Choosing the Right FSSAI License: State vs. Central

To maintain food safety and hygiene, the Food Safety and Standards Authority of India (FSSAI) oversees the country's food industry. All food business operators (FBOs) must obtain an FSSAI license. Nonetheless, the FSSAI State Licence and FSSAI Central License are the two types of licenses that are offered. Which one is best for your company will depend on several factors.

Understanding the Jurisdiction:

The primary difference lies in the geographical reach of the license. An FSSAI State License is valid only within the issuing state. It's suitable for businesses operating solely within a single state, such as local restaurants, bakeries, or small manufacturers. Conversely, an FSSAI Central License holds nationwide validity, allowing you to operate across India. This license is ideal for businesses with multi-state operations, large-scale manufacturing units, or those planning to expand nationally.

Turnover Thresholds:

FSSAI categorizes businesses based on their annual turnover. These categories determine the type of license required.

FSSAI Registration: Businesses with a turnover of less than Rs. 12 lakhs per year only need an FSSAI registration, not a license.
FSSAI State License: The FSSAI state license applies to businesses with a turnover between Rs. 12 lakhs and Rs. 20 crore per year.
FSSAI Central License: Businesses exceeding Rs. 20 crore annual turnover or involved in specific activities like importing/exporting food or operating across multiple states, require a Central License.

Nature of Business:

Beyond turnover, the nature of your food business can also influence your license choice. FSSAI mandates Central Licenses for specific activities, including:

Food processing units with large production capacities

Importers and exporters of food products
Food packaging and labeling companies
Food testing laboratories
Catering services operating in multiple states

Application Process and Costs:

Compared to a State Licence, obtaining a Central Licence requires a more involved application process. Usually, it calls for more paperwork, clearances, and costly costs. While online applications are required for both licenses via the FSSAI portal (https://foscos.fssai.gov.in/), Central licensing authorities may conduct inspections as part of the Central Licence process.

Final Thought:

Selecting the appropriate FSSAI license is crucial for your food business. Here's a quick recap to help you decide:

FSSAI State License: Perfect for small to medium-sized companies with less than Rs. 20 crores in revenue that operate in a single state.
FSSAI Central License: Choose FSSAI central license if your company operates on a large scale, operates in several states, or fits into one of the specific categories where a central license is required.
Recall that selecting the incorrect license may result in fines and interruptions. See a legal expert with expertise in FSSAI regulations or a food safety consultant if you're unclear about your particular needs. They can help you with the application process and make sure you get the right license for your company's requirements.