FSSAI Licence for Home Food Business: Do You Need It?

FSSAI licence for home food business: is it compulsory?

FSSAI is the Food Safety and Standards Authority of India. Under the Food Safety and Standards Act, 2006, anyone who makes, stores, sells or distributes food as a business needs to be registered or licensed with it. The law does not exempt you because the kitchen is at home or because your shop is only an Instagram page.

So a person selling homemade pickles, chutneys, cakes or tiffin meals for money is generally treated as a Food Business Operator. The real question is not whether you need FSSAI, but which type fits your business.

Selling only to family or giving food free of cost is different from running a business. Once you take orders and payments regularly, you should assume the rules apply to you.

Which FSSAI type applies: registration, state licence or central licence?

FSSAI has different levels depending on the size and nature of your business. The type is decided by factors such as annual turnover, production capacity, the kind of food and whether you operate in one state or more.

Very small operators usually take a basic FSSAI registration. As per the current rules, the turnover limit for this is generally up to Rs 12 lakh a year, along with other conditions such as production capacity. Bigger turnover or wider activity needs a state licence, and certain categories or larger operations need a central licence.

Some points to keep in mind:

• Turnover is only one test. The type of food and the scale of production also matter.
• Selling across several states, or using multiple premises, can change which licence is right for you.
• Taking the wrong type is a common mistake. It can leave you technically unlicensed even though you hold a certificate.
• Thresholds and categories are updated from time to time, so confirm the current position before you apply.

Where must your FSSAI number appear?

Getting the number is only half the job. FSSAI rules require it to be shown properly, and customers, delivery apps and marketplaces will check it.

For packaged food, the label should carry the FSSAI logo and your licence or registration number along with other mandatory details. These are generally the product name, ingredients, net quantity, date of manufacture or best before date, veg or non-veg mark, and the business address.

Your FSSAI number should also appear on invoices and bills. If you sell through a food delivery app or an e-commerce marketplace, they will ask for the number before onboarding you. It is also good practice to show it on your Instagram bio or order page, as it builds customer trust.

What happens if your FSSAI licence expires?

An FSSAI registration or licence is issued for a fixed period chosen by the applicant, and it does not renew itself. Once the period ends, you are in the same position as someone who never had a licence.

Many small sellers forget this because the first approval feels like a one-time task. Running a business on an expired licence can attract the same action as running without one, and late renewal can bring extra fees.

A simple way to stay safe:

• Note the expiry date in your phone calendar as soon as you receive the certificate.
• Apply for renewal well before the date, not on the last day.
• Update your licence details if your address, products or business structure change.
• Keep your records and the latest certificate ready for any inspection.

What is the penalty for selling food without FSSAI?

Under Section 63 of the Food Safety and Standards Act, 2006, running a food business without the required licence can lead to imprisonment of up to six months and a fine that may go up to Rs 5 lakh. The actual outcome depends on the facts of the case and the decision of the authority or court.

Practically, trouble often starts with a customer complaint. A complaint to the food safety department can trigger an inspection of your kitchen, your records and your labels. If there is a safety issue, other provisions of the Act can also apply.

Apart from legal risk, there is a business cost. Marketplaces can remove your listings, and larger buyers or retail stores will not deal with an unlicensed supplier.

How to get started and how CGA can help

The process is online through the FSSAI portal. You choose the correct category, upload documents and pay the fee. Generally you will need your identity proof, photograph, proof of the premises, a list of products and, for licences, some additional documents and declarations.

Mistakes in category, address or product details can cause rejection or problems later. That is why many sellers prefer expert help. CGA's team of CAs and Advocates helps food businesses across India with FSSAI registration, licence, renewal and compliance, and also advises on related matters such as GST and business structure.

If you sell food from home and are not sure what applies to you, talk to us before you scale up. Ghar ka swaad bhi business hai, toh licence bhi zaroori hai.

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