Do you aim to establish a restaurant in India and know aboutFSSAI License – fssai registration? But you have no idea where to start or how to get started? Required licences to start a restaurant in India are discussed in this article. It would be easier for you to set up a legally valid restaurant in India if you grow acquainted with such a need. Please keep in mind that the number of licences required to open a restaurant varies by state.

Mandatory License Required to Open a Restaurant in India

A list of fundamental legal licences that must be obtained to open a restaurant in India is as follows:

FSSAI License and fssai renewal

The FSSAI licence is one of the most important licences to get while starting a restaurant in India. The FSSAI is an apex government body that oversees non-profit organisations’ operations in India. The licence of this organisation serves as legal clearance for food businesses, including restaurant owners. Restaurants that have been certified by the FSSAI are given a higher level of respect than those that have not. Customers increasingly prefer to dine at places that have all of the required legal permits, including a food licence.

An Overview on the Type of FSSAI License 

Based on the annual sales generated by a restaurant, FSSAI licenses are divided into three categories.

The FSSAI issues FBOs in India with the following necessary licences:

1. FSSAI Registration: For FBOs with a turnover of less than INR 12 lakhs per year, FSSAI registration is required.

State License: FBOs with a turnover of more than 12 lakhs but less than 20 crores should apply for a state licence. The annual fee for this licence has been set at Rs 2000.

1. Central License: For FBOs with annual sales above 20 crores, a central licence is required. This license’s cost has been set at INR 7500 per year.

The FSSAI licence typically has a 1- to a 5-year validity period.

How to submit an application for FSSAI license & fssai renewal? 

The FSSAI will perform a rigorous verification procedure after receiving an e-form and application fee. During the application submission process, the applicant must upload a soft copy of the papers listed below.

Documents Required

• Valid email address and phone number
• A government authority grants proof of identity and address.
• The Restaurant Owner must fill out and sign an FSSAI form.
•  list of the stakeholders, as well as verification of their identity.
• Possession of the location/premises must be proven.

Plan for Food Safety Management Declaration

• Municipal Corporations or local bodies must provide a certificate of no objection (NOC).
• Kitchen Layout Plan
• ISI-certified organization’s water testing report Food Category List
• Affidavit of Proprietorship/Partnership Deed (in the event of a partnership firm or a business that operates in many locations)
• Employees’ medical documents
• Apparatus to be utilised

It may appear time-consuming, but if the documents are uploaded correctly, the licencing request will be handled quickly and without problems.

FSSAI License Renewal: Renew Food License Online

• The process of renewing the validity of an FSSAI Food License is known as FSSAI License Renewal.
• Registration with the FSSAI can be extended for up to 5 years.
• Within 45 days, your licence will be renewed.

FSSAI License Renewal Points to Consider

• Here are some key factors to remember throughout the FSSAI renewal process:
• Failure to renew the FSSAI licence may result in a penalty.
• The FBOs existing Food License will be placed in the Renewal Bin 60 days before its expiration date. When an FBOs licence is in the renewal bin, they should apply for renewal as quickly as possible.
• FBOs should apply for a renewal of their food licence 30 days before it expires. In the event of a delay, the Food Operator will be fined a penalty of $100 per day.
• If there are any changes to the renewal application, make sure to contact the appropriate officer, who may be able to give you a tracking ID receipt number.
• To proceed with the FSSAI License renewal, you must accept the warning letter; else, your application will be considered incomplete.

Eating House License

Any business wishing to create a public diner where food and beverages are provided to clients must first get an eating house licence. If you want to open a restaurant, you must file a license application with the state or local government.

Documents required to obtain an Indian Eating House License

• The Fire Department issued a NOC (If the seating capacity is more than 50)
• Photographs, as well as a detailed site plan
• Restaurant documents and the owner’s NOC
• Trade license

• License from the FSSAI.
• MCD/NDMC/DCB/Indian Airport Authority photocopy
• a copy of your business licence, as well as a copy of your current fee receipt
• Installation of CCTV camera recording devices with storage of 30 days’ worth of recordings is the subject of this project.

How to get an eating house license?

• The official portal of the local or state licencing policing commissioner can be used to get an eating place licence.
• Applicants must register for an account on this website and complete the necessary application steps. 
• Applicants will be prompted to provide required papers for verification reasons during the application process.
• The cost of obtaining an eating house licence is less than the cost of registering with the FSSAI.
• The charge for obtaining this licence is Rs 300, which must be paid by all applicants.

