FSSAI for Traders
FSSAI registration is a mandatory requirement for anyone involved in the food business in India including a trader of food products. It ensures compliance with food safety regulations and builds customer trust.
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In India, food safety is a top priority, and the Food Safety and Standards Authority of India (FSSAI) ensures that all food-related businesses adhere to strict regulations. For traders dealing in food products, obtaining an FSSAI license is not just a legal requirement but also a mark of trust and credibility. Whether you are a small food trader or a large distributor, having the right FSSAI registration is crucial for compliance and smooth business operations.
This comprehensive guide will walk you through everything you need to know about FSSAI licensing, including the different types of FSSAI licenses, eligibility criteria, and fees involved. We will also cover the validity period, the essential documents required, and the online application process to help traders obtain their license hassle-free. Additionally, we will explain how to check the FSSAI registration status, the benefits of securing an FSSAI license, and the process for renewal to ensure uninterrupted business operations. Lastly, we will discuss the penalties and offenses associated with non-compliance, helping traders stay informed and avoid legal complications.
Types of Traders
Traders in the supply chain act as intermediaries between manufacturers and end consumers. They facilitate the movement of goods at different levels. Here’s a detailed breakdown:
1. Wholesalers
Wholesalers buy goods in bulk from manufacturers and sell them in smaller quantities to retailers. They help in bulk distribution and price negotiation.
Types of Wholesalers:
Merchant Wholesalers – Own and store the products before selling them to retailers.
Cash-and-Carry Wholesalers – Sell to small businesses in bulk but require immediate payment.
Example: Metro Cash & Carry sells large quantities of goods to small retailers and restaurants.
2. Distributors
Distributors act as intermediaries between manufacturers and wholesalers or retailers. They usually have exclusive rights to sell specific brands in a region.
Example: Coca-Cola has authorized distributors who supply beverages to retailers and wholesalers.
3. Retailers
Retailers sell products directly to end consumers in small quantities. They are the final link in the supply chain.
Types of Retailers:
Supermarkets – Large grocery stores with household essentials (e.g., DMart, Big Bazaar).
Specialty Stores – Focus on specific food product categoriesÂ
E-commerce Retailers – Sell online via platforms (e.g., Blinkit, Dunzo).
Kirana store – Small, family-run retail stores in local neighborhoods.
Example: A local grocery store buys products from wholesalers and sells them directly to customers.
Eligibility for trader as Retailer or Distributors
Basic FSSAI Registration – Turnover up to 12 lakhs/annum.
State FSSAI License – Turnover upto 20 crores/annum.
Central FSSAI License – Turnover greater than 20 crores/annum
Eligibility for trader as Wholesaler
Basic FSSAI Registration – Turnover up to 12 lakhs/annum.
State FSSAI License – Turnover upto 30 crores/annum.
Central FSSAI License – Turnover greater than 30 crores/annum
Fee for FSSAI for traders
The FSSAI license fees vary based on the type of license and business turnover:
Basic FSSAI Registration: ₹100 per year
State FSSAI License: ₹2,000 to ₹5,000 per year (depending on business type)
Central FSSAI License: ₹7,500 per year
Additional fees may apply for renewals, modifications, or duplicate licenses.
Validity of FSSAI License
FSSAI licenses are valid for 1 to 5 years, depending on the applicant’s preference at the time of registration. To avoid penalties, traders must renew the license before 30 days of expiry.
Documents Required for FSSAI for traders
To apply for an FSSAI licence, food traders need to submit specific documents based on the type of licence (Basic, State, or Central). Below is a list of essential documents required for each category:
1. Documents for Basic FSSAI Registration (For Small Traders & Startups)
Applicant’s passport-size photo
Government-issued ID proof (Aadhaar Card, Voter ID, or Passport)
Business address proof (Rent agreement, electricity bill, or property tax receipt)
Food business details (Type of food products traded)
2. Documents for State & Central FSSAI Licence (For Medium & Large Traders)
Photo ID & Address proof of the applicant
Business registration certificate (GST Certificate, Partnership Deed, or Incorporation Certificate)
Proof of business premises (Rental agreement, NOC from landlord, or utility bill)
Food Safety Management System (FSMS) plan
List of food products handled/traded
Authority letter (If applying on behalf of a company)
Import-Export Code (IEC) (For import/export businesses)
Procedure for Obtaining FSSAI / Food Licence for traders Online
Follow these steps to apply for a new FSSAI License or Registration:
- Navigate to the Dashboard of FoSCoS website and click on “License/Registration” in the left-side menu.
- Select “Apply for New License/Registration.”
