FSSAI State License for Manufacturer, Processor, Trader, Supplier etc.
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If you are a small to medium-sized Food business operator or manufacturer running food business houses like, distributors, storage units, transporters, etc. then obtaining FSSAI State License is required for you. The State License is issued by the State Government of different states. A Business operator with an annual turnover between 12 Lacs to 20 crores is required to obtain the form B and apply for the State License. If you are an operator with an annual income below the above-mentioned amount, then you are only supposed to go for “FSSAI Registration” (basic one). To read about the “FSSAI Registration” you can visit us at: https://complianceease.in/.
FSSAI State License Eligibility
Once an FBO reaches a position where it has a good annual turnover then it becomes mandatory to obtain an “FSSAI State License. Generally, FBOs with small and medium-sized manufacturing units, marketers, traders, transporters, etc., need to have FSSAI state registration from the state government. The Food Business Operators with an annual turnover between Rs 12 lakh to Rs 20 crore are only eligible for State Licenses.
Other conditions of Eligibility
The manufacturing units must have a capacity of 2MT per day.
The dairy units should handle business up to 5000 litres per day.
All the catering businesses like, 3-star hotels and above, repackers, relabelling units, clubs, canteens, etc. irrespective of their turnovers need to apply for the license.
To have a state License the FBO must have the business running only in One state.
NOTE: If an FBO has a business running in 2 or more states then it is eligible for a “central License”.
List of Expected Business Eligibility for State Food License
Following are certain expected types of food businesses that may fall into the category of State License:
SupplierWholesalerDistributorRetailerFood Vending establishments or DhabaClubCanteenRestaurantsProprietary FoodsVegetable Oil Processing and Production units Production.4-star rating Hotels or less.Storages with less than 50,000 metric tonnes capacity on yearly basis.Milk chilling Dairy units with a capacity of 500 to 50000 litres, etc.General Documents RequiredPhoto identity proof of the FBOs.Business Establishment certificates, i.e., certificate of incorporation, shop and establishment license, the partnership deed, or other business registration certificate.Proof of business premises possession, such as a rental agreement, a letter of authorization from the rented premises' owner, utility bills, and so on.Food safety management plan.List of manufactured or processed food productsBank account detailsSupporting documentation includes a letter of approval from the municipality or panchayat, a letter of health clearance, a copy of the manufacturer's license, and so on.Specific Documents Required for State LicenseA list of the Business partners, owners, and executive members, together with their full addresses and contact information.Applicant Latest Passport-sized photograph.Identity proofs like; voter ID card or Aadhaar Card or Pan Card or Passport Id.Address Proof, Mobile No., Telephone No., Mobile Bill, Electricity Bill, or Gas BillPhotocopy of Property papers. (Only if owned)Copy of Rent Agreement and Landlord’s NOC (if rented)Partnership Deed/ MOA/AOA of the firmA copy of the certificate obtained under the Co-Op Act – 1861/Multi-State Co-Op Act – 2002 in the case of Co-Operatives.NOC from the manufacturer (in case of Distributor)Information on Source of raw materialNOCs from Municipality or local bodyE-Code document issued by DGFTForm IX Nomination of persons by a companyAny other documents as required by FosCosFSSAI State Registration Fees
The applicant/FBO is required to pay registration fees which are mandatory to complete the application and generate your license while submitting the FSSAI State License form.
FSSAI State License Fee ranges between Rs.2,500 to Rs.5,000 (Depends on the type of business carried out)
The applicant can follow the following steps to file for the State License Application:
1: Arranging the aforesaid documents and filing of application with Form B.
2: Submission of Form-B with online portal FoSCoS with right fields.
Payment of the prescribed Fees as applicable with the years selected.The FoSCoS does the scrutiny of the application and all submitted documents.In some cases, an on-site inspection will be conducted by FSSAI’s officials.6: Finally, FoSCoS will issue the FSSAI State License
(NOTE: The relevant documentation as asked in the form must be submitted with the FSSAI Form-B. The documentation must be uploaded to the FoSCos portal during the application process.)
Benefits of Procuring FSSAI State Food License
If you are applying for the FSSAI State License, then it’s important to ensure why is it important or beneficial to have one. Well! Indeed, FSSAI State License Form is not a choice to fill by the FBOs rather it’s an obligation and mandatory by regulations. But to know why it’s been made compulsory to apply for one is necessary.
