Applicability of FSSAI For Food Business In India

Check which FSSAI approval your food business needs under the updated 2026 regulatory framework. Know revised turnover thresholds and category-based licensing rules. Get your applicability assessed with Setindiabiz!

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FSSAI Basic Registration

Turnover Up to ₹1.5 Crore

FSSAI State License

Turn over ₹1.5 Crore to ₹50 Crore

FSSAI Central License

Turnover above Above ₹50 Crore

FSSAI Registration & License

A Food License is a necessary permission granted by the Food Safety and Standards Authority of India (FSSAI) to operate a food business. This license is specific to the location and has a designated duration. It is identified by a unique 14-digit registration number. In India, it is mandatory for food businesses to obtain licensing or registration as prescribed by the law. The legal framework for this requirement is established by the Food Safety and Standards Act, 2006, applicable nationwide. The objective of this act is to consolidate the laws pertaining to food and to establish the Food Safety and Standards Authority of India. The authority lays down scientifically-based standards for food articles, regulates their manufacturing, storage, distribution, sale, and import, ensuring the availability of safe and wholesome food for human consumption.

FSSAI Registration, FSSAI License, foscos fssai registration, Food license, Applicability Of FSSAI For Food Business In India, FSSAI State License

Determining whether a food business operator (FBO) requires registration or a central/state license depends on various factors. Small food business operators that do not engage in manufacturing or processing, have an annual turnover of less than 12 lakhs, and operate within a single state are typically required to obtain FSSAI registration. On the other hand, other food business operators need to procure a license. The eligibility criteria for registration and licensing are discussed in detail in the eligibility section of this page.

It’s important to note that even non-governmental organizations (NGOs) involved in the distribution of surplus food or temples organizing langar or bhandara and offering prashad must obtain the necessary FSSAI license or registration based on their specific eligibility criteria.

What Changed in FSSAI 2026? Key Updates for Food Businesses

On March 10, 2026, the Food Safety and Standards Authority of India (FSSAI) notified significant amendments to licensing and registration rules. A subsequent order on March 13, 2026, revised the turnover thresholds, effective April 1, 2026. These changes simplify compliance and benefit small and medium food businesses significantly.

Quick Answer: The main change is the registration threshold increased from ₹12 Lakh to ₹1.5 Crore. All licenses now have perpetual validity, eliminating the need for 5-year renewal applications. Annual fee Payment and return filing remain mandatory.

Three Major Changes

Aspect Previous Rules New Rules (April 1, 2026)

Registration Threshold

₹12 Lakh

₹1.5 Crore

License Validity

5 years (renewal needed)

Perpetual (no renewal)

Street Vendors

Separate registration required

Deemed registration (no filing needed)

Inspections

Fixed schedule

Risk-based (compliant businesses get fewer inspections)

Three-Tier Classification System: Registration vs State License vs Central License

FSSAI categorizes food businesses into three tiers based on annual turnover AND business type. This is critical: turnover alone doesn’t determine your category.

Tier 1: Basic Registration

Turnover: Up to ₹1.5 Crore/year

Annual Fee: ₹100

Valid For: Small retailers, tea shops, snack vendors, small eateries

Tier 2: State License

Turnover: ₹1.5 Crore to ₹50 Crore/year

Annual Fee: ₹5,000

Valid For: Medium restaurants, food chains, distributors

Tier 3: Central License

Turnover: Above ₹50 Crore/year

Annual Fee: ₹7,500

Valid For: Large manufacturers, importers, national chains

Critical Rule: Turnover Is NOT Always the Deciding Factor

This is the most misunderstood rule. Certain business types must obtain a higher license regardless of turnover. Many food entrepreneurs face penalties for misclassification.

⚠️ Important: Always verify your business type in the official FoSCoS “Kind of Business (KoB) Eligibility Matrix” (updated April 1, 2026) before applying. False declaration attracts penalties up to ₹10 Lakh under Section 61 of the Food Safety & Standards Act, 2006.