- Choose your State and carefully read the instructions before proceeding.
- Review Kind of Business section and select Retailer or Distributor or Wholesaler under the Trade/Retail Category.
- Select the appropriate option based on your business’s annual turnover.
- Complete all mandatory fields in Form B.
- Provide accurate communication details (Mobile Number, Email ID, etc.), as all official correspondence will be sent to these contacts.
- Upload the required documents.
- Make the fee payment through the available payment options and click “Apply.”
- After the payment is successfully processed, a receipt will be generated.
- This receipt will contain a 17-digit reference number, which should be saved for future reference and tracking.
FSSAI Registration Status
Traders applying for FSSAI registration receive SMS and email notifications at different stages of their application processing. They can also check the status manually by entering their application reference number in the ‘Track Application Status’ tab on the FoSCoS website.
FSSAI Registration Status Stages
Application Reverted
- If the status shows ‘Application Reverted’, it means FSSAI authorities have sent the application back for modifications or additional clarifications.
- The applicant must respond within 30 days from the date of reversion to avoid application rejection.
Registration Certificate Issued
- Once the FSSAI authorities approve the application, the status will change to ‘Registration Certificate Issued’.
- The applicant can log in to the FoSCoS portal and download the registration certificate.
Processing Time
The approval process usually takes 7-30 days, depending on the type of license applied for.
Benefits of Procuring FSSAI Food License
Obtaining an FSSAI license is not just a legal requirement but also a strategic move that can significantly boost a trader’s business. Here are the key benefits of securing an FSSAI food license:
1. Legal Compliance & Avoidance of Penalties
An FSSAI registration ensures that your food business complies with the Food Safety and Standards Act, 2006. Operating without a valid FSSAI license can result in hefty fines and legal actions.
2. Builds Consumer Trust & Brand Credibility
An FSSAI-certified trader gains customer trust as the FSSAI logo on food products signals quality and safety. Consumers prefer businesses that meet government food safety standards.
3. Business Expansion & Market Access
With an FSSAI license, traders can expand their business to multiple states, supply food to big retailers, and even export food products to international markets. Many e-commerce platforms and supermarkets require FSSAI registration for onboarding sellers.
4. Quality Assurance & Hygiene Standards
The FSSAI certification ensures that traders follow proper food safety protocols, improving product quality, hygiene, and storage conditions. This minimizes health risks and enhances product longevity.
5. Easier Access to Business Loans & Investments
Financial institutions and investors are more likely to fund FSSAI-registered food businesses, as compliance with food safety regulations reduces risks associated with product quality and legal issues.
6. Enhances Business Reputation
Having an FSSAI license differentiates your business from competitors and improves brand image, making your food products more reliable and marketable.
7. Government Support & Participation in Schemes
FSSAI-registered businesses can avail government subsidies, grants, and MSME benefits for food-related industries, promoting business growth and sustainability.
Renewal of FSSAI License
FSSAI licenses must be renewed 30 days before expiry to avoid penalties. The renewal process is similar to the initial registration:
Log in to the FoSCoS portal
Select the Renew License option
Submit updated documents (if required)
Pay the renewal fee
FSSAI Penalty and Offenses
Non-compliance with FSSAI regulations may result in the following penalties:
| Sl. No. | Offense | Penalty (Fine in Rs.) |
|---|---|---|
| 1 | Food quality not in compliance with the Act | 2 Lakh (Petty Manufacturer – 25,000) |
| 2 | Sub-standard food | 5 Lakh |
| 3 | Misbranded food | 3 Lakh |
| 4 | Misleading advertisement or false description | 10 Lakh |
| 5 | Presence of extraneous matter in food | 1 Lakh |
| 6 | Failure to comply with Food Safety Officer’s directions | 2 Lakh |
| 7 | Unhygienic processing or manufacturing | 1 Lakh |
Failure to comply with food safety regulations can lead to serious consequences, including fines, license cancellation, or legal action. FBOs must ensure strict adherence to FSSAI guidelines to maintain compliance and avoid penalties.
Conclusion
For food traders in India, obtaining an FSSAI license is more than just a regulatory requirement—it’s a key factor in building a trustworthy and successful business. From ensuring legal compliance and avoiding penalties to enhancing consumer trust, brand credibility, and business expansion opportunities, an FSSAI registration provides numerous advantages.
Whether you’re a small-scale food trader, wholesaler, or large distributor, securing an FSSAI food license will unlock new business opportunities and strengthen your market reputation. Start your FSSAI registration today and take your food business to the next level!
You can contact us at +91 9769647582 for any query or if you require our services to apply for FSSAI licence anywhere in Bharat.
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