FSSAI Registration vs. State and Central License: Which One Does Your Food Business Need?

Short answer: The type of FSSAI authorisation your food business needs depends on its annual turnover and scale of operations. FSSAI Basic Registration is for petty food business operators with turnover up to ₹12 lakh. A State License is for mid-sized businesses with turnover between ₹12 lakh and ₹20 crore. A Central License is for large businesses with turnover over ₹20 crore, importers, exporters, and operators in multiple states.

What is FSSAI and why is it mandatory?

The Food Safety and Standards Authority of India (FSSAI) is the governing body responsible for regulating the food industry in India. It is mandatory for every Food Business Operator (FBO) to obtain an FSSAI Registration or License in compliance with the Food Safety and Standards Act, 2006. This 14-digit number ensures that food products undergo quality checks, reducing adulteration and substandard products, thereby building consumer trust and legal compliance for your business.

When is FSSAI Basic Registration sufficient?

FSSAI Basic Registration is for small-scale food businesses or startups. This category is designed for petty food business operators, which includes hawkers, temporary stall holders, and any business with an annual turnover not exceeding ₹12 lakh. It also covers small-scale production units with a limited capacity as specified by FSSAI regulations. This is the simplest and most affordable entry point for food compliance, ideal for home bakers, cloud kitchens, and small food stalls just starting out.

Who needs an FSSAI State License?

A business must upgrade from a Basic Registration to an FSSAI State License when its annual turnover exceeds ₹12 lakh but remains below ₹20 crore. This category applies to mid-sized manufacturers, storage units, transporters, retailers, marketers, and distributors operating within a single state. Hotels with a three-star rating and above (up to five-star), restaurants, and bars with this turnover range also require a State License issued by the respective state's Food Safety department.

When is an FSSAI Central License required?

An FSSAI Central License is mandatory for large food businesses with an annual turnover exceeding ₹20 crore. Additionally, certain business types require a Central License irrespective of turnover. These include 100% export-oriented units, food importers and exporters, operators of food e-commerce platforms, and businesses with operations in more than one state. Large manufacturers, railways, air and seaport food operators, and all food businesses operating in central government agency premises also fall under the purview of the Central Licensing Authority.

FSSAI Registration vs. License: A Quick Comparison

Here's a table to help you quickly identify the correct FSSAI category for your business.

Feature	Basic Registration	State License	Central License
Annual Turnover	Up to ₹12 Lakh	₹12 Lakh to ₹20 Crore	Above ₹20 Crore
Issuing Authority	State Government	State Government	Central Government (FSSAI)
Application Form	Form A	Form B	Form B
Indicative Annual Fee	₹100	₹2,000 to ₹5,000	₹7,500
Who is it for?	Petty retailers, hawkers, temporary stalls, home-based canteens	Mid-sized manufacturers, restaurants, hotels (3-star & above)	Large manufacturers, importers, exporters, e-commerce, multi-state chains
Validity	1 to 5 years	1 to 5 years	1 to 5 years

Worked example

Let's consider the journey of Priya, who starts a cloud kitchen, "Priya's Plates," from her home in Jayanagar, Bengaluru.

Year 1:

• Business: Priya operates from her home kitchen, selling meals online through aggregators.
• Turnover: Her total sales for the first financial year are ₹8 lakh.
• Required Compliance: Since her turnover is below ₹12 lakh, Priya needs to apply for FSSAI Basic Registration. She applies via the FoSCoS portal by filling Form A and paying the requisite fee of ₹100 per year. She receives a 14-digit registration number which she must display on her online listings and packaging.

Year 3:

• Business Growth: Priya's Plates becomes very popular. She rents a commercial kitchen space in Koramangala and hires staff.
• Turnover: Her business grows significantly, and her projected annual turnover for the year is ₹45 lakh.
• Upgraded Compliance: As her turnover has crossed the ₹12 lakh threshold, she is no longer eligible for Basic Registration. She must now apply for an FSSAI State License. She logs into the FoSCoS portal, selects the application for a State License (Form B), submits the required documents (layout plan, list of equipment, water test report etc.), and pays the government fee of a few thousand rupees. She is then issued a new 14-digit license number.

If Priya's business further expands to operate kitchens in both Karnataka and Tamil Nadu, she would then need to apply for a single FSSAI Central License for her head office and a State License for each location, as she is now operating in multiple states.

Common mistakes to avoid

1. Ignoring Registration: Many small FBOs, especially home-based businesses, believe FSSAI compliance is optional. It is mandatory for all food businesses, regardless of size. Operating without it can lead to penalties under Section 63 of the FSS Act, including fines and imprisonment.
2. Applying for the Wrong Category: Applying for a Basic Registration when your turnover demands a State License (or vice-versa) will lead to application rejection and delays. Always assess your turnover and business model correctly.
3. Failing to Renew: FSSAI licenses/registrations are valid for 1 to 5 years. You must apply for renewal at least 30 days before the expiry date. Failure to renew on time results in the license lapsing, and you will have to apply for a new one, which is a more cumbersome process.
4. Not Displaying the License Number: It is mandatory to display the FSSAI logo and license number on your product packaging and at a prominent place within your business premises. For online businesses, it should be mentioned on the platform.
5. Incorrect Documentation: Submitting incomplete or incorrect documents is a primary reason for application rejection. Ensure documents like address proof, identity proof, layout plans, and water testing reports are accurate and as per the required format.

How SP & SC helps

Navigating the FSSAI compliance landscape can be complex. SP & SC Legal and Taxation Services simplifies this entire process for you. We help you determine the correct FSSAI category (Registration, State, or Central) based on your specific business model and turnover. Our team handles the entire application process on the FoSCoS portal, from document preparation and submission to liaising with the authorities to ensure you receive your license or registration smoothly and without hassle. We ensure your food business starts on a foundation of complete compliance. For a comprehensive business setup solution, check our startup services.

Frequently asked questions

H3: Can I convert my FSSAI registration to a license?

Yes. When your business grows and crosses the ₹12 lakh turnover threshold, you must apply to upgrade your Basic Registration to a State License. This is done by filing a new application for a State License on the FoSCoS portal before your current registration expires.

H3: How long is the FSSAI license valid?

An FSSAI Registration or License can be obtained for a period ranging from 1 to 5 years. You can choose the validity period at the time of application and pay the fees accordingly. It is advisable to opt for a longer duration to avoid yearly renewal hassles.

H3: Do I need a separate FSSAI license for each branch?

If all your branches are within a single state, you may need a State License for each location depending on its individual turnover. However, if you have operations in multiple states, you must obtain a Central License for your head office/registered office and a separate State License or Registration for each branch/unit as per its eligibility.

H3: Is GST registration required for an FSSAI license?

While they are separate compliances, officials often ask for a GST registration certificate during the FSSAI license application process, especially for State and Central licenses, as it acts as a key business proof. If your business is not liable for GST, you may need to provide a declaration to that effect.

H3: What is FoSCoS?

FoSCoS (Food Safety Compliance System) is the official online platform of FSSAI, launched in 2020. It is the one-stop portal for all FSSAI-related services, including applications for new registration/licenses, renewals, modifications, and filing annual returns.

Get a fixed-fee quote

For end-to-end assistance with your FSSAI compliance, from determining the right category to securing the final certificate, share your business details with us. We provide a written fixed-fee quote after a preliminary review of your requirements. Contact SP & SC or WhatsApp us at +91 90356 74566 to get started.