HealthTrade License

One of the most important licences for opening a restaurant in India is a health trade licence. In India, obtaining a health licence is needed to operate a business that deals with goods and services that influence the health of the general public. 

There are two types of health trade licences:

• Health Care License
• Health Trade license 

To receive a health trade licence in India, you must submit the following documents.

• Three copies of the floor plan 
• The floor layout is duplicated three times.
• Utility bill copy
• NOC from the landlord and a lease agreement
• Proof of Sewer Connection
• Evidence of Property Tax
• NOC from the local cops
• The restaurant’s floor plan
• Rs.100 indemnity bond
• Structural Engineer’s Certificate of Structural Stability
• The certified lab issues a water testing certificate.
• Employee Medical Certificates
• Certificate for Lal Dora ( for Delhi region)

How to apply for a Health Trade license?

A health trade licence can be obtained from the State’s Municipal Corporation in exchange for a properly completed e-form and normal costs. The application can be submitted via the Municipal Corporation online. If a restaurant owner decides to operate his or her business without a Health trade licence, the owner will face serious fines under Municipal Corporation regulations.

Liquor license

Serving liquor to a consumer without a liquor licence is a crime in the eyes of the law. Obtaining a liquor licence is a time-consuming and difficult process. The licence may be obtained through the local exercise commissioner, and the necessary applications are accessible to the state government online.

An overview of the several types of liquor licences that are currently available;

• L-1 licence – An L-1 licence is required for the wholesale delivery of Indian-made liquor to other licence holders.
• L-3 licence: This is required for hotels that serve foreign liquor to their customers.
• L-5 licence: An L-5 licence is required for hotels that serve liquor in their in-house bar.
• L-19 licence: A L-19 licence is required for registered clubs that serve foreign liquor to their members.
• L-49A licence: An L-49A licence is necessary for providing liquor at parties or weddings in the Delhi region.

Tavern License 

A Tavern License is a legal requirement for businesses that make 50% of their earnings from the selling of alcoholic beverages.

Beer & Wine License: A Beer & Wine License allows restaurant and bar owners to serve moderately alcoholic drinks such as beer and wine.

Restaurant License: Establishments that earn less than 40% of their income from the sale of alcohol should get this licence from the appropriate authorities.

Personal Bar licence: A personal bar licence allows individuals to trade alcohol on behalf of a licenced company.

 Documents required for LIQUOR license

• Address proof for a restaurant
• A genuine copy of the application and business information
• The Fire Department has issued a certificate of no objection.
• NOC from the municipal corporation
• List of the company’s active directors
• AOA & MOA (if the applicant is an OPC, private limited company or Public limited company)
• Copy of the most recently filed IT returns Applicant photographs
• Affidavit stating that the petitioner has no criminal record

GST Registration

Any company, including dining places and restaurants, with an annual turnover of more than Rs 20 lakhs is required to register for GST.

GST Rates for restaurants

Stand-alone restaurants with air conditioning are subject to a 5% GST.

Hotels with in-house restaurants that charge more than Rs 7500 a night are subject to the 18% GST rate.

GST registration may be obtained through the GST site by completing an online application that requests the following information:

• Details about the applicant
• Contact information and an email address
• PAN card
• Proof of the Business Location
• a copy of the lease or rental agreement
• Legal bank account
• Provisional ID and password obtained from the state’s VAT department

Environmental clearance license

Restaurants are legally compelled to implement necessary environmental protection measures, therefore obtaining an environmental clearance licence is critical (CEC). After completing the environmental evaluation questionnaire, this licence can be obtained from the Ministry of Environment and Forests.

Fire safety license

In all instances, all restaurants are legally obligated to defend the interests of the end-users. They are required to follow fire safety regulations under this jurisdiction. After completing and submitting the application, the Fire NOC may be obtained through the respective state’s Fire Department portal. The licence will be issued by Fire Department officials after an in-depth verification of documentation and an on-site examination of the premises.

Lift license 

For enterprises such as the restaurant that are located in multi-story buildings, a lift licence is required by law. Restaurant operators must get a Lift Clearance License to guarantee that lift operations comply with safety regulations. The Electrical Inspectorate in the Labor Department can issue a lift clearance licence.

Signage license

You will need a Signage licence if you want to advertise your restaurant using words, photos, or symbols. The Municipal Committee of the appropriate state can provide this licence to restaurants.

Music license

If you want to use music and movies to entertain your customers at your restaurant, you’ll need a music licence. The Indian Performing Rights Society can provide you with this licence if you fill out the required application.

