FSSAI Registration vs State Licence vs Central Licence

If you make, store, transport, distribute or sell food in India, the Food Safety and Standards Act generally requires you to hold either an FSSAI registration or an FSSAI licence. This applies whether you run a home kitchen selling through delivery apps, a small bakery, a restaurant, a warehouse or a manufacturing unit. The system has three tiers, and applying under the wrong one is a common cause of rejection or later trouble.

The three tiers at a glance

The tier you need depends mainly on your annual turnover, the type of food business activity and, in some cases, your location and scale of operation.

• Basic FSSAI registration is intended for petty food businesses, such as small retailers, hawkers, home-based producers and small stalls, with turnover up to the prescribed limit.
• State licence generally applies to medium-sized businesses above the basic registration limit and up to a higher prescribed turnover, and to certain activities regardless of turnover.
• Central licence generally applies to large businesses above the state licence limit, and to specified categories such as importers and businesses operating in more than one state.

The turnover limits, and sometimes production capacity limits, are set by regulation and have been revised in the past. Always check the current figures for your category before applying.

Basic registration: for petty food businesses

Basic registration is the simplest of the three. It is generally meant for small operators whose turnover currently falls within the petty food business limit, including:

• Small retail shops, tea stalls and snack vendors
• Home-based food businesses and cloud kitchens at a small scale
• Temporary stalls and hawkers
• Small manufacturers or processors below prescribed capacity limits

The application is made in the prescribed form on the official FSSAI licensing portal with basic identity, address and business details. A registration certificate is issued once the application is accepted, and the authority may inspect the premises.

State licence: for growing businesses

Once turnover crosses the basic registration limit, a state licence is generally required, as long as the business remains within the state licence limit and does not fall into a category reserved for central licensing. Typical holders include mid-sized restaurants, caterers, distributors, storage facilities and manufacturers operating in one state.

A state licence involves more documentation than registration. Depending on the activity, authorities may ask for a layout plan of the premises, a list of equipment, details of food categories handled, a food safety management plan, water analysis reports and a no-objection certificate from the local body. An inspection before grant is more likely at this level.

Central licence: for large or specialised operations

A central licence is generally required for:

• Businesses with turnover above the state licence limit
• Importers of food, including food ingredients and additives
• Food businesses operating in more than one state, usually for the head office or registered office
• Businesses operating at ports, airports, railways and certain central government premises
• Certain exporters and e-commerce food business operators
• Specified categories such as certain health supplements and novel foods

Each additional premises may still need its own state licence or registration, depending on its activity and turnover. A business with a head office in one state and kitchens in several others, for example, typically needs to think about each location separately.

Documents commonly required

The exact list depends on the tier and the type of activity, but you should generally be ready with:

• Identity proof and photographs of the proprietor, partners or directors
• Proof of possession of the premises, such as a rent agreement or ownership document
• Constitution documents for partnerships, LLPs and companies
• A list of food products or categories you plan to handle
• For licences, the layout plan, equipment list, water test report where applicable and a food safety management plan
• Any other approvals required for your activity, such as a local trade licence or pollution-related consent

Obligations after you receive it

• Display: the registration or licence certificate, or its number, generally needs to be displayed at the premises and, in many cases, printed on food packaging.
• Validity and renewal: registrations and licences are issued for a chosen period within the permitted range and must be renewed before expiry. Operating on an expired licence can attract penalties.
• Modifications: changes in address, products, capacity or ownership usually require an application for modification.
• Annual returns: certain licence holders, particularly manufacturers and importers, are currently required to file annual returns within the prescribed time.
• Hygiene and labelling: the business must continue to meet food safety, hygiene and labelling standards, and may be inspected at any time.

Choosing the right tier

Estimate your expected turnover honestly, list every activity you carry out (manufacturing, storage, retail, catering, import and so on) and note every location. If your business is close to a limit or growing quickly, it may be sensible to plan for the next tier rather than apply for one you will outgrow in a few months. Where more than one category could apply, the stricter requirement generally prevails.

Before you proceed

FSSAI turnover limits, category rules, fees and documentation requirements are revised from time to time, and the licensing authority decides every application. Confirm the current requirements on the official portal or seek advice specific to your food business before applying. Our team can help you identify the right tier and prepare the application.

Written by the Cine Craft Advisory editorial team.