Businesses Requiring State License (Minimum)

Even with turnover below ₹1.5 Crore, these business types CANNOT get basic registration:

Business Type Why? Minimum License Tier

All Caterers

Wedding, event, party caterers handling food preparation for mass gatherings

State License (min)

Mid-Day Meal Caterers

Schools, NGOs providing nutritious food under government schemes

State License (min)

Street Vendors

Separate registration required

Deemed registration (no filing needed)

Grain & Cereal Millers

Flour mills, grain processors require specialized compliance

State License (min)

Businesses Requiring Central License (Mandatory, Regardless of Turnover)

These business types MUST obtain Central License even if annual turnover is ₹10 Lakh:

Business Type Examples Annual Fee

Importers & Exporters

Food imports from any country, merchant exports of food products

₹7,500

E-commerce Food Platforms

Swiggy, Zomato, BigBasket, Amazon Fresh, Blinkit

₹7,500

Nutraceutical Manufacturers

Health supplements, vitamins, protein powders, dietary supplements

₹7,500

Proprietary Food Makers

Non-standardized food products not covered by FSSAI regulations

₹7,500

100% Export-Oriented Units (EOUs)

Food manufacturing exclusively for export markets

₹7,500

Five-Star & Above Hotels

Premium hotel chains with 5+ star ratings

₹7,500

Multi-State Head Offices

Companies with food business operations in multiple states

₹7,500

Area of Operation: Understanding Premises-Based Licensing

critical misconception: “If I sell food across multiple states, I need a Central License.”

Truth: FSSAI licenses are premises-specific, not territory-based. Where your customers receive food doesn’t matter. What matters is where your physical food business premises are located.

Four Key Rules

Rule 1: Each Location = One License

If you operate 10 restaurant outlets in one city, you need 10 separate licenses (one for each outlet). The license category for each outlet depends on that specific outlet’s turnover and business type.

Rule 2: Interstate Sales ≠ Central License

Example: Your Delhi bakery ships cookies to Mumbai, Bangalore, and Hyderabad.

  • You operate from one premise (Delhi)
  • Your license is based on Delhi operations only
  • You need: State License for Delhi (based on your turnover)
  • No Central License needed just because customers are in other states

Rule 3: Multi-State Premises = Central License Mandatory

Example: Your company has a manufacturing unit in Delhi and a cold storage warehouse in Noida (UP).

  • You have food business premises in 2 states
  • You must obtain Central License at head office level
  • Each location then needs its own separate license

Rule 4: One State, Multiple Outlets

All premises in one state = no Central License needed, regardless of combined turnover. Each location gets its own State License or Registration.

Annual Fees & Perpetual Validity: What You Need to Know

What "Perpetual Validity" Really Means

Important Distinction: Perpetual validity does NOT mean you never pay fees or comply with rules. It means you don’t need to apply for renewal every 5 years.

What You Still Must Do Annually

Even with perpetual validity, two obligations remain:

Obligation Deadline Consequence if Missed

Pay Annual Fee

By specified due date

License automatically deemed suspended; food business cannot operate

Submit Annual Return (FSCR)

By specified due date

License automatically deemed suspended; penalties applicable

Complete Govt Fee Structure by Category

Business Category Basic Registration Fee State License Fee Central License Fee

General Manufacturers, Retailers, Wholesalers

₹100/year

₹5,000/year

₹7,500/year

Restaurants, Hotels (up to 4-star)

₹100/year

₹5,000/year

₹7,500/year

Storage, Transport, Distribution

₹100/year

₹5,000/year

₹7,500/year

Petty Snack/Tea Retailers

₹100/year

❌ Not available

❌ Not available

Hawkers (Itinerant Vendors)

₹0 (waived)

❌ Not available

❌ Not available

Importers, E-commerce, Nutraceuticals

❌ Not available

❌ Not available

₹7,500/year

FSSAI Tatkal Scheme: Get Your License Instantly (Within Hours)

The Tatkal scheme (launched July 1, 2024, updated in 2026) allows instant issuance of FSSAI licenses for qualifying low-risk food businesses through automated digital verification — no physical inspection required before approval.

How It Works: Apply on FoSCoS → Upload Aadhaar/PAN → System auto-verifies → License issued in hours → Post-grant inspections still occur (risk-based).

Who's Eligible for Tatkal?

  • Wholesalers and distributors (packaged food)
  • Retailers (packaged food only)
  • Food transporters
  • Storage operators (non-atmospheric)
  • Food vending agencies
  • Direct sellers
  • Petty snack/tea retailers
  • Hawkers (loose/prepared food only)
  • Importers and merchant-exporters

Who Cannot Use Tatkal:

  • Meat/fish retailers (except importers)
  • Dairy processors
  • Manufacturers (most categories)
  • Caterers
⚠️ State-Wise Availability: Not all states have Tatkal enabled. Current status:
  • Not Available: Chandigarh, Meghalaya
  • Partial: Himachal Pradesh (select categories only)
  • Limited: Jammu & Kashmir (all except Hawkers)

Street Vendors & Hawkers: Deemed Registration (No Separate FSSAI Filing)

One of the biggest reliefs in the 2026 amendment: street vendors registered under the Street Vendors Act, 2014, are now automatically deemed registered with FSSAI. This eliminates the dual-registration burden.