Shop and establishment license

Another regulatory need for business establishments in India is a shop and establishment licence. Every business organization in India, including restaurants, is required to get this licence under the Shop & Establishment Act. The Department of Labor of the relevant state provides a shop and establishment licence.

The Shop and Establishment Act regulates the following aspects of commercial establishments: 

• opening and closing hours 
• Leaves with pay
• Employees working hours 
• Hygiene requirement

Insurance Policies for Restaurants

Although it is not the responsibility of the restaurant owner to purchase insurance, you must do so on the four conditions listed below.

• Public Liability
• Product Liability
• Fire Policy
• Building & Asset
• Any licenced insurance provider can protect a restaurant.

Conclusion

Don’t be frightened by the long list of licenses needed to run a smooth business. You shouldn’t have any difficulty acquiring these licences if you have the requested documents on hand. So there you have it: a complete overview of the permits that must be obtained to start a restaurant in India. For fssai certificate, fssai license, fssai renewal and fssai registration, please feel free to contact MUDS, if you require any further information.

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Since the inception of the green revolution after independence, India has been one of the biggest exporters of food and grain to the world. In our country, exporters of food products need FSSAI License to export food products to other countries. Considering the profitability in the business of exporting food products, many vendors have applied to get FSSAI certificates. In this text,  we will look at the various requirements associated with engaging in food products export from the country.

Significance of FSSAI

Countries generally welcome food products with standard certification of FSSAI. The products that are deemed safe and fit for human consumption by FSSAI are preferred by importers. Thus, exporters generally prefer to meet the guidelines of the FSSAI and the standard laid down by them.

Export of unsafe or substandard food products not only impacts the health of the importing nation but also the global image of India as an exporter of products. It can thus affect our relationship with other countries and may lead to a halt in future associations in the long run. Thus, getting this License has been made compulsory for those dealing in food products. It gives assurance to both the importers and our government that the quality and hygiene standards have been met for the food products that are exported from our country.

Overview of FSSAI Food Licensing

It is a common form of certification that assures food is fit for human consumption. It also ensures there are no toxic or unwanted elements present in the food. Being a regulatory body working under the Health Ministry, FSSAI grants approval to exporters to conduct the export business.

With the FSSAI registration for export business, exporters of food products are also needed to acquire the import-export license and the NOC. Once the exporter receives government approval, then he can move ahead with exporting products whichever country he wants.

Food products that an exporter wants to export are required to be registered as a distinct entity, and the whole process of registration and approval might take some time. One may also apply for an FSSAI State License or Central License in case they want to pursue exporting food products outside the country. It should be noted that only certified food products can be exported from India. Moreover, any person starting a business of exporting food products is required to understand the complete procedure. They should also know the labelling requirements for food exports and relevant documents.

Who Requires FSSAI?

As per the norms of the Food Safety and Standard Act, 2006, the following entities should obtain FSSAI registration:

• All types of food manufacturer
• Wholesale food business operators
• Food Storage Unit
• Online food business operator
• Food Packaging Unit
• Food traders
• Exporter and importer of food products
• Caters or hotel raw food material suppliers
• Transporter and distributors
• Food product retailers

Types of FSSAI License

A Food Business Operator or (FBO) has to apply for the license once his business exceeds a particular turnover. The type of license depends on the valuation of business and the type of business activity performed by the Food business operator. 

There are three major license types:

Basic FSSAI Registration

This license is perfect for small vendors or food business operators. It is also referred to as the FSSAI Basic License. It is provided to FBOs with an annual turnover below 12 lakh rupees. All small size industries, retailers, storage units, etc. are included in this.

State License

This type of license is for food manufacturers or suppliers with an annual turnover of 12+ lakh rupees to 20 crore rupees. This limit of turnover is similar to the limit for an FSSAI state manufacturing license or an FSSAI State trading license. All medium size industries, retailers, suppliers etc. are included in this.

Central License

The Central FSSAI License is compulsory for food businesses with an annual turnover of Rs. 20+ crore. All big manufacturers, export-oriented units, importers etc. are included in this. 

FSSAI Food License Registration procedure

Procedure to Apply for Central License

• Check the eligibility criteria and if found eligible to apply for a central license, then fill the application.
• The data entered in the form must be accurate as per the document.
• The products mentioned must be approved from FSSAI Act, 2006.
• Choose the time period for which one wants to take the license.
• After the form is filled, pay the required fee.

