Why it is important for food-tech startups to get FSSAI License?
The Food Safety and Standards Authority of India (FSSAI) has made the obligatory FSSAI registration for all e-commerce companies in the Year 2016 for the companies or the firms involved in the trading of food products or carrying the business of food services. To ensure safety and quality check of food or eatable products which are sold through online channels and/or stored in warehouses the department of FSSAI had made the FSSAI license as a compulsory requirement.
Further for all companies in e-commerce business it is obligatory for them to provide applicable details which is mentioned below on their gateways to make the customers mindful who are purchasing the food products through online networks such as Name of the company, Address of the company, Fssai License Number which is obtained after registration, Packaging and Price details of the food products and their nutritive factors and what are the ingredients used.
FSSAI has issued a mandatory notification w.e.f February 2017 to obtain the FSSAI license for all e-commerce food business operators (FBOs) such as swiggy, zomato and the other online supply chain of food business operator companies from Central Licensing Authority. Central Licensing Authority has been authorized to provide such licenses so as to ensure the safety or quality of food products delivered is not compromised and the rule and regulation of the Fssai Act has been complied duly.
For the food-tech startup company whose annual turnover is above Rs 12 Lac it is made obligatory to obtain the fssai license in addition with the basic fssai registration.
On the basis of annual turnover you have the option to apply for the licenses
- If the business turnover is not exceeding 12 lakhs annually then apply for the basic fssai registration under form A
- If the business turnover exceeding Rs. 12 lakh but upto Rs. 20 crore annually then apply for the state license under form B
- If the annually business turnover is more than Rs. 20 crore then apply for the central license under form B
Consequences of carrying the food business without obtaining the FSSAI license
Section 31 of the FSSAI, 2006 defines the penalty levied upon any person who is into the food business or food business operator except those who are exempted as per the fssai Act shall be subject to an imprisonment for the period which may extend to 6 months and include the fine which may encompasses to five lakhs rupees.
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