety Department[1] has issued a notification for domestic food businesses recently. According to it any unregistered Domestic Food Selling Business will have to pay a fine of up to INR 5 lakh with imprisonment up to Six months. The fine or imprisonment term can differ depending up on the nature and type of the offence occurred. 

Conclusion

In a Domestic Food Selling Business, you need a food license from FSSAI regulations to sell homemade food. Therefore, one can start listing for various general licenses or permits that are required from the local Food and Health Department.

Homemade food is measured as the Food Business & expected to be registered or get a FSSAI License.

Read our article: FSSAI Restrain Licensing Authorities from Demanding Immaterial Documents from FBOs

Sakshi Srivastava

Sakshi has pursued B.B.A.LL.B.(IPR Hons.). She is an avid reader and is keen to gather and share her knowledge on the subjects relating to IPR, Company Law and GST. Priorly she has worked as a legal researcher and vide her articles she aims at improving the core knowledge of the subjects to the masses.

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