Procedure to Apply for State License

• Check the eligibility criteria to ensure eligibility for the state license. Fill the application form to get a state license.
• The data entered in form has to be authentic.
• The products applied for in the license must be approved under the FSS Act, 2006.
• Choose the time-period for the license.
• Pay the prescribed fee after the form is filled.

The step by step guide below will help one understand the procedure to receive the license:

• Firstly get the company registered as a legal entity;
• Post that, get the Import Export Code;
• Apply for a No-Objection Certificate concerning the quality of food and other regulating compliances presented by the FSSAI. These norms take into account the health of consumers and related safety concerns from food;
• Get the approval related to the food product;
• In the end, obtain an export license from the central authority of Licensing.

Documents Required for Different FSSAI License

Documents for FSSAI basic License

• Passport-size photograph of the applicant;
• ID proof and PAN Card
• Address Proof
• Copy of property papers, in case the property is owned by the applicant
• Copy of rent agreement and NOC from the landlord if the property is on rent.

Documents for FSSAI State License

• Form B completed and signed by applicant
• Complete Layout of the location
• Contact details and the list of administrators/directors/partners
• Proof of possession of premises
• Details of the type of equipment used;
• List of food categories to be applied for manufacturing
• Authority letter with name and address of applicant
• NOC and copy of the license granted to manufacturer
• Food safety management system plan or related certificate.

Documents for FSSAI Central License

• Form B filled and signed by the proprietor or the applicant
• Layout of the location
• Contact details with list of directors/proprietors
• Details of the type of machinery or equipment used
• Proof of possession of premises (if any)
• NOC and copy of the license
• Analysis of water report to be used in the process
• Food safety management system plan or certificate
• Source of raw materials for organic meat, milk, etc.
• NOC from the municipality and local body
• NOC/PA issued by FSSAI
• IE code by DGFT for importers
• Supporting documents for turnover with transportation proof
• Declaration form.

Advantages of Getting an FSSAI License

The food business with FSSAI certification enjoys a number of benefits:

• Increased trust among perspective and established customers.
• The FSSAI logo creates goodwill among the consumers.
• It ensures the food products meet safety standards.
• Leads to business expansion.
• It helps in regulation, manufacturing, storage, and sale of food.
• It helps to create consumer awareness.

Labelling Requirements for Exporters

To make the food products acceptable in the international market, ensure that it’s packaging has sufficient information as per international standards. The exported food products packaging to must have the following information:

• Information related to the nutritional value and facts.
• The name of the food product with the name of the company and manufacturer.
• Product description.
• Name of the constituents.
• A declaration stating whether the product is vegetarian or non-vegetarian.
• Declaration related to food additives.
• Country of origin for imported products.
• The date of manufacturing and packaging.
• Best before time or the expiry date;
• Net weight/volume of the contents;
• The name of the exporter with address;
• User guidelines;
• Code and batch number.

The entity engaging in export of food products outside the country should meet the following labelling requirements. This is essential in order to be accepted in the international market. The Health Ministry keeps track of every exporter of food products activities and whether they are adhering to the guidelines and laid out compliances.

Documents Required to Export Food Products

The documents required to export food products from the country are:

• Narcotics certificate;
• FSSAI Registration Certificate;
• Import Export Code for Company;
• Permit from Ministry of Agriculture;
• Permit from the animal husbandry ministry.
• Certificate of product approval.

Obtaining a NOC for Export of Food Products

As stated above, before a food product is exported, its exporter should get an NOC. Having it paves the way for an exporter to get his/her FSSAI License for export of food products. If the exporter doesn’t have an NOC, he/she won’t be able to carry on with additional formalities related to export of food products.

To avail the NOC, an exporter must keep the documents ready. This includes the bill of entry, certificate of origin country, Import Export Code from the Directorate General of Foreign Trade, and end use declaration with other important documents. One may apply for an NOC quite easily and pay the requisite amount for lab testing of the food. Following are the requirement of FSSAI should be fulfilled:

• At the time of lab clearance, the food products must have a good shelf-life;
• The sample must be free of insects or any fungal infestation;
• The exporter must comply with the Packaging and labelling Regulations 2011 of FSSAI.

If all of these requirements are satisfied, a No-Objection Certificate is granted by the authority.

Points to Remember for Applicants

• FSSAI License for exporters has 2 subcategories: 

1. Manufacturers of food products for export and 
2. Exporting traders/merchants. 

A food business operator can apply for a license in either of the categories.

