The food business industry in India is strictly regulated to ensure public health and food safety. Any individual or entity involved in manufacturing, processing, storing, distributing, or selling food products must comply with the Food Safety and Standards Act, 2006. One of the most important compliance requirements under this law is obtaining an FSSAI Licence.

Depending on the size, turnover, and nature of the food business, FSSAI issues State FSSAI Licences and Central FSSAI Licences. Understanding the difference between these two is crucial for legal compliance and smooth business operations.

This article explains FSSAI Licences in detail, including eligibility, documentation, application process, validity, and differences between State and Central FSSAI Licences.

What is an FSSAI Licence?

An FSSAI Licence is an official approval issued by the Food Safety and Standards Authority of India (FSSAI) that allows a food business operator (FBO) to conduct food-related activities in India.

The licence ensures that the food products manufactured or sold comply with prescribed safety, hygiene, and quality standards. It also helps build consumer trust and protects businesses from legal penalties.

Types of FSSAI Licences

FSSAI issues three types of registrations and licences based on business scale:

1. Basic FSSAI Registration

2. State FSSAI Licence

3. Central FSSAI Licence

This blog focuses on State and Central FSSAI Licences, which apply to medium and large-scale food businesses.

What is a State FSSAI Licence?

A State FSSAI Licence is required by food businesses operating within a single state and having a moderate annual turnover.

Eligibility for State FSSAI Licence

A State FSSAI Licence is applicable when:

• Annual turnover is more than ₹12 lakh and up to ₹20 crore

• Business operates within one state only

• Food manufacturing capacity is:

  • Up to 2 MT per day (except milk and meat)

• Dairy units process:

  • Up to 50,000 litres of milk per day

• Slaughtering capacity is limited as per FSSAI norms

Who Needs a State FSSAI Licence?

• Medium-sized manufacturers

• Food processors

• Storage units and warehouses

• Distributors and wholesalers

• Restaurants, hotels, and catering services

• Transporters operating within one state

What is a Central FSSAI Licence?

A Central FSSAI Licence is mandatory for large food businesses or those operating at a national or international level.

Eligibility for Central FSSAI Licence

A Central FSSAI Licence is required when:

• Annual turnover exceeds ₹20 crore

• Business operates in more than one state

• Food manufacturing capacity:

  • More than 2 MT per day

• Dairy units processing:

  • More than 50,000 litres of milk per day

• Businesses involved in import or export of food products

• Operators supplying food to government institutions

Who Needs a Central FSSAI Licence?

• Large food manufacturers

• Importers and exporters of food items

• E-commerce food operators

• Food businesses operating in multiple states

• 100 percent export-oriented units

• Central government agencies and PSUs dealing in food

Key Differences Between State and Central FSSAI Licence

Documents Required for FSSAI Licence

Common documents required for both State and Central FSSAI Licences include:

• Identity proof of proprietor, partners, or directors

• Address proof of business premises

• Passport-size photographs

• Food safety management plan

• List of food products to be handled

• Authority letter or board resolution

• Partnership deed or incorporation certificate

• Layout plan of manufacturing unit (if applicable)

Additional documents may be required based on business type.

FSSAI Licence Application Process

The process of obtaining an FSSAI Licence involves the following steps:

1. Determine the correct licence type based on turnover and business scale

2. Prepare necessary documents as per FSSAI guidelines

3. Submit online application through the FoSCoS portal

4. Inspection by food safety officer if required

5. Grant of licence after verification and approval

Timely professional assistance ensures faster approval and error-free filing.

Validity and Renewal of FSSAI Licence

An FSSAI Licence is granted for a period of 1 to 5 years, depending on the option selected at the time of application.

• Renewal must be applied at least 30 days before expiry

• Late renewal attracts penalties

• Operating with an expired licence is a punishable offence

Penalties for Non-Compliance

Failure to obtain or renew an FSSAI Licence can result in:

• Monetary penalties

• Suspension of business activities

• Legal action under the Food Safety and Standards Act

• Damage to business reputation

Hence, proper compliance is essential for long-term sustainability.

Importance of Professional Assistance

Selecting the wrong licence category or submitting incorrect documents may lead to rejection or delays. Chartered Accountants and compliance professionals help businesses:

• Identify the correct licence type

• Ensure complete documentation

• Avoid penalties and legal risks

• Maintain ongoing compliance

Conclusion

Understanding the difference between FSSAI Licences (State and Central) is vital for every food business operator in India. Choosing the correct licence not only ensures legal compliance but also enhances credibility and customer trust.

Whether you are a growing food business or a large enterprise, timely registration and professional guidance can help you operate smoothly and lawfully in the competitive food industry.