It is important to note that a license can bring the following benefits:
FBOs can use the FSSAI symbol on their product package making customers assured of the good quality products you generate. Without the State license, the FSSAI logo can’t be used.Immense Creditors or Investors will seek interest in your business after looking at the surety of your good products, high-income generation, and legal benefits.Goodwill and Reputation BuildingLarge Food TendersZero FineZero Risk of Disqualification due to low-quality productsConsequences of Non-Compliance
If you are planning to skip applying for FSSAI State License and run your business under the nose without anyone noticing or thinking this legal compliance work is not for you. Well, yes! You are mistaken. To make all your myths and misconceptions go away we are mentioning the following consequences of non-Compliance below:
The FSSAI Symbol: You are not permitted to use the FSSAI symbol. While a local food business may be able to get away with not having this logo, as customers become more knowledgeable, these tiny validations might go a long way in the food industry's cutthroat competitiveness.Have trouble getting credit: Most investors, banks, and lenders will run a preliminary check to verify if you have all your necessary licenses. Any company that intends to expand must apply for a license based on anticipated sales/capacity.No Food-tenders: Because most of these changes would mention explicit requirements of a legitimate FSSAI State License, not having an FSSAI State License may make it more difficult for you all to register to corporate events, fulfill bids, or advance to a larger set-up.Lack of risk reputation:Although you may be able to save money on the annual charge (which ranges from 2000 to 5000 dollars), it may be difficult to demonstrate to your clients that you maintain high levels of sanitation in your procedures if you don't have this license.Liability: If a person or a food company operator (excluding those exempted from licensing) is needed to obtain a license but manufactures, trades, sells, or sells any foods product without one, they may be sentenced to up to 6 months in prison and punishment of up to Rs. 5,00,000 in fines.Non-adherence to regulations will bring no good to your business. Legal compliances indeed require prior knowledge over the documentation, steps, and drafting works which an individual running business may find difficult to keep up with.
SIGNIFICANCE OF FSSAI DEVELOPMENT IN INDIA
India is the 2nd largest food-producing country in the world. It is ranked 1st in the sector of milk production and pulses production. When we talk about products like; rice, wheat, sugarcane, fruits, fish, and vegetables it is 2nd largest in the raking. India has its food production reaches in the world market known for high, rich quality products at affordable prices which makes it very safe and highly profitable for the producers, operators, and investors to dig in. It won’t be shocking to mention that by 2025, India’s Food Industry is undoubtedly expected to reach a worth of half a trillion dollars.
In such a situation it’s obvious that Food Industry Operators are attracted more and more towards setting up a smooth, risk-free, highly runnable, and profit-giving food business. To do so it's also important to keep a keynote that the legal compliance work is never compromised to act as a barrier to your food industry success. Now the question arises what Legal Compliance works are required to kick start your food business and who or which authority will be responsible for the scrutiny or supervision.
The Food Standards and Safety Authority of India (FSSAI) is the leading statutory authority empowered by the Ministry of Health & Family Welfare, Government of India. The main functions of the authority are to control, regulate and supervise the safety of food and related products. It would be important to mention that as per FSSAI rules and regulations, all food business operators must obtain food licenses before starting their business. Certain rules, regulations, and statutes have been laid down to determine the standard, quality, hygiene, and quality of the food products by performing certain science-based standard tests and quality checks by a team of authorized officials. FSSAI makes sure that sub-standard, unhygienic, and toxic food doesn’t reach the customers which can affect their health at large. These quality checks and the bombing of governmental authorizes upon the industries may seem risky and unsatisfactory to the Food Business Operator. Hence, to keep things in line the operators need to have an FSSAI State License giving an add-on advantage over an increase of the customer baseline with the increase of the healthy food items. FSSAI State license is needed to officially open a business. It is interesting and beneficial for the operators to keep a note that the cost of the Food license is very minimal which an average operator can also afford. But if someone fails to pay the fees on time or is found indulged in some malpractices will have to undergo penalties. The FSSAI State license gives an edge over the other operators as you can even use the FSSAI logo in your packings for marketing you a good quality product. You as an operator are keen to seek a good name in the market and produce prime quality products but it's also important for you to have a good investment or loan after gathering the FSSAI State License. The license is mandatory to have because upon the absence of the state license you may be charged with fines.