What This Means: If you have a valid street vendor certificate from your municipal authority, you don’t need to file a separate FSSAI application or pay FSSAI registration fees.

Conditions for Deemed Registration

Condition Details

Valid Street Vendor Certificate

You must have a valid registration/vending certificate issued by municipal authority under Street Vendors Act, 2014

Compliance

You must follow Schedule 4 hygiene requirements (sanitation, water quality, waste disposal, food handler hygiene)

Subject to Inspections

Food safety officers can still conduct risk-based inspections; deemed status doesn’t prevent oversight

Zero FSSAI Fee

No FSSAI registration fee required; local municipal fees still apply (if any)

Who's Covered Under Deemed Registration?

  • Street food vendors (chaat, snacks, beverages)
  • Mobile food carts and food trucks (if registered under Street Vendors Act)
  • Hawkers selling loose food items
  • Temporary food stalls at events (if certified by municipality)

Who's NOT Covered?

  • Caterers: Explicitly excluded, even petty caterers
  • Non-Registered Vendors: Those without Street Vendors Act certificate must apply separately for FSSAI registration

Get Your FSSAI License Today!

Start your food business legally. Quick, easy FSSAI registration. Apply now and grow with trust and compliance!

Frequently Asked Questions About FSSAI

Does turnover alone determine my FSSAI license category?

No. While turnover is a major factor, certain business types (importers, caterers, nutraceutical manufacturers) must obtain a higher license regardless of turnover. Always verify your business type in the official FoSCoS Kind of Business (KoB) Eligibility Matrix (updated April 1, 2026) before applying. Misclassification can result in penalties up to ₹10 Lakh.

What is the new registration threshold in 2026?

₹1.5 Crore annually. This is up from ₹12 Lakh under previous rules (effective April 1, 2026). This means small food businesses with turnover up to ₹1.5 Crore now qualify for basic registration (₹100/year) instead of a more expensive State License.

Do I need a Central License if I sell food across multiple states?

Only if your premises are in multiple states. If you operate from one premise in Delhi but ship to Mumbai, Bangalore, and Hyderabad, you need only a State License for Delhi. A Central License is required only when you have food business locations in 2+ states.

Can my dairy/meat business get basic registration?

It depends on the type. Only petty milkmen and milk vendors (turnover under ₹1.5 Crore) can get basic registration. Dairy processing plants, chilling units, and manufacturing facilities must obtain a State or Central License. All such businesses must comply with enhanced hygiene, safety, and testing requirements per official FSSAI FAQ (March 27, 2026).

Do importers need a Central FSSAI License?

Yes, always. Importers must obtain a Central License irrespective of turnover. Fee: ₹7,500/year. This applies to all food imports into India.

Do street vendors need separate FSSAI registration?

Not if registered under Street Vendors Act, 2014. They are deemed registered under FSSAI. However, they must still comply with Schedule 4 hygiene requirements and expect risk-based inspections. Food safety officers can still penalize non-compliance.

What does perpetual validity mean? Do I still pay fees?

Yes, perpetual validity means your license doesn’t expire, but annual fee payment is still mandatory. If you miss the annual fee payment or don’t submit the annual return (FSCR), your license is automatically deemed suspended. You cannot operate during suspension. Pay all arrears to reactivate.

How fast is the Tatkal instant approval scheme?

Usually within a few hours. Once you apply with verified Aadhaar/PAN, the system auto-verifies and issues your license instantly. No physical inspection is required before approval. Post-grant inspections still occur on a risk-based schedule

Can I run a home bakery or tiffin service?

Yes, if turnover is under ₹1.5 Crore. Home bakers and tiffin services qualify as “Home-Based Canteen” on FoSCoS and can get basic registration (₹100/year). Caterers (even home caterers) are excluded and must obtain State License.

Do nutraceutical/supplement manufacturers need a Central License?

Yes, always. Health supplements, vitamins, protein powders, and dietary supplements must obtain a Central License irrespective of turnover. Fee: ₹7,500/year.

Is 100% FDI allowed in India's food sector?

Yes, under different routes. Food manufacturing: 100% FDI allowed under automatic route (no government approval needed). Food retail/e-commerce: 100% FDI allowed under government approval route (case-by-case). Always verify the latest DPIIT Consolidated FDI Policy before finalizing investment structure.