How to acquire an online food business license?

Starting any business requires the individuals to follow certain basic requirements such as obtaining a FSSAI License. A license provides a company to undertake business activities with the approval of the Government of India. An online food business license is a common type of license in the country which is provided to individuals who follow certain eligibility requirements, registration process and documents all of which will be discussed in the article.

What are the objectives of a Food Business?

The purpose of several food businesses in India is different. For some it is to provide food at reasonable rates and for others it is to give a better platform to restaurants, especially the small and medium food stalls and restaurants.

What are the licenses and documents required for starting an online food business in India?

Documentation is a significant requirement and all the documents must be prepared and submitted to the authority before the time frame provided to them.

• Federal Employer Identification Number for the purpose of taxation
• Food service license from the state or town where the food business will be set up
• Certificate of occupancy
• Food Safety and Standards Authority of India (FSSAI) License
• GST Registration
• Health Trade License
• Signage license

Documents required for BASIC FSSAI Registration:

• Photographs of all the applicants, business partners
• Aadhaar card of the business owner
• A scanned copy with a signature of the applicant
• Details with regards to the business activities
• PAN Card of the applicant
• Declaration that includes the Business place

Documents required for STATE FSSAI License:

• GST Number of the food business
• Details of several business activities
• A list that contains the names of the food products that is going to be used in the business
• Am authorization letter of the consultant
• A declaration form
• Aadhaar card of the Business owner
• A scanned copy with the signature of the business owner
• A scanned copy of applicant’s photograph
• AOA/MOA/Partnership deed
• Registration Certificate of vehicles which includes a declaration
• Electricity bills of either the business, Factory or Warehouse
• NOC from Brand owner
• Rent agreement of the building where the business will be set up
• NOC from the Property owner in case the property is rented

Documents required from Manufacturers for FSSAI Registration

The food manufactures are also required to provide certain documents:

• A list of food products that will be manufactured in the factory
• Water Ground report
• Product Testing report
• Blueprint of the Factory
• A list of machines along with the pictures which will be used in the factory for food manufacturing
• An audited balance sheet (only if the applicant has applied for state or central license)
• An Import Export Code(IEC) if the FSSAI license is required for Export / Import purposes (if the applicant has applied for state or central license)

What are the types of FSSAI License in India?

The food license is divided into three basic types of licenses which are basic license, State License and Central License:

• Basic FSSAI Registration: Food business operators that are operating on a small scale that includes distributors, storage units, retailers, transporters, manufacturers must register as per the guidelines mentioned under the Basic FSSAI. The State Government issues Basic FSSAI License the validity of which is for a time period of one year to five years. This License is applicable to the businesses that receive an annual turnover of less than 12 Lakhs.
• State FSSAI License: Food business operators that operate on a small scale or operators that are medium-sized transporters, manufacturers, marketers, distributors must obtain state FSSAI license as per guidelines mentioned by the Government. The concerned State Government issues these types of licenses to those establishments that have an annual turnover of more than Rs 12 lakhs. Moreover, the minimum duration of State FSSAI license is one year while the maximum is 5 years.
• Central FSSAI License: Food business operators that have a turnover of more than Rs 20 crores such as large export-oriented units, manufacturers, importers are required to obtain a Central FSSAI License. If a food business operator has branches or offices in several states, then they must obtain a central license. The Central Government issues this License that has a validity of a minimum period of one year to five years.

What are the eligibility requirements to obtain an online food business License?

The minimum requirements that must be followed by food business operators are as follows:

• Wholesalers, distributors, suppliers and retailers, food vending institutions, canteens, hotels, restaurants etc. with an annual turnover of less than Rs 12 lakhs.
• Retailers selling food items with limited business activities.
• Small producers manufacturing their own products
• Temporary shop selling food products
• Businesses involved in selling food at a social group
• Cottage industries associated with food products

What is the process of registration for establishment of an online food business in India?

The registration process to obtain an online food business license has some simple steps that are followed by the individuals who are interested in starting an online business.

• Filing of Form B: An application in Form B must be filed to the Food and Safety department on the official portal of FSSAI.
• Affix a self-declaration: The application must be annexed with a self-affidavit. After the preparation of all the documents, it must be submitted to the FSSAI department.
• Issuance of Food License: The authority then evaluates the application form along with the documents, if he approves both the documents and the application form error-free and approves the application within seven days, the license will be issued.
• Arrival of online food business license: FSSAI Authority will grant a Registration Certificate along with a registration number once it is approved.
• Renewal of License: Since FSSAI Licenses are valid for a time period of minimum one to five years, the Licensee must apply for the renewal after the expiry of the license.

Conclusion

Obtaining an online food business license is easy if all the steps are followed and all the rules and regulations are followed in a proper manner.