• The applicant trying to obtain the FSSAI exporter license must declare whether he deals in export only or conducts business in both domestic and export markets.
• The FBO has to ensure that the food products are fit and comply with the regulations of the importer country.

Norms of FSSAI for Organic Food Exports

In the previous few decades, our country has emerged as a key player of the global organic food market. Twenty years ago, our contribution to this food market was limited to only Tea exports. Now, we export 300+ products to 20+ countries. These exports combine to make approximately 135 million metric tonnes of certified food product exports.

Currently, we boast the highest number of organic food farmers and ranks 9th on the global list of land dedicated to organic farming. Many of our farmers are adopting organic farming and the states are also promoting such practices. For example, Sikkim has been declared as India’s first state with fully organic agriculture.

FSSAI Regulations Specified for Organic Food

Section 22, Food Safety & Standards Act, 2006 specifies that the organic food industry of the country will come under regulation of FSSAI. This is done to ensure there is a single food law to regulate the food industry in the country. It is widely acknowledged that organic food products have different regulations compared to other food products. Thus, after consultation with many industry-related experts, consultants, organisations, etc. the Food Safety and Standards (Organic Foods) Regulations 2017 came into being. These regulations have covered existing certification systems including:

• Participatory Guarantee System for India (PGS-India) under Ministry of Agriculture and Farmers Welfare.
• National Programme for Organic Production (NPOP) of APEDA under Department of Commerce.

Along with the aforementioned systems, any other system developed or notified by Food authorities was also covered under these new regulations.

Applicability of Regulations

The regulations apply to any person or corporate body who is involved in manufacturing, re-packing, packaging, imports, sale, distribution, and marketing of organic food. All players of these sectors are covered under the regulations and are required to comply with it.

Who is not covered under Regulations?

Any small scale organic food producer or any organic food producer organization (specified from time to time by Food Authority) who are involved in marketing and sale of their organic food products to the end customers are exempted from compliance of these regulations.

Features of Organic Food Regulations

Every food product offered for export or distribution in the domestic market is required to comply with applicable provisions of the following systems.

• Participatory Guarantee System for India (PGS-India).
• National Programme for Organic Production (NPOP).
• Any other system specified by the Food safety authority.

The regulations are divided into two parts;

• Labeling and Certification
• Imports & Reciprocity

Labeling Requirement Organic Food Vendors

While labeling organic food products it should be ensured that absolutely accurate information is specified on it. FSSAI’s Organic Logo must be printed on the label. Along with the FSSAI logo, the label should also carry quality assurance marks or certification marks of any other systems covered under organic food regulations.

Display Requirements

The seller of organic food products must display them such that they are distinguished from other regular items. The organic food exporters and vendors must comply with all the other regulations notified under the FSSAI Act along with organic food regulations.

There is no re-certification for Organic products required for any imports done under any bilateral/multilateral agreements executed as per Indian National Programme for Organic Production. It is true for other similar organic food standards of exporting countries. However, this is subject to the fact that they meet the respective standards applied to them. And all such imports should be accompanied with a transaction certificate. The certificate should be issued by an accreditation body covering such agreements.

Certification Requirement for Organic Food Vendors

While choosing a product the consumer analyses quality, safety, taste, etc. Only after making an informed decision regarding the product, they decide to purchase it. However, when it comes to food products,  they become extra conscious. While everyone is aware that organic food is good for health and environment and thus, for customers, taking the decision to invest in them needs firm assurance for the quality.

So, we can safely assume that certification brings the necessary trust of the consumers in the quality of the organic food product. The certification is compulsory to promote and sell organic food products. The certifications however require that the company complies with the standards of the authority.

The Food Safety and Standards Act states that all organic food products need to comply with NPOP and PGS-India provisions. As of now, there are 28 accreditation bodies authorized under NPOP and 562 Regional Councils established under PGS-India to give such certifications.

Need for FSSAI License Number

As mentioned before, starting any business requires a license from the company registrar. Similarly, before starting any food business operation in our country, obtaining a license is compulsory. All traders, restaurants, and manufacturers who are involved in the food business are needed to obtain the 14-digit license number. The licensing and registration procedures are regulated under the Food Safety act.

To Conclude…

We learnt that this License to export food products is essential for any business. It leads to a sense of assurance about the product in the importing countries. The LICENSE is issued for a particular period, which can be extended by FSSAI renewal. The businesses seeking extension are recommended to apply for renewal within 30 days before the expiry of existing license.

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